Urban Money

ICICI Bank RD (Recurring Deposit) Calculator

Recurring Deposit or RD is an investment tool that helps investors make regular deposits and garner good ROIs (returns on investment). It offers ease of investment and flexibility to users. Opening an RD account with ICICI Bank will let you save money consistently and reap benefits in the future. To know how much you can save by making regular deposits every month with an RD plan, try the ICICI RD calculator. 

The calculator lets you calculate the total savings amount for the fixed interest rate. It will offer you a clear idea of how much you stand to earn upon maturity.

What is an ICICI RD Calculator?

ICICI Bank RD Calculator is an online tool that can compute the interest earned on an investment in a recurring deposit scheme. For an RD, the maturity amount is the amount of all investments and interest earned during the tenure. The interest rate on recurring deposits is compounded quarterly. 

The ICICI Bank offers various schemes for different types of customers. One can pick from a range of tenures from six months to ten years from the ICICI RD calculator. The minimum amount you can invest in ICICI RD is ₹ 500 every month and multiples of ₹ 100.

Moreover, there’s no limit on the maximum investment in an RD. 

The ICICI RD calculator computes the value of the investment and the interest rate upon maturity that a user adds. It works on inputs like RD term, interest rates, and the monthly deposit amount.  

How to Use an ICICI Bank Recurring Deposit Calculator?

ICICI RD calculator online is free and easy to use. All you need to do is enter the particulars, such as the monthly deposit amount, interest rate, and desired tenure. This will help you determine the total amount of the investment upon maturity.

Moreover, the ICICI Bank RD calculator employs a mathematical value formula to calculate the maturity value of the investment. 

We have explained an example to help you understand the use of the ICICI recurring deposit calculator better. 

Suppose you plan to invest ₹ 30,000 monthly in an RD scheme for three years. The ICICI Bank recurring deposit interest rate is 5.50%. Therefore, you can get the following maturity amount of the investment using the ICICI RD interest rates calculator: 

The following would be the RD interest calculator ICICI inputs:

  • Monthly investment amount: INR 30,000
  • ICICI RD Interest Rate: 5.50%
  • RD Term: 3 years

The calculator will return the following results:

  • Total investment amount: ₹ 10,80,000
  • Total savings = ₹ 11,76,205
  • Interest earned = ₹ 96,205

An investment of ₹ 10,80,000 made today at an interest rate of 5.50% per annum would return you ₹ 11,76,205 in three years. You will earn an interest amount of ₹ 96,205. 

Benefits of Using an ICICI Bank Recurring Deposit Calculator

These are some significant benefits of using the ICICI Bank RD calculator:

  • Easy to Use: The ICICI RD calculator is simple and easy-to-use financial tool. You are simply required to enter the required inputs. In turn, the calculator will return the required values. 
  • Precise Results: The calculator renders the exact value of the return you will receive on investment. Plus, the chances for any error or incorrect values are almost zero compared to manual calculations, which tend to carry miscalculations and inaccuracies.  
  • Saves Time: Since the tool determines the results within seconds, it helps investors save time from complex calculations. 
  • Future Planning: You can devise your investments by the outputs returned by the ICICI RD calculator. The tool lets you select a scheme that may benefit you the most given your financial goals.
  • Comparison: The calculator lets you compare different types of recurring deposit schemes. The comparison will eventually help you to pick the best investment scheme that fits your financial goals.  
  • Free to Use: It’s a free online tool. You can use it multiple times to compare and determine numerous returns on recurring deposit investments before picking the combination that meets your needs.

How is the Interest and Maturity Amount on an RD Calculated?

The bank sets the interest rate for recurring deposits. Most banks' interest rate on recurring deposits typically varies from 5% to 7%. For the ICICI Bank, it varies from 3.75% to 6.50% based on the tenure and types of citizens. The interest rate on an ICICI RD account or any bank RD is compounded quarterly. 

For instance, your RD will not gain simple interest until June if you create a recurring deposit in April. At the end of June, the interest will be compounded. In other words, the interest will accrue interest. The banks have four quarters for an RD investment. They are from January to March, April to June, July to September and October to December. 

Formula & Example of ICICI Recurring Deposit Calculator

The interest rate under the recurring deposit plan is computed after considering several factors such as the RD scheme selected, tenure, and funds invested. 

The following formula will help you calculate a recurring deposit's interest rate and maturity amount.  

M = R [(1+i) n – 1]/ 1 – (1+i) -1/3 

In the above formula,

  • ‘M’ stands for maturity value,
  • ‘i’ stands for rate of interest/400
  • ‘n’ stands for the number of quarters
  • ‘R’ stands for monthly instalment

Let us consider an example to understand how this formula works.  

Let us suppose that you wish to invest ₹ 15,000 every month in an RD scheme for 10 years or 120 months. The scheme offers an interest rate of 6.50%. Therefore, you can calculate the interest and maturity using the following formula: 

M=R*[(1+i)^(n-1)]/(1-(1+i)^(-1/3))

M = 15000*[(1+6.50/400)^(120-1)](1-(1+6.50/400)^(-1/3))

M = ₹ 25,34,820

For a total investment of ₹ 18,00,000. The interest earned is ₹ 7,34,820, and the maturity value is ₹ 25,34,820.

ICICI Bank Recurring Deposit Interest Rates 2022

Given below is the list of ICICI Bank recurring deposit interest rates based on the tenure: 

Maturity Period Rate of Interest (% p.a.) w.e.f June 22, 2022,
General Senior Citizens
6 months 3.75% 4.25%
9 months 4.65% 5.15%
12 months 5.35% 5.85%
15 months 5.35% 5.85%
18 months 5.35% 5.85%
21 months 5.35% 5.85%
24 months 5.35% 5.85%
27 months 5.50% 6.00%
30 months 5.50% 6.00%
33 months 5.50% 6.00%
36 months 5.50% 6.00%
Above three years up to 5 years 5.70% 6.20%
Above five years up to 10 years 5.75% 6.50%
Above five years up to 10 Years margin for SRC has been changed on 0.75%

Key Highlights of ICICI Recurring Deposits

ICICI recurring deposits scheme is covered with various features. Some of the significant ones are mentioned below: 

  • You can earn the highest interest on an RD if you invest in the scheme for more than five years. 
  • In case you are a senior citizen, you garner the highest maturity at the highest interest rate of 6.50%.
  • The account opening process is hassle-free and requires minimal documentation.
  • There won’t be any closure charges or penalties if you opt for a premature withdrawal within seven days of RD account opening.
  • You can use the ICICI RD calculator multiple times to compare various schemes and determine maturity amounts at different tenures. 

Steps to Open an RD Account in ICICI Bank

There are four ways to open an RD account with ICICI Bank. All of them are easy and hassle-free. Just choose one according to your convenience. 

1. Offline Method

Visit the nearest branch of ICICI Bank. Fill out the application form for opening an RD account and submit it along with the documents required. 

2. Using Internet Banking

This can be done from the comfort of your home. Follow the steps below:

Step 1: Visit the internet banking portal of the ICICI Bank.

Step 2: Login using your user ID and password. 

Step 3: Go to the ‘My Accounts’ tab and click on the ‘Open Fixed/Recurring Deposit’ section.

Step 4: Click on the ‘Open Recurring Deposit’ option. 

3. Via Mobile Application

Another alternative is to use ICICI mobile banking app. You must follow the steps below:

Step 1: Download the iMobile App from the Google Play store or Apple store.

Step 2: Generate a four-digit MPIN (Mobile PIN) and log into the application using the same. 

Step 3: Select the ‘Accounts & Deposits’ section and choose the ‘Deposit (FD/RD) option.

Step 4: Click on the ‘Open Recurring Deposit’ link.

4. Connect with the Customer Care of the ICICI Bank

Dial the toll-free number 1860 120 7777, choose your preferred language and follow the automated instructions. 

In case you are an existing customer, press ‘1’. Again press ‘1’ for banking accounts. Then, you will be asked to enter the registered number and your debit card’s PIN to speak to the bank’s customer care executive.

Frequently Asked Questions (FAQs)

What is the highest RD rate for ICICI Bank?

For account holders with a tenure of 5 years or above, the highest RD they get is 5.75%, and for senior citizens, it is 6.50%.

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

The applicant must deposit a minimum amount of ₹ 500 to open an RD account with ICICI Bank.

Is there a premature withdrawal facility for recurring deposits available with ICICI Bank?

The premature withdrawal facility for the ICICI Bank RD account is available under certain conditions. The bank will calculate interest at the rate applicable for the deposit term. Moreover, the deposit amount collected in the account until the termination date, payable by the depositor to ICICI Bank, shall be transferred to the account holder.

Do senior citizens receive any benefits from ICICI Bank RD?

When opened, senior citizens get comparatively higher interest rates on a recurring deposit account.

What is the maximum interest offered by ICICI Bank on its RD?

The maximum interest offered by ICICI bank on recurring deposits is 6.50% for senior citizens and 5.75% for regular citizens.

What if I delay paying my monthly installment of the bank RD?

If you have missed your payment, you will be fined with a penalty of paying a monthly interest rate of ₹ 12 per ₹ 1,000 or part of it or as may be specified by the bank for the delayed period.

Is the interest earned on bank RD taxed, and how?

The government deduct 10% TDS (Tax Deducted at Source) on the interest you earn on your RD. The TDS won’t be deducted from the interest earned if your RD is up to ₹ 10,000. 20% of TDS will be deducted if you fail to furnish PAN information to the bank.

Will I receive a receipt of the recurring deposit amount?

No, you won’t get any receipt. However, the deposited and interest amounts will be shown on the account statement and summary page.

What is the range of tenures for an ICICI Bank recurring deposit scheme?

The tenure for ICICI recurring deposits ranges from 3 months to 10 years.