Recurring Deposit (RD) Calculator

RD-CalculatorRecurring Deposit (RD) Calculator for calculating maturity amount of Recurring Deposit saving. Recurring Deposits are a special kind of Term Deposits offered by banks which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. This requires some data like – Your Monthly Deposit Amount, Rate of Interest of your bank, Period (in No. of Months), interest Compounding Frequency. After calculation you will get the Maturity Amount after maturity period and Effective yield in %.

Recurring Deposit (RD) account offers a monthly investment option with a handsome return at the end of specified years with option to extend the account period.

Monthly Deposit Amount :
Rate of Interest :
Period (in No. of Months) :
(fractions not allowed)
Frequency of Compounding :
Maturity Amount of RD (Rs.) :
Effective yield : %  

Note: The more frequent the interest is compounded, the higher the return or the future worth of your savings will be; For instance, the future value of savings with interest compounded at Monthly frequency (i.e., 12 times a year) will be higher than the same with interest compounded at quarterly (4 times a year) interval, which in turn is better than semi annual (twice a year) compounding.

Recurring Deposit (RD)

Recurring Deposits are a special kind of Term Deposits offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. It is similar to making FDs of a certain amount in monthly installments. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time.

Benefits of RD:

  • Customers can avail loans against RDs up to 80 to 90 per cent of the value of deposits. The rate of interest on the loan could be 1 to 2 per cent over the rate offered on the deposit.
  • Flexibility in period of term deposit
  • Non resident Indian’s and Person of Indian Origin can also open these accounts.
  • Customers can avail Premature Withdrawal.
  • Tax Deducted At Source ( TDS ) is not applicable on RDs.
  • Recurring Deposit schemes allow customers with an opportunity to attain financial goals through regular monthly small deposits.

FAQ:



Who is eligible to apply for a RD account?

Any individual or Hindu Undivided Families is eligible to apply for the account.

How do I apply for an RD account?

You can get a bank RD at any bank. You have to open an RD account with the bank to make the deposit by just some bank formalities and fulfill the KYC norms.


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