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4 Reasons to Use a Recurring Deposit Calculator

02 Aug 2023

A recurring deposit, also known as RD, is one of the best investment options that you can choose right now. It allows you to invest a certain amount of money each month for a specific tenure. And upon maturity, you get your principal back along with interest. That said, before you go ahead with an RD, it is important to first use a recurring deposit calculator. Wondering why? Here are four important reasons why you should use one. 

1. You get to determine the maturity value of your investment 

Getting to know what the final amount that you get to enjoy on your investment upon maturity is extremely important. And a recurring deposit calculator can help you determine exactly that. 

All that you need to do is input the following values - the amount of monthly investment that you need to make, the rate of interest, and the tenure of the deposit. The calculator will automatically show the amount of money that you’re likely to receive upon maturity.

2. You can determine the interest component of your investment 

Just like how getting to know maturity is crucial, it is equally important to get to know what the interest component of your investment is. This will help you determine the rate of return from an RD and enable you to compare the results with other investment options. 

And considering the fact that the interest on an RD is compounded on a quarterly basis, calculating it manually may take time. However, using an RD interest calculator, you can speed up the process significantly. 

3. You can use it to help plan your investment better

A recurring deposit calculator can help you make a more informed investment decision. For instance, let’s say that you have a particular amount that you wish to get upon maturity in mind. In that case, you can simply use the calculator on a trial and error basis to help find out the amount of monthly investment that you need to make to achieve the maturity amount. 

4. It offers accurate and instantaneous results 

Another very important reason why you should use an RD interest calculator is that the results are always accurate no matter what. Although it is possible to calculate the interest or maturity portion of a recurring deposit manually, errors or mistakes may creep in inadvertently, which can lead to wrong results. 

However, with a dedicated RD calculator you can never go wrong. Also, the results are displayed almost instantaneously, which is not the case when you do it manually. 


As you can see, using an RD interest calculator can be highly beneficial in helping you plan your investment better. That said, if you’re looking for alternative investment options other than a recurring deposit, you can also consider investing in the stock market. However, to do so, you would first need to open a demat account. Get in touch with Motilal Oswal right away to open one in a completely online and paperless manner. 


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