Bank of Baroda FD calculator is available on Paisabazaar using which investors can get an estimate of the returns they’ll get on parking their money in the bank’s FD. The calculator requires deposit amount and tenure along with the applicable Bank of Baroda FD rates to calculate the maturity amount which includes the interest to be earned in the entire tenure.
How to Use Bank of Baroda FD Calculator?
Step 1: Go to Paisabazaar’s FD Calculator.
Step 2: Enter the amount to be deposited in the first blank space.
Step 3: Now enter the period of fixed deposit. (Also select years/months from the drop down list next to this field)
Step 4: Enter the BOB FD rate in the rate of interest blank. (Check the current Bank of Baroda FD interest rates below)
| Tenure | Bank of Baroda Fixed Deposit Interest Rates | |
| Regular Citizens | Senior Citizens | |
| 7 days to 14 days | 4.25% | 4.75% |
| 15 days to 45 days | 4.50% | 5.00% |
| 46 days to 90 days | 5.00% | 5.50% |
| 91 days to 180 days | 5.00% | 5.50% |
| 181 days to 270 days | 5.50% | 6.00% |
| 271 days & above and less than 1 year | 5.50% | 6.00% |
| 1 year | 5.90% | 6.40% |
| Above 1 year to 400 days | 6.00% | 6.50% |
| Above 400 days and up to 2 years | 5.90% | 6.40% |
| Above 2 years and up to 3 years | 5.90% | 6.40% |
| Above 3 years and up to 5 years | 6.15% | 6.65% |
| Above 5 years and up to 10 years | 5.90% | 6.40% |
Note – The Interest rates are applicable with effect from 10th February 2020 on deposits below Rs. 2 crore.
Step 6: Click on the ‘Calculate’ button.
In the table just below the tool, principal (deposit) amount, maturity amount and the interest amount will be displayed separately.
Please note that the calculator currently computes compound interest on monthly basis.
Compound Interest vs. Simple Interest
What is Compound Interest?
It is the interest earned on a fixed deposit (or any other investment) with the power of compounding. This basically means interest on interest. This leads to higher returns as the principal keeps on increasing with every cycle. Previous accrued interest in reinvested in the FD and then interest is calculated on this accumulated amount. This keeps on adding till the end of tenure.
What is Simple Interest?
As the name suggests, simple interest involves no complexities. The interest remains the same in every cycle. Deposit amount does not change for the entire tenure. Interest is not added to the principal amount.
Let us understand the difference between Simple Interest and Compound Interest using the following example:
Mr. Hasan wants to invest Rs. 10 lakh in an FD with Bank of Baroda for 6 years. The rate of interest is, let’s say, 10%. Check the difference in interest earned in the two scenarios of compound and simple interest.
If the interest is compounded:
A (amount) = A = P (1+r/n) ^ (n * t)
= 10, 00, 000 {(1+0.1/1)6}
Maturity Amount = Rs. 18, 17, 594
| Fixed Deposit Return Amount | ||
| Rs. 10,00,000 Principal Amount | Rs. 18,17,594 Maturity Amount | Rs. 8,17,594 Interest Amount |
If returns calculated on simple interest:
SI or Simple Interest = P x R x T
(Principal, Rate of Interest, Time or Tenure)
= 10, 00, 000 x 10 x 6
= Rs. 6, 00, 000
Maturity Amount = Rs. 16, 00, 000
| Fixed Deposit Return Amount | ||
| Rs. 10,00,000 Principal Amount | Rs. 16,00,000 Maturity Amount | Rs. 6,00,000 Interest Amount |
As seen here, there is a difference of Rs. 2, 17, 594 in the interest earned based on both the methods of compounding and simple interest.
Interest Payout vs. Reinvestment of Interest
While computing the interest, there is another thing to be considered and it is the payout frequency of the interest. There are two ways of interest payment.
The first one involves payment of interest as and when it gets accrued. The second option includes payment of interest on maturity where it is reinvested with the principal amount as and when it gets accrued. The former option is termed as immediate interest payout whereas the latter is interest reinvestment.
| Immediate Interest Payout | Interest Reinvestment |
| Interest credited to the account of the depositor as and when it accrues | Interest added to the principal amount |
| Accounts to a regular flow of income | No immediate addition to the income flow |
| Interest paid on monthly/quarterly/half-yearly/yearly basis | Interest paid on maturity |
| Maturity amount is a total of original deposit amount plus last interest accrued | Maturity amount is a lump sum of original deposit amount plus all interest accrued throughout the tenure of FD |
| Maturity amount is lower | Maturity amount is higher |
| E.g. FD of Rs. 1 lakh shall fetch monthly income of Rs. Rs. 833.33 and Rs. 2,500 per quarter Maturity Amount = Rs. 1,00,833.33 Total Interest earned = Rs. 10,000 | FD of Rs. 1 lakh shall fetch no monthly/quarterly income. Maturity Amount = Rs. 1,10,471 Total Interest earned = Rs. 10,471 |