You can open a recurring deposit account with State Bank of India (SBI) if you hold an account with the lender. You have to deposit a certain sum of money for a certain period of times. Once the deposit period is over, you can withdraw the money for your future needs. Based on the deposits made, you can earn interest on it. The maximum interest rate which you can earn on your deposits is 5.70%.
However, before opening an RD account, you must calculate the maturity amount you will stand to earn based on your deposit amount. In order to calculate this, you can use an RD calculator offered by SBI. We will know more about SBI RD Calculator.
Know more about Recurring Deposit
Components of SBI RD Calculator
The components of SBI RD Calculator are given below:
- Deposit amount: You will have to enter the amount you wish to deposit on a monthly basis.
- Tenure: You will have to choose a tenure during which you will deposit the amount to your RD account.
- Interest Rate: Based on your tenure, the bank will provide you with an interest rate which you will earn on the deposits made by you. Once the tenure comes to an end, the interest rate earned on your total deposit will determine the maturity amount you will earn.
How can you use SBI RD Calculator?
Given below are the steps you will have to follow while using SBI RD Calculator:
- There are various third-party websites who offer RD Calculator facility to its customers. You can visit any one of these websites to use the tool.
- Enter the amount you wish to deposit on a monthly basis.
- Enter the tenure during which you will continue to make deposits.
- Enter the interest rate.
- Click on ‘Calculate’.
- You will be able to view the maturity amount you are likely to earn. You can enter different deposit amount, tenure, and interest rate to determine the maturity amount you feel will be suitable for you to take care of your financial needs.
Calculating interest on SBI RD
Given below is the formula applied to determine the maturity amount you will earn:
M =R[(1+i)n – 1]/1-(1+i)(-1/3) where
- M = Maturity value
- R = Monthly deposits to be paid
- n= Tenure during which the deposit is to be made
- i= Interest Rate
Advantages of using SBI RD calculator:
Some of the advantages of using SBI RD calculator are given below:
- It is a convenient tool to calculate the maturity amount you will earn based on your deposit.
- RD Calculator is accurate.
- You can use the calculator anywhere, anytime.
- You can use it any number of times to calculate the maturity amount depending on the deposit amount and interest rate.
SBI RD Calculator FAQs
- Will I have to pay anything to use SBI RD Calculator?
- Is the interest rate same for senior citizens?
- Is it mandatory to have a bank account with the bank to open an RD account?
- What is the minimum amount I can deposit?
- What is the maximum tenure offered if I open an SBI RD account?
No, SBI RD Calculator is free of cost. You won’t be required to pay anything to use the tool.
No, senior citizens earn 0.5% more than the one offered to an individual by SBI.
Yes, you must be a primary bank holder with SBI to open an RD account.
The minimum amount you can deposit is Rs.100.
The maximum tenure for which you can deposit to your SBI RD account is 10 years.
RD Interest Rate Pages
- United Bank RD Interest Rates
- Uco Bank RD Interest Rates
- Allahabad Bank RD Interest Rates
- Central Bank RD Interest Rates
- Federal Bank RD Interest Rates
- Indian Bank RD Interest Rates
- Andhra Bank RD Interest Rates
- Kotak Mahindra RD Interest Rates
- Syndicate Bank RD Interest Rates
- IOB RD Interest Rates
- City Union Bank RD Interest Rates
- Citybank RD Interest Rates
- Indusind Bank RD Interest Rates
- Corporation Bank RD Interest Rates
- BOM RD Interest Rates
