BOB FD Calculator

Bank of Baroda Fixed Deposit Features

Bank of Baroda Fixed Deposit offers investors high interest rates at minimum risk. Following are some of the key features of a Bank of Baroda fixed deposit account:

• Guaranteed Returns: BoB fixed deposit schemes offer guaranteed income at a fixed interest rate.
• Tenure: The tenure of BoB FDs ranges from seven days to ten years.
• Minimum Amount: The minimum amount to open a BoB FD account is INR 1000.
• Maximum Amount: There is no limit on the maximum amount of investment in the Bank of Baroda FD. However, for BoB tax saving FD, the maximum investment is limited to INR 1.5 lakhs.
• Bank of Baroda FD rates: The Bank of Baroda fixed deposit interest rate ranges between 3.00% to 6.00% p.a.
• Senior Citizens FD Rate: Bank of Baroda offers preferential interest rates for senior citizen depositors. The BoB FD rates range between 3.50% to 6.65%.
• Safety: The Deposit Insurance Scheme insures the Bank of Baroda deposits up to INR 5,00,000.
• Loan against FD: BoB provides its depositors with a facility to avail a loan against their FDs up to 90%-95% of the deposit amount. A loan against the FD not only allows investors to meet their financial gaps but also helps in meeting liquidity requirements without breaking BoB FD.
• Nomination Facility: BoB depositors can nominate beneficiaries while opening the FD account.
• Auto-Renewal: BoB offers an auto-renewal facility of the fixed deposit account.

What is a Bank of Baroda FD Calculator?

Bank of Baroda FD Calculator is a simple online tool that helps in estimating the returns from an FD investment. The FD calculator only requires simple inputs like investment amount, target amount, rate of interest, and duration in years. The output of the Bank of Baroda FD calculator aids in better financial planning.
However, one must understand that the Bank of Baroda FD Calculator only provides an estimation and doesn’t guarantee any returns. The actual return might vary, and the exact maturity amount will be known only after one invested in Bank of Baroda FD.

How to use the Bank of Baroda FD Calculator?

It’s a good idea to estimate the prospective returns before making an investment decision. As a result, better investment planning is possible. In other words, assessing returns in terms of wealth gained instead of a percentage allows people to manage their financial goals in a better way. There are two ways one can estimate the returns from FD investment using Scripbox Bank of Baroda FD Calculator: investment amount approach and target amount approach.

Investment Amount Approach

Following are steps that you can follow to use the Bank of Baroda FD Calculator using the Investment Amount Approach:

• Firstly, enter the investment amount that you intend to invest in the Bank of Baroda FD scheme.
• Now, with the slider, adjust the desired tenure of the Bank of Baroda FD investment. For Bank of Baroda FD, the tenure usually varies from one to five years.
• Then, use the slider to adjust the interest rate on the Bank of Baroda FD.
• Next, select the compounding period for the Bank of Baroda fixed deposit investment. Choose any of the following compounding periods: monthly, quarterly, half-yearly and yearly options. Compounding frequency refers to the number of times interest gets compounded during the year. The amount of interest is determined by the frequency of compounding intervals. As a result, it should be considered carefully.
• Finally, under the senior citizen section, select the appropriate option (yes or no) because most banks provide senior citizen depositors preferential interest rates.

After all the inputs are entered, the Bank of Baroda FD calculator automatically shows the interest and maturity amount. The Bank of Baroda FD calculator shows a tabular format of the interest earned each year along with the opening and closing balance. Moreover, the Bank of Baroda FD calculator gives a graphical representation of the initial investment and maturity amount.

Target Amount Approach

While the investment amount approach requires an individual to enter the investment amount, the target amount approach estimates the investment amount based on the amount one expects from the Bank of Baroda FD investment. Following are the steps that one needs to follow to use the Bank of Baroda FD Calculator using the Target Amount Approach:

• Firstly, select how you want to receive the interest from Bank of Baroda FD, as a regular income or in a lump sum amount.
• Secondly, enter the target amount you want to receive from the Bank of Baroda FD investment.
• Lastly, enter the duration, interest rate and compounding frequency that the Bank of Baroda FD offers. Also, under the senior citizen section, select the appropriate option (yes or no) because most banks provide senior citizen depositors preferential interest rates.

The Bank of Baroda FD calculator gives the investment amount needed to achieve the target and estimates the interest one might earn. Moreover, the Bank of Baroda FD Calculator shows a tabular representation of opening balance, interest earned and closing balance for each year.

Benefits of using Bank of Baroda FD Calculator

1. Individuals can make better investing decisions if they can estimate potential returns from a certain investment. As a result, one can plan and accomplish their goals faster. Bank of Baroda FD interest rate calculator helps investors with aiding in this decision making process by providing results in a matter of seconds.
2. The interest amount from Bank of Baroda FD investment is affected by tenure, interest rate, compounding frequency, and investment amount. One can use the Bank of Baroda FD calculator to see which factor affects the interest rate the most by adjusting them and then can compare the results.
3. There are multiple FDs in the market that banks and NBFCs offer. Using the Bank of Baroda FD calculator, one can compare the maturity amount of different banks and NBFCs.
4. Investors can compare the Bank of Baroda FD Calculator results with the returns from other investments as well. This helps in shortlisting the best suitable investment option for financial goals. For example, an investor who wants to compare the Bank of Baroda FD investment results with PPF can use the Scripbox PPF Calculator and Bank of Baroda FD Calculator.
5. The Scripbox Bank of Baroda FD calculator has two approaches, namely, the investment and target amount approach. Individuals who know how much they wish to invest can choose the investment amount approach. While investors who know have a target amount that they wish to accumulate can use the target amount approach on the Bank of Baroda FD calculator.
6. The Bank of Baroda FD calculator provides results in graphical and tabular format. These representations clearly show the opening balance, interest earned, and closing balance for each year during the entire Bank of Baroda FD investment tenure. Hence investors can know how much balance is remaining in their Bank of Baroda FD after every interest payout.

How is Bank of Baroda FD Interest Calculated?

The interest amount from Bank of Baroda FD investment depends on a number of factors such as investment amount, tenure of the FD, compounding frequency, and the rate of interest. One can estimate the interest using two methods, namely, simple interest and compound interest. Let us understand the interest calculation using both the methods with the help of an example.

Simple Interest on Fixed Deposit

Simple interest on a fixed deposit is the wealth gained for a predetermined period at a fixed interest rate. Also, the interest amount will be the same throughout the investment tenure.
Formula
Simple Interest = (P * R * T)/ 100
P- Amount of investment, R- Interest rate of Bank of Baroda FD (%), T- Tenure of the Bank of Baroda FD
Example
Ms Akhila wants to invest INR 20,000 for 5 years at an interest rate of 6.5% per annum.
For Ms Akhila, the principal amount (P) is INR 20,000, rate of interest (R) is 6.5%, and tenure (T) is 5 years.
Simple Interest = (INR 20,000 * 6.5 * 5 years)/ 100 = INR 6,500
Maturity Value = Investment + Simple Interest earned during the tenure
Maturity Value = INR 20,000 + INR 6,500
Maturity Value = INR 26,500

Compound Interest on Fixed Deposit

Compound interest is the interest on the principal plus the interest accumulated so far. In other words, compounding means earning interest on interest. The duration of the investment, the number of compounding periods, and interest payout frequency affect the wealth gained from the investment. Higher the duration of investment, higher number of compounding periods, and low interest payout frequency will increase the interest income. Bank of Baroda fixed deposit interest is compounded every quarter.
Formula
A = P (1+r/n) ^ (n * t)
A = Value of the investment at maturity, P = Initial investment amount, r = Interest (in decimals), n = compounding periods in a year, t = investment duration in years
Example
Ms Akhila wants to invest INR 20,000 for five years at an interest rate of 6.5% per annum, compounded half-yearly.
For Ms Akhila, the principal amount (P) is INR 20,000, rate of interest (r) is 6.5%, tenure (t) is five years, and the number of compounding periods is 2 (n)
Maturity Amount = 20,000 (1+0.065/2) ^ (2*5)
A (maturity amount) = INR 27,537.88
Interest income = INR 27,537.88 – INR 20,000 = INR 7,537.88

Frequently Asked Questions