Benefits Of SBI RD Calculator
Updated On Mar 23, 2022
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SBI Bank RD calculator is an online tool that an individual can use to estimate the interest earned by investing in a recurring deposit. For recurring deposits, the maturity amount is the sum total of all investments, plus the interest earned during the investment period. Also, RD interest gets compounded on a quarterly basis.
SBI bank offers RD for a host tenure option. One can choose between a range of tenures ranging between one year to ten years. The minimum amount for RD investment is INR 100 per month and thereafter in multiples of INR 10. Also, there is no limit on the maximum investment amount in RD.
The SBI RD calculator determines the interest and the value of the investment at a future date. The calculator is a simple tool that works on the following inputs:
- Monthly Deposit Amount: It is the monthly investment amount one intends to deposit in an RD account.
- Interest Rate: It is the income from RD investments. The banks determine the recurring deposit interest rates. The interest rates of recurring deposits RD of different banks are available online.
- RD Term: It is the tenure of the recurring deposit investment in years.
How To Use An SBI RD Calculator?
One can use the SBI RD calculator online for free. The calculator is simple and easy to use. Entering the details such as monthly investment amount and SBI Bank RD interest rate helps in determining the maturity value. The calculator calculates the wealth created from an investment. Also, the calculator uses the future value formula to determine the maturity value of the investment.
Benefits Of Using An SBI Recurring Deposit Calculator
The following are the benefits of using a recurring deposit calculator:
- Simple And Easy To Use: The RD calculator is an easy to use tool. Also, an individual can use it by entering the basic inputs to calculate their return.
- Saves Time: The calculator determines the results within seconds. Hence it saves investors time by performing complex calculations.
- Accurate Results: The results from the calculator are accurate, and also the chance for error is almost zero.
- Comparison: Investors can use the calculator to compare interest rates of various recurring deposits RD. This comparison helps them choose the one that benefits them the most.
- Future Planning: Investors can plan their investments by analyzing the outputs given by this calculator. The calculator estimates the returns from an RD investment. Also, knowing the potential returns will help one plan their investments and financial goals in a better way.
- Free To Use: The calculator is an online tool that one can use multiple times to calculate and compare returns from their recurring deposit investments.
How To Open An RD Account In SBI?
One can open an SBI RD account by visiting the nearest SBI bank branch or online through the bank’s website.
For offline account opening, one has to duly fill in all the details in the RD account opening form. Along with the form, they have to submit the following documents:
- Recent passport size photograph
- KYC Documents
- For Individual & Company: PAN Card, Passport Copy, Aadhar Card, Voter’s ID, and Driving License
- HUFs: HUF declaration deed, bank statement of HUF, and self-attested PAN card
- For Partnership Firms: Certificate of Incorporation, Partnership deed, and ID proofs of all authorized signatories.
Following is the procedure for opening the SBI RD account online:
- Log into www.onlinesbi.com.
- On the ‘Request Tab,’ SBI customers have the ‘e-fixed deposit’ tab. To initiate the RD account opening process, one has to click on the ‘e-RD/e-SBI Flexi Deposit link’.
- Select the ‘e-RD’ option and click on the ‘proceed’ button.
- In case an individual has multiple SBI accounts, they can choose the desired bank account for their recurring deposit amount. The money will get deducted from this account on a monthly basis. Fill the details such as monthly deposit amount and the tenure of the deposit.
- On clicking the ‘Submit’ button, the e-RD account opening is successful.
- Upon the maturity of the account, the amount is credited back to the investor’s SBI savings account chosen while opening the account.
What Are The Documents Required To Open An RD Account In SBI Bank?
While opening a recurring deposit account with SBI, the following are the list of documents required:
- Account opening form (completely filled and duly signed)
- Recent passport size photograph
- KYC Documents for Individual & Company: PAN Card, Passport Copy, Aadhar Card, Voter’s ID, and Driving License
- For HUFs, the KYC documents include HUF declaration deed, bank statement of HUF, and self-attested PAN card
- For Partnership Firms, KYC documents are Certificate of Incorporation, Partnership deed, and ID proofs of all authorized signatories.
- However, to invest in an RD, one has to meet the eligibility criteria.
Following is the eligibility criteria to invest in SBI Bank Recurring Deposit is:
- Resident Individuals
- NRIs and PIOs (Non-Resident Indians and Persons of Indian Origin)
- Sole proprietorship firms
- Trusts and companies
- Partnership Firms
- Public and Private Limited companies
Recurring Deposits guarantee returns. However, their returns are lower than other investment options that offer better returns than these and additionally also provide liquidity. One of the investment options are debt mutual funds. Debt mutual funds offer predictable returns along with liquidity.
Also read - Best Government Investment Schemes In India