IOB RD Calculator 2025

Benefits of IOB Recurring Deposit Calculator

There are several benefits to using the IOB RD calculator, such as:

1. It gives error-free calculations that help make better decisions
2. It is easily accessible from your mobile, tablet, laptop, or desktop
3. It is completely free to use
4. It is easy and intuitive to use
5. You get instant results
6. You can compare the interest rates between different maturity periods

  Factors that Influence IOB RD Interest and Maturity Amount

The rate of interest on your IOB RD is influenced by a variety of factors some of which are:

1. Deposit Maturity Period - The maturity period will determine how much your maturity amount will be as the interest rate is different from one tenure to another.

1. RBI Reverse Repo Rate - The Reserve Bank of India's reverse repo rate is the rate at which the RBI takes loans from commercial banks. This is directly linked with the RD interest rate.
2. Depositors Age - Anyone above the age of 60 is offered an additional interest rate of up to 0.50% on their deposits and those above the age of 80 earn 0.75% additional interest compared to the general public.

Calculation of Compound Interest on IOB Recurring Deposit (RD)

IOB recurring deposits will accumulate interest on a compounding basis every quarter. So, when you open an RD account on 1 May, the interest will compound on 1 August, 1 November, 1 February, and 1 May. This cycle repeats till the maturity period is over.

The formula for calculating the compounding interest is given below:

M = R x {(1 + n) x n - 1} / 1- (1 + i) (-1/3)

Where:

M = Maturity value

R = Deposit amount

n = Maturity period (in quarters)

i = Rate of interest divided by (4×100).

The IOB online calculator is based on this formula. So, using the calculator, you can find out how much you will earn in the scenario given below

If you open an IOB RD account with an initial deposit of Rs.2,000 for a period of 1 year at an interest rate of 5.30% p.a., your maturity amount at the end of 1 year will be Rs.24,700.

However, if you use the IOB RD online calculator instead, you will get an error-free calculation in no time at all compared to doing a manual calculation which could be inaccurate and could be more time-consuming.

IOB Recurring Deposit Interest Rates for General Public

The rate of interest for recurring deposits for Resident Indians for amounts up to Rs.2 crore per month is given in the table below:

Note: The interest rates mentioned in the table above are in effect from 15 July 2024. Rates are subject to change at the sole discretion of the bank.

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