BOI FD Calculator

What is a Bank of India Bank FD Calculator?

The Bank of India (BOI) FD Calculator is a simple online tool. It helps in estimating the returns from Bank of India FD. Also, it calculates the wealth gained and maturity amount that investors can receive if they invested in the Bank of India FD Scheme. Furthermore, the Bank of India FD Calculator also shows a tabular and graphical representation of how the investment grows during the investment tenure.
The Bank of India FD calculator takes the investment amount, tenure, interest rate, and compounding frequency to estimate the wealth gained and maturity amount from the investment. However, the Bank of India fixed deposit calculator only provides an estimation of wealth that you can earn based on the inputs provided. Moreover, you can know the exact maturity amount once you invest in the fixed deposit with the Bank of India. Nevertheless, the Bank of India FD calculator is a simple tool available online for free. Also, it can be used multiple times to estimate the returns from Bank of India FD investment.

Features of Bank of India FD Fixed Deposit

Bank of India Fixed Deposit offers investors higher interest rates and minimum risk. The following are some of the key features of the Bank of India fixed deposit account:

• The tenure ranges between seven days to ten years
• The minimum amount to open an FD with the Bank of India is INR 10,000.
• No limit on the maximum amount of deposit in a fixed deposit account
• Bank of India FD offers interest rates in the range of 2.85% p.a to 6.80% p.a.
• Bank of India offers preferential interest rates to senior citizen depositors. The Bank of India FD rates range between 3.75% p.a to 6.80% p.a.
• Deposits up to INR 5,00,000 are covered under the Deposit Insurance Scheme of RBI.
• Bank of India also offers loans against FD to help depositors meet their liquidity requirements without breaking or withdrawing their FD.
• Bank of India allows depositors to withdraw their deposit amount prematurely. However, premature withdrawals come with a penalty.
• Bank of India allows depositors to nominate beneficiaries for the deposits while opening the account.
• Bank of India provides the auto-renewal facility of the FD account.
• Depositors can open Bank of India FD investment online at their convenience. Also, they can fill the online application form to start their FD investments. Upon submitting the form, the bank’s representative will contact the depositor for further processing.

How to use the Bank of India FD Calculator?

Every investor must check the return/interest earned from an investment. This helps the investors compare FDs returns provided by different banks. Also, the investor can compare FD investment with other investment alternatives (like mutual funds, bonds, ETF, etc.) to FD. Therefore, this allows the investor to plan their financial goals in a better way.
Scripbox’s online Bank of India FD Calculator is a simple tool that estimates the return from a Bank of India FD Investment.. There are two approaches to estimate the returns from FD investment using the Scripbox Bank of India FD Calculator. They are the investment amount approach and target amount approach.

Investment Amount Approach

The investment amount approach uses the total investment amount in a fixed deposit to calculate the result. In other words, investors who know how much they want to invest towards their fixed deposit can benefit from the investment amount approach. To determine the Bank of India FD maturity amount and interest earned for specific tenure, you need to follow the below steps:

• Firstly, decide the total investment amount for the fixed deposit
• Next, enter the investment duration in years or months of investment. For instance, if the investment duration is 2.5 years, then enter the total number of months, i.e. 30 months. 
• Provide the rate of interest
• Lastly, select the compounding period, i.e. monthly, quarterly, half-yearly or yearly. The compounding period is the payout tenure of the fixed deposit. The rate of interest in Bank of India FD depends and varies with the compounding frequency. Hence you must select this field appropriately. 

Once enter the details are provided,  the IOB fixed deposit calculator will provide the following information as an output:

1. Maturity amount for the investment period
2. Wealth gained or interest earned.

Additionally, The Bank of FD calculator shows the results in a  tabular format and a graphical representation of the initial investment and maturity amount.

Target Amount Approach

Through the target amount approach, investors can estimate the amount required to invest today to meet their future financial goals. Thus, the Bank of India FD calculator does a back-calculation of the amount you need to invest and the interest income you will earn after entering the target amount of investment. The following are the steps to use the Bank of India FD calculator with the target amount approach:

• Firstly, enter the expected target amount for the fixed deposit
• Next, enter the investment duration in years or months. 
• Enter the rate of interest. 
• Lastly, select the compounding period, i.e. monthly, quarterly, half-yearly or yearly. The compounding period is the payout tenure of the fixed deposit. The rate of interest in Bank of India FD depends and varies with the compounding frequency. Hence you must select this field appropriately. 

Based on the above inputs, the Bank of India FD calculator gives the investment amount required to achieve the target and estimates the interest the investor might earn. Moreover, the Bank of India FD Calculator shows a tabular representation of opening balance, interest earned and closing balance for each year.

Benefits of Using Bank of India FD Calculator

The following are the benefits of using the Bank of India FD calculator – 

Future Planning

Investors can make a better decision for planning their finances when they know the estimated maturity and interest amount. Such a decision will help in achieving the investment objective, be it short-term or long-run. Therefore, the BOI FD calculator helps estimate the returns and thus make a well-informed investment decision. 

Adjust the factors affecting

The interest earned on a fixed deposit depends on investment amount, interest rate, compounding frequency, and investment period. The BOI calculator helps in understanding which element is affecting the desired maturity amount. 

Comparision

The type of fixed deposit and interest rate offered by bank/ NBFCs varies. Therefore, using the BOI FD calculator can easily compare the maturity amount for different banks and NBFCs. Furthermore, there are multiple investment options apart from fixed deposit investments. Before investing in a fixed deposit, you can compare the returns and interest earned from other investment options with fixed deposits. This comparison will help the investor in evaluating which investment option is suitable for your financial goals. Scripbox provides different online calculators for other investment options as well. You can use these calculators by visiting our website. 

Different Approaches

Any investor can analyse their investment using two different approaches. Firstly, through the investment amount approach and secondly, by using the target amount approach. Through the investment approach, you can estimate the maturity amount and wealth gained at the end of the specific tenure. On the other hand, the target amount approach helps to evaluate what amount is required today to get the desired wealth post maturity. For instance, if  you want a lump sum amount of money, say Rs.100,000 and wish to know the monthly or lump sum amount to invest today, then the target amount approach is appropriate. 

Graphical Representation

The Bank of India FD calculator also provides a representation of results periodically in years. For example, it shows the opening balance, interest earned, and closing balance every year after year. This will help the investor to know the balance in real-time after every interest payout. 

How is Bank of India FD Interest Calculated?

The interest earned on a Bank of India fixed deposit investment depends on several factors. Such factors are the principal amount of investment, tenure, compounding frequency, and interest rate. You can calculate the interest amount of Bank of India fixed deposit using two methods: simple interest and compound interest. Let us understand the formulation under both the methods with the help of an example:

Simple Interest on Fixed Deposit

Simple interest is the interest earned on the principal amount at a predetermined interest rate during the tenure of investment.
Formula for calculation
Simple Interest = (P * R * T)/ 100
P- Principal amount invested, R- Rate of interest of Bank of India (%), T- Tenure of Bank of India FD
Example
Mr Mitesh invested Rs 20,000 for 5 years at an interest rate of 7% per annum.
Simple Interest = (Rs 20,000 * 7 * 5 years)/ 100 = Rs 7,000
Here, Principal amount invested (P) = Rs 20,000, Rate of interest (%) = 7% per annum, Tenure = 5 years
Maturity Value = Principal amount of Investment + Simple Interest earned during the tenure
Maturity Value = Rs 20,000 + Rs 7,000
Maturity Value = Rs 27,000

Compound Interest on Fixed Deposit

Compound interest is the interest earned on the principal amount of investment and the interest earned on the investment. The interest rate is raised to the number of periods (years) for which the interest will be compounded and multiplied by the principal amount invested.
Formula for calculation
A = P (1+r/n) ^ (n * t)
A = Maturity Amount, P = Principal amount of investment, r = Rate of Interest (in decimals), n = number of compounding in a year, t = number of years
Example
Mr Mitesh invests Rs 40,000 for 10 years at an interest rate of 5.75% per annum compounded quarterly.
Here,
Principal amount of investment = Rs 40,000, Interest Rate = 5.75%, Number of compounding in a year = 4 (once every quarter), Number of years of investment is 10 years
Maturity amount = 40,000 (1+0.0575/4) ^ (4*10)
A (maturity amount) = Rs 70,794.81
Interest amount = Rs 70,794.81– INR 40,000 = INR 30,794.81

Frequently Asked Questions