Recurring Deposit Calculator
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How can a Recurring Deposit Calculator help you?
Grow your investments, one-step at a time with RD Calculator
Allows you to save money on a regular basis
Minimum deposits at better rate of returns
Flexible tenure for your investments
Use the RD calculator above to know about the compound interest earned on your principal investment for your desired tenure.
1. What is a recurring deposit calculator?
A recurring deposit calculator is an online tool that you can use to plan your RD investments. In a recurring deposit, you invest a fixed sum each month, for a specified investment tenure. Over the course of the investment period, the amounts you deposit continue to earn interest at a predetermined fixed rate. At the end of the investment tenure, the maturity amount you receive includes the principal deposited periodically as well as the interest earned thereon.
An RD calculator shows you the profit you will earn on your recurring deposit, as well as the total amount you will receive at maturity. To get these details, all you need to do is enter the following parameters in the online tool-
- Your monthly investment amount
- The expected rate of return
- The investment period
Once you enter the details listed above, the RD calculator will give you insights into how your investment will grow. These details will help you plan your RD in a more informed manner.
2. How to calculate the recurring deposit (RD) maturity amount?
The best way to calculate the maturity amount for your recurring deposit is by using an RD calculator. This online tool makes use of the following formula to arrive at the maturity amount.
Maturity amount = P (1 + r/n)nt
Here, the variables denoted by the letters are as follows:
- P is the principal amount deposited each month
- R is the rate of interest
- n is the frequency or the number times the interest is compounded annually
- t is the overall tenure of the recurring deposit
This formula needs to be applied individually to each installment deposited in the RD, since the tenure of each installment differs. For instance, in the case of a 1-year recurring deposit, the first installment will be deposited for a period of 12 months, the second installment for a period of 11 months, the third for a period of 10 months, and so on.
As you may have guessed, this can get quite tedious and challenging to compute manually, especially for RDs with a longer tenure. So, it is best to use a recurring deposit calculator to compute the RD maturity amount in an instant.
3. What are the advantages of using an RD maturity calculator?
sing a recurring deposit calculator has several advantages. If you are planning to invest in a recurring deposit, an RD calculator can benefit you in the following ways.
• It helps save timeManually calculating the maturity amount and the returns from a recurring deposit can take you a while.But an RD calculator saves you a lot of time.You can get the results from your inputs in an instant, making it extremely easy to plan your RD investments accurately.
• It gives you accurate resultsManual calculations are also prone to human error.Computational mistakes can lead to misguided investment decisions.Here’s where an RD calculator proves to be beneficial.The online calculator gives you accurate results based on the inputs you provide.
• It is free of cost and offers unlimited usageAbove all, a recurring deposit calculator is also free to use.You need not pay anything to make use of this online tool, and you can use it as many times as you need to.This makes it easy to change the inputs and compare RD offerings from different banks.
4. What is the minimum monthly installment amount needed to invest in a bank RD?
The minimum amount needed to start a recurring deposit varies from one bank or financial institution to another.Broadly speaking, however, you can start a bank RD with an amount as low as Rs. 500.
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Recurring Deposit Calculator FAQs
1. How can an RD calculator help you?
A recurring deposit, as the name indicates, is an investment you make repeatedly over a specified tenure. So, the returns on the amounts deposited accrue on a continuous basis. Calculating these returns manually can be challenging and prone to errors. Here’s where a recurring deposit calculator can help.
This nifty online tool takes into account different parameters like the amount of monthly investment you plan to make, the rate of interest thereon and the tenure of the RD. Using these details, the RD calculator gives you insights into the profit you will earn on your total investments and the total maturity value of your RD. This makes investment planning much easier.
An RD calculator can also help you in many other ways, some of which are listed below.
• It gives you accurate results about the maturity amount of your recurring deposit.
• It facilitates more informed financial planning for your future goals.
• It allows you to compare recurring deposit facilities offered by different banks.
2. What is the range of investment tenure for an RD?
The minimum and the maximum investment tenure for a recurring deposit depends on the bank or the financial institution that you choose to open an RD with.Typically, the tenure ranges from 6 months to 10 years.
3. What is the minimum amount to start an RD?
There is no minimum amount to start an RD.You can start with as low as Rs 500 per month for a designated period of time convenient to you.
4. Is TDS applicable on RD ?
Effective from June 1, 2015; TDS has been made mandatory for all recurring deposits.The TDS would be applicable only on the interest acquired on the deposit.
5. Can I withdraw my RD amount prematurely ?
Yes, RDs can be withdrawn prematurely.Interest shall be paid until the day of closing.However, depending on your financial institution, there wil be certain penalty or exit fee applicable.
