ICICI RD Calculator
ICICI RD calculator is a user-friendly online tool that helps in estimating the interest and maturity amount from an RD investment. The calculator is available online and an investor free to use it multiple times. In this article, we have covered the ICICI RD calculator and its interest calculation in detail.
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What is an ICICI Bank RD Calculator?
ICICI Bank RD calculator is an online tool that one can use to estimate the interest earned by investing in a recurring deposit. For recurring deposits, the maturity amount is the sum of all investments and the interest earned during the investment period. Also, recurring deposit interest gets compounded every quarter.
ICICI bank offers different schemes to suit a wide range of customers. One can choose between a range of tenures ranging between six months to ten years. The minimum amount for ICICI RD investment is INR 500 per month and thereafter in multiples of INR 100. Also, there is no limit on maximum investment in RD.
The ICICI RD calculator determines the interest and the value of the investment at a future date. The RD calculator is a simple tool. It works on the following inputs:
- Monthly deposit amount: Monthly investment amount one deposits in an RD account.
- Interest rate: The income that an RD investment earns. The banks determine the recurring deposit interest rates. The interest rates of recurring deposits RD for different banks are available online.
- RD term: It is the tenure of the recurring deposit investment (in years).
On entering the above details in the RD calculator, it generates the following results:
- Total investment: Sum of all monthly deposits in the RD.
- Wealth Gained: Interest income on RD investments.
- Total Corpus created: Sum of all investments and the wealth gained. In other words, it is the maturity amount of the investment.
How to use an ICICI RD Calculator?
One can use the ICICI RD calculator online for free. The calculator is simple and easy to use the tool. Entering the details such as monthly deposit amount and ICICI Bank recurring deposit rate helps in determining the maturity value. The calculator computes the wealth created from an investment. Furthermore, the calculator uses the future value formula to determine the maturity value of the investment. The following example helps in understanding the ICICI RD calculator better.
Ms Riti plans to invest INR 20,000 per month in a recurring deposit scheme for two years. The ICICI bank recurring deposit rate is 5.80%. The maturity value of the investment for Ms Riti using the ICICI RD calculator is:
The following are the RD Calculator inputs:
- Monthly investment amount: INR 20,000
- ICICI RD Interest Rate: 5.80%
- RD Term: 2 years
On entering the above inputs, the calculator displays the following outputs:
- Total Investment: INR 4,80,000
- Wealth Gained: INR 29,954
- Total Corpus Created: INR: 5,09,954
The investment of INR 4,80,000 made today at 5.80% interest per annum would be INR 5,09,954 in two years. The interest income for Ms Riti will be INR 29,954.
Benefits of using an ICICI Recurring Deposit Calculator
The following are some of the benefits of using a recurring deposit calculator:
- Simple and easy to use: The recurring deposit calculator is easy to use the tool. One can use it by entering the inputs to calculate their return.
- Saves time: The calculator computes the results within seconds. It saves time for investors from performing complex calculations.
- Accurate results: The calculator provides accurate results, and also the chance for error is almost zero.
- Comparison: One can use the calculator to compare various recurring deposits RD. This comparison helps them choose a scheme that benefits them the most.
- Future planning: One can plan their investments by analyzing the outputs from the calculator. The RD calculator estimates the returns from an investment. Also, estimating the potential returns will help one plan their investments and goals in a better way.
- Free to use: The calculator is an online tool that one can use multiple times to compute and compare returns from their recurring deposit investments.
How is interest and maturity amount on an RD calculated?
The banks set the interest rate for recurring deposits. The recurring deposit interest rates range between 5%-7% for most of the banks. The interest on a recurring deposit is compounded every quarter. Until then, the recurring deposit will earn simple interest. For example, if an investor invests in an RD in the month of May, the RD will earn simple interest until June. At the end of June, the interest is compounded. In other words, the interest will earn interest. For RD investment, the banks have four quarters. They are April to June, July to September, October to December, and January to March.
The formula for RD interest rate and maturity value
Using the following formula, one can calculate the maturity amount and interest earned from ICICI Bank RD.
Where, M = Maturity value
R = Monthly investment. It is the amount the investor wants to invest on a monthly basis.
n = Investment horizon in quarters
i = interest rate/400. The ICICI Bank sets the interest rate on ICICI RD under RBI guidelines.
Ms Aishwarya wants to invest INR 12,000 per month in an RD scheme for a tenure of 8 years or 96 months. The interest rate offered by the scheme is 6%. Ms Aishwarya can calculate the interest and maturity amount using the following formula.
M = 12000*[(1+6/400)^(96-1)](1-(1+6/400)^(-1/3))
M = 14,79,402
For a total investment of INR 11,52,000. The interest earned is INR 3,27,402, and the maturity value is INR 14,79,402.
Current ICICI Bank RD interest rates
Current ICICI RD interest rates are given in the table below.
ICICI RD interest rates are higher than their savings account rates. The interest on ICICI Bank recurring deposit schemes is compounded every quarter. The investor will receive the interest earned and investment amount upon maturity. ICICI Bank sets the ICICI RD rates.
Below are the factors affecting ICICI RD interest rates
- Investment horizon: ICICI RD rates vary with different tenures. The longer the investment horizon, the higher is the RD interest rate.
- Age of the investor: RD interest rates vary with the age of the investor. Also, senior citizens get additional interest rates on their RD investment.
- Economic condition: RD interest rates are dependent on the repo rates and inflation in the country. They are in line with the RBI guidelines and policies.
|Tenure||General RD Interest Rates||Senior Citizen RD Interest Rates|
|27 months to 10 years||6.00%||6.50%|
What are the documents required to open an RD account in ICICI Bank?
For opening an ICICI Bank recurring deposit account following are the list of documents required:
- Account opening form
- Recent passport size photograph
- KYC Documents
- Company & Individual: PAN Card, Passport Copy, Aadhar Card, Voter’s ID, and Driving License
- HUFs: HUF declaration deed, bank statement of the HUF, and self-attested PAN card
- Partnership Firms: Certificate of Incorporation, Partnership deed, and ID proofs of all the signatories.
However, to invest in a recurring deposit, one has to meet the eligibility criteria. Following is the eligibility criteria to invest in ICICI Bank Recurring Deposit is:
- Resident Individuals
- Non-Resident Indians (NRIs) and Persons of Indian Origin PIOs
- Sole proprietorship firms
- Trusts and companies
- Partnership Firms
- Public and Private Limited companies
Frequently Asked Questions
The highest interest rate on ICICI recurring deposit is 6% for a tenure of 27 months – 10 years. Also, for the same tenure, ICICI bank offers senior citizens an additional 0.5%. Hence the highest ICICI RD interest rate for senior citizens is 6.5%.
Investment in ICICI RDs does not qualify for tax saving under Section 80C of the Income Tax Act. Moreover, the interest income is taxable. The tax rate applicable to interest income on RD is individual investor’s income tax slab rates. Also, ICICI Bank cuts a TDS of 10% if the interest income exceeds INR 40,000 (INR 50,000 for senior citizens). ICICI Bank will cut the TDS rate at 20% if the investor doesn’t submit PAN Card details. Additionally, one can determine their taxable income using Scripbox’s Income Tax Calculator.
ICICI Bank allows investors to take a loan against their RD investment. This will also help them to meet their liquidity requirements without breaking their RD. Moreover, they can take a loan against their RD without having to go through the entire loan process. The terms of the loan are as per the bank’s rules, and they are subject to change.
ICICI bank offers loans such as loan against property (home loan), business loans, and education loans, etc., against recurring deposit accounts. Also, one can calculate the loan EMI using the Scripbox loan EMI calculator. The loan EMI calculator also works as a car loan EMI calculator, home loan calculator, and personal loan EMI calculator. One can use the calculator to compare in multiple scenarios by tweaking the car loan interest rate, personal loan interest rate, and home loan interest rate.
ICICI Bank allows investors to withdraw their RD investment prematurely. However, the bank will charge a penalty for the same. For deposits with tenure less than one year, the bank will charge a penalty of 0.5%. For deposits above one year, the penalty is 1% on the contracted interest rate.