You can open a recurring deposit (RD) account if you are a Bank of Baroda (BOB) customer. By depositing some amount on a monthly basis for a certain number of years, the customer is adding to its savings. When the investing period is through, you will receive a maturity payment.
However, you must use a Bank of Baroda RD calculator to calculate the interest rate by mentioning the amount you will be depositing for the tenure. Once your account reaches maturity, you can opt for the BOB RD service.
Let us take you to the nitty gritty of the Bank of Baroda RD calculator.
What is the Bank of Baroda Recurring Deposit?
Customers have the freedom to invest a fixed amount each month and save money with simplicity, thanks to recurring deposits (RD). In India, most banks and NBFCs provide recurring deposit accounts ranging from six months to ten years. For average residents, the interest rate typically varies from 3.50% to 5.50% annually. Senior citizens receive an additional interest rate of 0.50% to 0.80% on all deposit terms.
Recurring deposit (RD) programmes are available to Bank of Baroda's retail customers. There are two BOB RD schemes offered, including both fixed monthly deposits and flexible monthly deposit characteristics.
Benefits of BOB RD Scheme
- In rural and semi-urban branches, a minimum of INR 50 is needed to start the account; urban and metro branches have a minimum of INR 100.
- The tenure may be between 6 and 120 months.
- Utilize the flexible BOB RD scheme to make flexible monthly payments based on the available excess.
- Bank of Baroda's recurring deposit interest rate provides enticing interest rates on your deposits.
- There is a possibility of premature withdrawal under specific circumstances.
- The maximum loan/overdraft limit is 95% of the outstanding balance.
- Late payments may be subject to a penalty.
- There is a nomination facility.
- Under the current income tax regulations, the tax will be withheld at the source.
- At the account holder's request, interest certificates will be generated.
How to Use Online Bank of Baroda RD Calculator?
The steps you must take to use the online Bank of Baroda Recurring Deposit calculator or the BOB RD calculator are listed below:
- Enter the desired deposit amount.
- The investment tenure is now present.
- Enter the interest rate that you will earn on your deposit given the tenure and the amount deposited. For instance, if you deposit a sum of INR 100 each month for 10 years, you will receive interest at a rate of 5.30%.
- You can view the maturity amount you will receive after the transaction once all the values have been input.
Basic Details of Bank of Baroda RD
Bank of Baroda RD calculator, or BOB RD calculator, has a few notable takeaways. The basic details of the BOB RD scheme are given below:
|Minimum Deposit Amount||INR 50 in rural and semi-urban areas INR100 in urban and metro areas|
|Tenure||6 months to 120 months|
|Additional interest rate for senior citizens||0.50% for deposits below INR 1 crore|
|Bank of Baroda recurring deposit interest rate||5.25%|
|Highest interest rate offered||5 years and up to 10 years|
|Amount of loan that can be availed against the RD||95% of the outstanding balance|
|TDS||Deduction as per Income Tax rules|
|Penalty for delay in instalment payments||None|
Benefits of using a Bank of Baroda Recurring Deposit Calculator
Bank of Baroda RD calculator holds the following benefits:
- You may quickly calculate how to plan your investment in recurrent deposits with the Bank of Baroda RD calculator.
- It carefully explains how much you should put aside each month to reach the target corpus at account maturity or any other financial objective.
- For rapid and precise results, the clever AI-powered calculator takes into account a variety of different parameters.
- It eliminates the headache of manual calculations, which run the risk of being wrong and time-consuming. The BOB RD calculator is simple to use and saves time.
- You have the chance to contrast the RDs provided by two or more banks.
- It makes sense that you would want to arrange your finances for the long term; this calculator helps you figure out how much you will need to set aside each month for investing.
How is the Interest and Maturity Amount on an RD Calculated?
You can calculate the interest and maturity amount with the Bank of Baroda RD calculator.
The formula to calculate the maturity amount is:
Maturity amount = Total deposits + Interest
Here, total deposits amount to monthly deposits multiplied by the number of months in which payments were made.
The formula to calculate interest is:
Interest = P * n * (n+1) * r / 2400
Here, ‘P’ stands for the monthly deposit, ‘n’ stands for the number of months, and ‘r’ is the annual interest rate.
Consider depositing INR 500 per month for 10 years in the BOB RD account. The Bank of Baroda recurring deposit interest rate is 5.25%
You can either calculate the maturity and interest amount through the BOB RD calculator or do it manually.
Using the formula, we get:
Number of months = 12*10 = 120 months
Total Deposit = 120*500 = 60,000
Interest = 500 * 120 (120+1) * 5.25% / 24 = 15,881
Maturity = 15881 + 60000 = 75,881
The maturity amount is INR 75,881 and the interest amount is INR 15,881 for a deposit of INR 500.
Current BOB RD Interest Rates Calculation 2022
You can get enticing Bank of Baroda RD rates. Recurring deposits and flexible recurrent deposits are two different types of recurring deposit schemes that the bank offers. The Bank of Baroda recurring deposit interest rate for the year 2022 is given in the table below:
|Tenure||General Rates||Senior Citizen Rates|
|181 - 270 days||4.30%||4.80%|
|271 - 364 days||4.40%||4.90%|
|366 - 400 days||5.00%||5.50%|
|401 days to 2 years||5.00%||5.50%|
|2 years 1 day to 3 years||5.10%||5.60%|
|3 years 1 day to 5 years||5.25%||5.75%|
|5 years 1 day to 10 years||5.25%||5.75%|
Note: The interest rates mentioned are for deposits worth less than INR 2 crores, and the rates stand true as of July 2022.
Things to Consider While Calculating Bank of Baroda's Recurring Deposit
To determine the amount you can earn upon maturity, enter the information below into the Bank of Baroda RD calculator. Before adding the information, take into account some of the essential considerations. The instalment type, interest rate, and deposit duration are a few variables. Once these procedures are completed, you can open a recurring deposit account that meets your needs. Below is a detailed explanation of these elements:
Monthly Deposit Amount
A larger deposit amount typically translates to a higher interest rate. The larger your monthly deposit amount, the better the interest rates will be. The calculator's deposit amount can be changed to meet your needs in terms of money.
The higher the interest rate, the more would go into the monthly deposit. Higher interest rates tend to add up in the long run. Hence, before you start your recurring deposit, compare all the interest rate options in the calculator to see what works best for you.
The longer the deposit period, the higher the interest rate, and the shorter the period, the less interest you gain upon maturity.
Get started with Investing Today
With the BOB RD scheme, you can start investing today. Skip the wait time and step into the pool of money, a result of your investment in recurring deposits.
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Frequently Asked Questions (FAQs)
What is the RD interest rate in BOB?
The RD interest rate in BOB differs from time to time.
How do I calculate my RD?
You can calculate interest on RD by using the following formula: A = P(1+r/n) ^ nt. Where ‘A’ represents the final amount, ‘P’ represents principal, ‘r’ represents annual interest rate, ‘n’ represents the number of times interest has been compounded, and ‘t’ represents the tenure.
How is the RD return calculated?
You can calculate the mature amount as a summation of the total deposits and interest rate.
Can I open RD online in BOB?
Yes, you can open a recurring deposit account online at the Bank of Baroda.