SBI RD Calculator

State Bank of India provides an option to its account holders (new or existing both) to open a Recurring Deposit account and save regularly by depositing a fixed monthly amount for a pre-decided period of time.

What is a Recurring Deposit?

One of the reliable sources of investment, a Recurring deposit is also an investment instrument just like a Fixed deposit that helps an investor save money on a regular monthly basis. RDs are considered to bring disciple in an investor’s life as it inculcates a regular investment habit in them. State Bank of India just like other banks in our country provides RD account just like FD account. Both Recurring Deposits and Fixed Deposits mostly work on similar terminology. The main difference is that lump sum deposits are made under Fixed Deposits whereas Fixed monthly deposits are made under Recurring Deposits. 

Recurring Deposits offers an attractive interest rate that varies from one bank to another just like Fixed Deposits. The current SBI RD rates for General Citizens vary from 5.00% to 5.40%. The calculation of RDs is complex and hence RD Calculators are used by banks to calculate the amount to be received at the time of maturity.

SBI RD Calculator

The literal meaning of recurring is continuous. SBI Recurring deposits means continuous deposits that are made to the SBI bank RD account for a defined period of time to save your hard-earned money. The interest rate remains constant throughout the tenure of the RD, making RD Calculation a little less complicated.

SBI RD Calculator helps in the computation of returns in a hassle-free manner within a few seconds. It is quite easy when compared to manual RD Calculation as all you have to do is put in some details related to your SBI RD on the calculator, and it reflects the amount it will accrue after maturity.

Basic SBI RD Details

How to Use Online SBI RD Calculator?

The investor has to follow this simple procedure to calculate SBI RD returns online through RD Calculator:

• Visit the official website of the State Bank of India

• Enter your valid credentials (User ID and Password)

• Open the RD Calculator tab

• Enter the amount deposited every month

• Fill in the tenure of your RD investment

• The current SBI RD rate will be auto-filled

• In the case of using a third party website, the investor has to fill the interest rate offered by their bank

• Click on the “RD Calculate” button

• Your RD amount will be displayed immediately

Advantages of SBI RD Calculator

The main advantages of using an RD Calculator are:

• Save time and energy

• Easy to use

• Gives accurate results

• Offers instant comparisons between 2 or more bank RD interest rates

• Provides the right estimation of returns so that the future can be planned accordingly

Recurring Deposit Interest Formula

SBI Recurring Deposit can be calculated both with the help of SBI RD Calculator and RD Formula. Even though usage of a calculator is more efficient and hassle-free, an investor can also compute the maturity value manually with the help of the SBI RD calculation formula mentioned below:

Maturity value = R [1 + N – 1] – (1 + i) – 13

Here,

R = The Rate of Interest

N = Total number of quarters in the tenure

i = The monthly installments

Illustration:

Mr. X deposits an amount of Rs. 2,000 every month in his SBI RD account for 2 years. Assuming the current rate of interest to be 7%, the maturity amount of the SBI RD accounts will be:

Maturity value = 7 [1 + 50 – 1] – (1 + 5) – 13

Maturity value = Rs. 51,640

Eligibility Criteria for an SBI RD Account

• An Indian resident

• A member of HUF (Hindu Undivided Family)

• NRIs provided they have an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account

• A minor below 10 years by their parents or legal guardians

Documents Required to Open an SBI RD Account

Following documents are necessary for an RD account to be functional along with any other documents asked by the post office of India:

• Identification Proof, like:

• Aadhaar card

• PAN card

• Government ID card

• Senior citizen ID card

• Application form

• Passport size photographs

• Address proof, like:

• Passport

• SBI bank account statement

• Electricity bill

• KYC documents