RD Calculator

Monthly Investment

₹500
₹10,00,000

Rate of interest (p.a)

%
1 %
15%

Time Period

1
10

RD Calculator – An Overview

Recurring Deposits (RD) are a type of savings option that aids with future planning. People can consistently save a little amount with monthly contributions for a defined length of time and receive interest on those deposits with an RD saving account.

The lump payment and interest are returned after the RD deposit has reached maturity. Since the interest rate is fixed throughout the duration of the RD, calculating the potential earnings from investing in one is simple. It remains constant, in contrast to certain investment products, making it a desirable savings plan.

RD Calculator

The amount of money you will get when your RD matures may be calculated using the RD Calculator. To calculate the amount, you can use a straightforward formula or the RD Calculator provided by a number of banks. You may receive the answers right away and the procedure is simple by using the RD Calculator. The interest earned from an RD account is compounded four times each year.

The formula for calculating the amount when a recurring deposit matures is:

M =R[(1+i) n - 1]/1-(1+i) (-1/3)

In which:

M = RD Maturity value

R = Monthly installment deposited in the RD account

n = Tenure (in quarters)

i = Rate of Interest / 400

RD Calculator (FAQs)

Most people invest in RD to get a fixed return on maturity. Other than this, there are several benefits of using a RD calculator.

  • RD is a straightforward investment product, making it easier for novice investors to comprehend. One can develop a regular saving and investing habit by investing in RDs.
  • Short, medium, or long-term investments can be made with RDs. The minimum tenure ranges from six months to five years. Additionally, for some institutions, the minimum investment amount is often Rs. 10. However, it often costs Rs 100 for public sector banks and Rs 500 to Rs 1000 for private sector banks.
  • The RDs are quite liquid. You may take money out of an RD account whenever you choose, but the bank will charge you a modest fee for doing so.
  • You can borrow money against your RD account and receive a loan equal to 80–90% of the deposit's value. RDs offer a flexible option that allows users to invest different amounts as needed.

  • Recurring Installments (RDs) are a type of investment product that asks for steady monthly fixed deposits over a certain period of time in exchange for an interest rate. An investor receives a lump sum payment together with interest when an RD matures.
  • They resemble fixed deposits but include more frequent investment. RDs foster the habit of monthly saves and financial discipline among investors, just like recurring fixed deposits do.
  • Since fixed deposit rates vary from bank to bank, the same is true with RD interest rates. The interest rate for older folks is often greater than for normal RDs. Quarterly compounding is used for interest. An RD requires a minimum investment of INR 10, however this might differ from bank to bank. Ten years is the maximum term; the least is six months.
  • Premature withdrawals are permitted but come with a cost. In order to get 80–90% of the RD value, investors can additionally borrow money against an RD (such as a company loan or a housing loan). The process of calculating interest on repeated deposits can be laborious and time-consuming.

Yes, the majority of banks provide older folks a special interest rate.

Although recurring deposits are a secure investment choice with a mostly assured return on investment, it is advisable to take the following aspects into account before opening an account for recurring deposits.

Interest Rates Offered: Banks provide a variety of interest rates for various term lengths. Various banks often provide recurring account holders an interest rate that runs from 3.5% to 8.5% p.a. The chosen deposit tenure affects the return rates. The rates on medium-term deposits are often the highest. Long-term deposits often have somewhat lower interest rates since the depositor will make a larger profit altogether.

  • A tenure of between six months and a year is referred to as short-term.
  • Medium-Term Tenure: A tenure of between one year and five years.
  • Long-Term Tenure: A tenure of five or more years or longer.
  • Term Length: There are three types of recurring deposit term periods:

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