Bsli Bachat Money Back Plan Calculator
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Reviewed by Calculator Editorial Team
The BSLI Bachat Money Back Plan is a financial product offered by Bank of Baroda that provides a guaranteed return on your investment. This calculator helps you estimate your potential returns based on your investment amount, tenure, and interest rate.
How the BSLI Bachat Money Back Plan Works
The BSLI Bachat Money Back Plan is a type of non-linked, non-participating, individual, savings life insurance plan. It offers:
- Guaranteed maturity benefits
- Regular income benefits during the policy term
- Tax benefits under Section 80C of the Income Tax Act
- Flexibility in choosing the investment amount and tenure
The plan provides a fixed return on your investment, which is calculated based on the sum assured, policy term, and interest rate. The policyholder receives regular income benefits during the policy term, and the sum assured is paid at the end of the term.
How to Use This Calculator
To use this calculator, follow these steps:
- Enter the investment amount in the "Investment Amount" field.
- Select the tenure of the plan from the dropdown menu.
- Enter the interest rate offered by the bank in the "Interest Rate" field.
- Click the "Calculate" button to see your estimated returns.
The calculator will display your estimated maturity value, total interest earned, and a chart showing the growth of your investment over time.
Formula and Assumptions
Formula
The maturity value (MV) of the BSLI Bachat Money Back Plan is calculated using the simple interest formula:
MV = P × (1 + r × t)
Where:
- P = Investment amount
- r = Annual interest rate (in decimal)
- t = Tenure in years
Assumptions
- The interest rate remains constant throughout the policy term.
- No additional contributions are made after the initial investment.
- The policy is not surrendered or lapsed before maturity.
Worked Example
Let's say you invest ₹50,000 in the BSLI Bachat Money Back Plan for 5 years at an annual interest rate of 7%.
Using the formula:
MV = 50,000 × (1 + 0.07 × 5) = 50,000 × 1.35 = ₹67,500
Your total interest earned would be ₹67,500 - ₹50,000 = ₹17,500.
| Year | Investment Amount | Interest Earned | Total Value |
|---|---|---|---|
| 0 | ₹50,000 | ₹0 | ₹50,000 |
| 1 | ₹50,000 | ₹3,500 | ₹53,500 |
| 2 | ₹50,000 | ₹3,500 | ₹57,000 |
| 3 | ₹50,000 | ₹3,500 | ₹60,500 |
| 4 | ₹50,000 | ₹3,500 | ₹64,000 |
| 5 | ₹50,000 | ₹3,500 | ₹67,500 |
Frequently Asked Questions
What is the minimum investment amount for the BSLI Bachat Money Back Plan?
The minimum investment amount for the BSLI Bachat Money Back Plan is typically ₹1,000. However, the exact minimum amount may vary depending on the bank's policies.
Can I withdraw money from the BSLI Bachat Money Back Plan before maturity?
Yes, you can withdraw money from the BSLI Bachat Money Back Plan before maturity, but it may result in a partial surrender value and a reduced maturity benefit.
Is the BSLI Bachat Money Back Plan taxable?
The maturity benefit of the BSLI Bachat Money Back Plan is taxable as per the prevailing tax laws. However, the policyholder can claim tax benefits under Section 80C of the Income Tax Act on the investment amount.