The future value of investment will be
Indian banks offer many saving schemes to the general public. Of many schemes, RDs enjoy high popularity. RD or Recurring Deposits are savings schemes that allow you to deposit a predetermined amount monthly. These schemes enjoy higher flexibility than regular FDs and can be started with a nominal amount. The returns depend on your investment amount, interest rate, and tenure. An IDBI Bank RD calculator is a simple online tool that helps you determine the maturity amount and interest earned at the end of the RD tenure
With the help of the IDBI Bank RD calculator, you can estimate your RD returns in seconds and plan your savings accordingly. To use it, you just need to enter the intended deposit amount, the duration of the account, and the current interest rate that IDBI Bank is now offering.
An RD calculator calculates the maturity amount and interest earned at the end of the RD tenure. Online RD calculators are user-friendly and provide accurate estimates in seconds. Here’s how an RD calculator works:
- Enter the installment amount
- Next, enter the applicable interest rate
- Enter the tenure (in months)
And that’s it! The RD calculator will display the estimated interest earned and maturity amount at the end of the tenure.
You can use the formula given below to calculate RD. It is also the IDBI Bank RD calculator formula:
M = R [(1+i)^n-1] / (1-(1+i)^(-1/3) )
M = Maturity value
R = Monthly investment
n = Number of quarters
i = Interest Rate/400
To use the IDBI Bank RD calculator online, follow these steps:
- Enter the amount you intend to put into the recurring deposit account
- Enter the appropriate interest rate for the recurring deposit
- Input the duration in years
Once you enter this information, the online IDBI Bank RD calculator will evaluate the data and present an estimate of the maturity amount and interest you will earn.
Suppose you wish to invest Rs. 5,000 per month for 2 years, and the expected annual interest rate is 8%. Substituting the values in the online IDBI Bank RD calculator, the interest earned shall be displayed as Rs. 10,456, while the future value of the investment shall be Rs. 1,30,456.
- Accuracy: The online RD calculator ensures accurate and error-free results by removing human biases.
- Time-saving: The RD calculator automates the maturity and interest amount calculation, saving time and labour compared to manual calculation.
- Planning and decision-making: Using the RD calculator, you can compare various combinations and permutations of the deposit amount, tenure, and interest rate. This can help you plan your finances better.
- Setting financial goals: The calculator can help you determine how much you need to save each month and estimate the time it would take to accomplish those goals.