Post Office RD Calculator

Post Office Recurring Deposit (RD) Calculator is a financial tool for calculating the maturity amount of Recurring Deposit invested in any Post Office for a specified period.

Monthly Deposit Amount in RD	:
Rate of Interest	:
Period (in Months)	:	(fractions not allowed)
Frequency of Compounding	:	SelectMonthlyQuarterlyHalfYearlyAnnual
Maturity Amount (Rs.)	:
Invested Amount (Rs)	:
Wealth Gain (Rs)	:
Effective Yield in %	:

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.

Post Office Recurring Deposit (RD) Calculator for calculating maturity amount of Post Office Recurring Deposit saving. Recurring Deposits are a special kind of Term Deposits offered by Post Office, which helps 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 Post Office Recurring Deposit (RD) Calculator requires some data like – Your Monthly Deposit Amount, Rate of Interest of Post Office (i.e. currently 8.4%), Period (i.e. 60 Months), interest Compounding Frequency (i.e. Quarterly). After calculation, you will get the Maturity Amount after the maturity period and Effective yield in %.

The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Post Office Recurring Deposit (RD)

Post office Recurring Deposit account is a systematic way of saving money. The scheme is meant for those investors who want to deposit a fixed amount regularly on monthly basis in order to get a tidy sum after a definite time on the maturity of the account. 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.

Maturity:
Period of maturity of Post office Recurring Deposit account is 5 years. Sixty equal monthly deposits shall be made in an account in multiples of Rs. five subject to a minimum of ten rupees. If it is a joint account, it is paid on maturity
a) jointly or survivor
b) to either of them or survivor

Premature Closure:
Premature closure of Post office Recurring Deposit accounts is permissible after the expiry of three years. In case of premature closure of the account, the interest at the rate applicable to the post office savings account shall be payable.

Extension and Retention of Account:
Post maturity, Post office Recurring Deposit account holders could decide to continue to account for a further period of five years and make monthly deposits during such an extended period. The depositors could also decide to continue the account and retain in it the amount of repayment due for a further period up to a maximum of five years without making any fresh deposits.

Who Can Invest in Post office Recurring Deposit (RD):

• Any adult
• Two adults jointly
• A guardian on behalf of a minor or a person of unsound mind.
• A minor who is a minimum of ten years can open a Post office Recurring Deposit Account.

Salient Features of Post office Recurring Deposit (RD):

• Any individual (a single adult or two adults jointly) can open a Post office Recurring Deposit account.
• Advance Deposits earn the rebate.
• Four defaults are allowed.
• Rate of interest is 8.40% on Post office Recurring Deposit
• The maturity value of a 5 Years RD account opened on or after 1.4.2012 with monthly deposit of INR.10/- shall be INR.746.51.
• Defaults can be paid within two months.
• Part withdrawal facility available in Post office Recurring Deposit account.
• Premature closure allowed after three years.
• Pay Roll Savings Scheme is also available for employees of various Establishments.
• Minimum Deposit: INR. 10/- and in multiples of INR. 5/- thereafter
• Maximum Deposit: No Limit is defined for Post office Recurring Deposit.

Post Office RD Calculator Variables:

This recurring deposit (RD) calculator for the post office RD uses seven different investment variables that most of the online calculator requires. These calculator variables are:

Monthly Deposit Amount: This is a fixed monthly amount that is invested in an RD scheme. This deposit amount varies from person to person and scheme to scheme.

Rate of Interest: The Rate of Interest is the variable of the RD calculator that appears as a percentage and is different for different types of saving options.

Period of Investment: The length of the investment or period for the investment in months is another factor that plays a major role in the RD calculator. The longer investment increases the compounding of the returns and hence greater rewards are generated.

Frequency of compounding: The frequency of compounding may be monthly, quarterly, half-yearly, or yearly.

Maturity Amount: The desired or required amount that an investor wants at the end of the investment life cycle is known as the final amount or maturity amount.

Invested Amount: It is the amount that has been invested in the fixed deposit scheme at the time of opening of the fixed deposit.

Wealth Gain: It is the final gain amount over the invested amount in the post office RD scheme.

Effective yield: The effective yield is that variable of the RD calculator that appears as a percentage and is used to compare the effectiveness of different types of saving options. This saving variable matters the most to the investors.

How does Online Post Office RD Calculator work?

Anyone can calculate his saving returns from the RD account through an online post office RD calculator available on this page with high accuracy.

Following are the steps to calculate the RD returns through this calculator:

• Step 1: Enter the fixed monthly amount that he wants to deposit every month.
• Step 2: After this, fill the rate of interest that he gets from his bank or financial institution for the specified period. Different banks or financial institutions offer different rates of interest-based on the amount of investment and period of investment.
• Step 3: The next step that one has to follow is to select the period for saving in months. It depends on saving option requirement for which he wants to stay invested.
• Step 4: Thereafter choose the frequency of compounding. The frequency of compounding may be monthly, quarterly, half-yearly, or yearly.
• Step 5: After submitting all variables required by a Post Office RD calculator, one will get the final maturity amount for investment query with effective yield.