Recurring Deposit Calculator

Recurring Deposit (RD) accounts are a type of investment tool that lets investors set aside money on a regular monthly basis. Investors can select the deposit’s term and monthly payout amount based on their preferences. Recurring Deposit (RD) plans are frequently selected by those who wish to open an account to save money and create an emergency fund since they are more flexible than Fixed Deposit plans.

Recurring Deposit (RD) Calculator

Recurring Deposits (RD) are a type of savings option that assists with future planning. People can consistently save a small amount with monthly contributions for a defined period of time and earn interest on those deposits with an RD saving account. The lump sum amount and interest are returned after the RD deposit has reached maturity. As the interest rate is fixed for the duration of the RD, it is simple to calculate how much one can make by investing in them. Unlike other investment products, it does not fluctuate, making it an attractive savings scheme.

As with any other savings account, RD interest rates vary from bank to bank. For different time periods, interest rates in Indian banks range between 3.5-8.5%. The senior citizen’s RD account offers an interest rate marginally higher than the regular accounts. Most banks give senior citizens a 0.25%–0.75% higher rate.

Most banks also provide a flexible recurrent deposit account. According to his or her convenience, the investor in this can invest a flexible amount of money at regular intervals. The bank allows the depositor to choose a core amount that will serve as the basic investment for each interval. The investor may also invest in multiples of the core amount for each interval.

Features Of Repeating Deposit (RD)

RDs promote the habit of saving money on a regular basis.
The minimum amount to start an RD is very low. This may differ from one bank to another.
An individual can open a recurring deposit account for a minimum of 6 months and can go up to 10 years.
Generally, the interest rate on RDs is higher than that of a savings account. Additionally, senior citizens receive greater rates from RDs.
For RDs, premature withdrawals are not permitted. Banks do, however, sometimes permit premature withdrawals with a fee.
Overdraft or loan facilities are available against recurring deposits. Usually, the default payments on the loan are deducted from the available balance in the RD account.

How is RD interest calculated?

Interest on RD is compounded quarterly, in most banks. The formula for this is :

M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )

In this,

M = Maturity Value

R = Monthly Installment

n = Number of quarters

I = Rate of interest/400

How to Use The Kuvera’s RD Calculator?

Calculations for recurring deposits can be simplified by using a calculator. It is really simple to use, and the outcomes are extremely precise. Investors can save considerable time using it for computing maturity amounts from RDs and can also use this to compare multiple RDs. The exact maturity value from an investment in RD may be determined by using an RD calculator, which allows investor to manage their finances clearly. To utilise the RD maturity calculator, investors must complete the following steps.

Enter the monthly amount that investors wish to invest.
The next step is to insert the RD’s interest rate.
The final step is to enter the investment term in years. One can enter the tenure using the slider.

Now, the RD maturity calculator provides both mathematical and graphical representations of the initial investment, the wealth generated, and the total corpus generated.

Advantages of using an Online Recurring Deposits Calculator

Recurring Installments (RDs) are a type of investment product that calls for consistent monthly fixed deposits over a predetermined period of time in exchange for an interest rate. An investor receives a lump sum payment together with interest when an RD matures. A few of the benefits of using a Recurring Deposit Calculator are

Simple to use: Utilizing an RD calculator is quite simple. All that is required is the entry of values for the monthly deposit, the interest rate on investment, and the number of years of investing. The maturity amount is appropriately returned by the RD Calculator.
Time-saving: An investor can save time by using an RD calculator. In a matter of seconds, it completes complicated calculations. The investor no longer has to deal with the hassle of manual calculations.
Accuracy: If the inputs are given correctly, the calculator is extremely accurate and there is no chance of error.
Future Planning: Since the calculator provides an exact estimate of the return on investment, it helps investors plan their futures with accuracy.
Comparison: RDs are offered by various financial organisations and banks. Investors can quickly and easily compare the maturities of various RDs by using an RD calculator.
Free to use: The RD calculator can be used numerous times by the investor for free to estimate the returns from RDs with various tenure and interest rates.