Recurring Deposit (RD) Calculator is a financial tool for calculating the maturity amount of Recurring Deposit invested in any Bank for a specified period.
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 RD Calculator 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 the 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 an option to extend the accounting period.
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 percent of the value of deposits. The rate of interest on the loan could be 1 to 2 percent over the rate offered on the deposit.
- Flexibility in the period of term deposit
- Non-resident Indian’s and Persons of Indian Origin can also open these accounts.
- Customers can avail of Premature Withdrawal.
- Tax Deducted At Source ( TDS ) is not applicable to RDs.
- Recurring Deposit schemes allow customers with an opportunity to attain financial goals through regular monthly small deposits.
Bank RD Calculator Variables:
This recurring deposit (RD) calculator for any Bank 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 bank FD 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 Online RD Calculator Works?
Anyone can calculate his saving returns from the RD account through an online 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 an RD calculator, one will get the final maturity amount for investment query with effective yield.
FAQ:
Who is eligible to apply for an 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.
(Calculate your Bank Recurring Deposit (RD) maturity amount by using this Online RD Calculator)