Urban Money

Federal Bank RD (Recurring Deposit) Calculator

Federal Bank RD Calculator is an online tool that calculates the maturity amount, interest earned, and the interest rate on the Recurring Deposit (RD) account with Federal Bank. This tool is designed to help customers to plan their investments and estimate the returns on their Recurring Deposit account. The calculator considers the deposit amount, deposit tenure, and interest rate to estimate the maturity amount and interest earned.

How to Use the Federal Bank’s RD Calculator?

Using a Federal Bank recurring deposit calculator is a simple process. We have outlined a step-by-step process:

  • Go to the Urban Money official website and locate the recurring deposit calculator.
  • Enter the deposit amount you want to invest in the RD account.
  • Select the deposit tenure (the period you want to keep the money in the RD account)
  • Enter the interest rate offered by the bank for the selected deposit tenure.
  • Click on the "calculate" button.
  • The calculator will show the maturity amount (the total amount you will receive at the end of the deposit tenure), the interest earned, and the interest rate.

Note: You can use the calculator multiple times with different deposit amounts and tenures to compare the returns and choose the best option.

Benefits of Using the Federal Bank’s RD Calculator

There are several benefits of using the Federal Bank's RD Calculator. Some of them are:

  • The calculator can be accessed online, which means you can use it anytime and from any location.
  • You can use the calculator to plan your savings and investment goals by comparing different deposit amounts and tenures.
  • The calculator saves time by providing the results in a matter of seconds, whereas manually calculating the maturity amount and interest earned can take much longer.
  • By using the calculator, you can make a more informed decision about the deposit tenure and amount that will help you achieve your financial goals.
  • The calculator can help you to budget your savings by providing an estimate of the maturity amount, which will help you to plan for any future expenses.
  • The calculator is easy to use and does not require special skills or knowledge, making it accessible to all customers.

How is the Interest and Maturity amount on a Federal Bank RD Calculated?

The interest and maturity amount on a Federal Bank Recurring Deposit (RD) account is calculated using the Simple Interest method. In this method, the interest is calculated only on the principal amount, not the accumulated interest. The interest rate offered by the bank on an RD account is usually higher than the interest rate on a savings account, which may vary depending on the deposit tenure.

The bank uses the following formula to calculate the interest earned on an RD account:

Interest Earned = (Deposit Amount x Interest Rate x Deposit Tenure) / (12 x 100)

Where,

  • Deposit Amount is the sum of money that you deposit in the RD account. 
  • Interest Rate is the interest rate offered by the bank, usually higher than the savings account interest rate. 
  • Deposit Tenure is when you want to keep the money in the RD account.

The maturity amount is calculated by adding the interest earned to the deposit amount.

Maturity Amount = Deposit Amount + Interest Earned

Note: The interest rate offered by the bank on an RD account may vary depending on the deposit tenure. Also, the interest is compounded every quarter, which means that interest is calculated on the principal and accumulated interest every three months.

Example of Federal Bank RD Calculator

Here is an example of how to calculate the interest and maturity amount on a Federal Bank Recurring Deposit (RD) account:

  • Deposit Amount: INR 50,000
  • Deposit Tenure: 12 months
  • Interest Rate: 7% p.a

Interest Earned = (50,000 x 7 x 12) / (12 x 100) = INR 3,500

Maturity Amount = 50,000 + 3,500 = INR 53,500

In this example, if you deposit INR 50,000 for 12 months at an interest rate of 7% p.a, you will earn INR 3,500 in interest. The maturity amount, which is the total amount you will receive at the end of the deposit tenure, will be INR 53,500.

Key Highlights of Federal Bank Recurring Deposits 

Here are some key highlights of Federal Bank Recurring Deposits (RD):

  • Flexible deposit tenure: Federal Bank offers flexible deposit tenure options, starting from as low as six months to a maximum of 120 months.
  • Competitive interest rates: Federal Bank offers competitive interest rates on their RD accounts, which can help customers earn higher returns on their savings.
  • Auto-renewal: The RD account automatically renews on maturity for the same period as the original deposit at the prevailing interest rate.
  • Nomination facility: The RD account holder can nominate a person to receive the maturity proceeds in case of death.
  • Easy to open: The account can be opened with a minimum deposit of INR 50, and any deposits in multiples of INR 10 can be made.
  • Easy to operate: RD account can be easily operated by standing instructions for transferring funds from your savings account to the RD account on the due date.

How to Open an RD Account at the Federal Bank?

Opening a Recurring Deposit account with Federal Bank is a straightforward process that can be completed online or offline. 

  • One can use the internet banking facility offered by the bank via FedNet or FedMobile, to open an RD account. 
  • Alternatively, if one does not have internet banking enabled, they can visit a Federal bank branch in person to open the deposit. 
  • It's important to note that the process may vary depending on the bank's policy and regulations. It is always advisable to check with the bank for the most accurate and up-to-date information.

Federal Bank Recurring Deposit Interest Rates 2023

Federal Bank offers a range of interest rates on their RD accounts that are sure to meet the needs of any investor.

The table below showcases Federal Bank Recurring Deposit Interest Rates and how you can maximise your savings in the upcoming year.

Tenure Single Deposit Less than ₹200 Lakhs - General Public Single Deposit Less than ₹200 Lakhs - Senior Citizen
7 days to 29 days 3.00% 3.50%
30 days to 45 days 3.25% 3.75%
46 days to 60 days 4.00% 4.50%
61 days to 90 days 4.25% 4.75%
91 days to 119 days 4.50% 5.00%
120 days to 180 days 4.75% 5.25%
181 days to 270 days 5.75% 6.25%
271 days to less than one year 6.00% 6.50%
One year to less than 18 months 6.60% 7.10%
18 months to 2 years 7.25% 7.75%
Above two years to less than three years 6.75% 7.25%
Three years to less than five years 6.50% 7.00%
five years to 2221 days 6.30% 6.95%
2222 Days 6.40% 7.05%
2223 days and above 6.30% 6.95%

Frequently Asked Questions (FAQs)

Does the Federal Bank have an RD account?

Yes, Federal Bank does have Recurring Deposit (RD) accounts.

What is the highest RD rate at the Federal Bank?

The highest RD rate at Federal Bank is 7.25% p.a.

What is the minimum amount required to open an RD account with the Federal Bank?

The minimum amount required to open an RD account with Federal Bank is INR 50.

Is there a Premature withdrawal facility for recurring deposits available with Federal Bank?

No, the Federal Bank doesn’t offer a premature withdrawal facility.

Do senior citizens receive any benefits from Federal Bank RD?

Yes, senior citizens receive 0.50% extra interest on their RD’s.

What if I delay paying my monthly instalment of the Federal Bank RD?

You may be charged a penalty if you delay paying your monthly instalment.

Can I open an RD account online at Federal Bank?

Yes, you can open an RD account online in Federal Bank through an internet banking account (FedNet or FedMobile).

Is the Federal Bank safe for RD?

Federal Bank is a safe and trusted financial institution, and depositors’ money is insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme.