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Recurring DEPOSIT Calculator
Calculate Your RECURRING DEPOSIT Returns
Use TimesMoney's Free Recurring Deposit Calculator to calculate your Recurring Deposit Returns
₹ 100
₹ 99,99,999
3 months
120 months
1%
30%
Investment Details
Total Amount: ₹
Total Interest: ₹
Maturity Amount : ₹
RD Calculator is used to determine the amount of money you will receive once your RD matures. You can use the RD Calculator offered by several banks or a simple recurring deposit formula to determine the amount. Using the RD Calculator can help you get the results immediately and the process is hassle-free. The interest that is generated from an RD account is compounded quarterly.
There are several RD calculators available online; one must choose an accurate RD calculator and learn its usage to calculate the exact RD amount they are liable to pay for a loan.
Recurrig Deposit Calculator
A Recurring Deposit Calculator is an online tool that helps you estimate the returns on your recurring deposit investments. By entering the monthly deposit amount, interest rate, and tenure, the calculator provides an accurate projection of the maturity amount and interest earned at the end of the investment period. This tool helps you plan your savings systematically by showing how your regular deposits will grow over time. It simplifies the process of choosing the right recurring deposit plan, ensuring that your investment aligns with your financial goals and provides optimal returns.
How can a recurring deposit calculator help you?
A Recurring Deposit Calculator can help you plan and track your recurring deposit investments by providing a clear estimate of the returns you can expect. By entering details such as the monthly deposit amount, interest rate, and tenure, the calculator gives you an accurate projection of the maturity amount and the interest you will earn. This tool allows you to experiment with different deposit amounts and tenures to find the best option that suits your financial goals. It ensures you make informed decisions, helping you maximize your savings and achieve your investment objectives efficiently.
A recurring deposit calculator online is a beneficial tool, which shows the estimated returns you will earn after the investment tenure.
How do Recurring Deposit calculators work?
There is a specific formula that Timesmoney uses to compute the maturity amount.
M = ( monthlyInstallment x Numerator) / ( 1 - (1 + rate)^(-1/3) ) where
duration is the number of months
P is the amount invested per month
rate is the interest/400
Numerator = (1 + rate)^4 - 1
This is the standardized formula used by any online Recurring Deposit calculator.
FAQs
An RD calculator is a quick and easy tool that helps you calculate the maturity amount and returns in seconds. It saves time by eliminating manual calculations and allows you to compare different recurring deposit plans to make informed investment decisions.
You can open an RD account by visiting the bank branch, using mobile banking, or through internet banking. Many banks also offer the option to open an RD account online via their official website or app.
RD returns are calculated using compound interest with quarterly compounding, which makes the calculation process complex. An RD calculator simplifies this by providing accurate results based on the amount, tenure, and interest rate, saving you from the complexity of manual calculations.
A Recurring Deposit requires monthly deposits, encouraging regular savings, while a Fixed Deposit involves a lump sum deposit for a fixed tenure. RDs are ideal for people who want to build savings through small, regular contributions, while FDs are for those who have a lump sum amount to invest.
The interest on an RD account is calculated using compound interest. Although the deposits are made monthly, the interest is compounded quarterly, which means it is calculated every three months on the outstanding balance.
You can use the RD calculator as many times as you need. It allows you to calculate the returns for different amounts, tenures, and interest rates to help you make the best decision for your investment.
If you miss a monthly installment, a penalty may be charged, and depending on the bank’s policy, your RD account may be deactivated or closed after a certain number of missed payments. It’s important to ensure timely deposits to avoid penalties.
Simple interest is applied to recurring deposits for the months that fall within a financial quarter, starting from the date of deposit. After the first quarter, compound interest is applied, which is calculated quarterly.
Moderate inflation does not significantly affect RD interest rates. However, high inflation can lead to a decrease in interest rates offered by banks as they adjust their rates to remain competitive and sustainable.
Yes, the interest earned on a Recurring Deposit is taxable according to the Income Tax Act. The interest is added to your total income and taxed at the applicable rate based on your income slab.
Yes, many banks offer an additional interest rate for senior citizens, usually 0.25% to 0.5% higher than the regular interest rate. This benefit helps senior citizens maximize their returns on fixed investments.
Yes, the interest on Recurring Deposits is compounded quarterly, which means that interest is calculated every three months and added to the principal amount for the next calculation period.
If you miss a single installment, most banks allow you to continue the RD account, but you may incur a penalty. If multiple installments are missed, the bank may close the account, or you may be required to pay penalties or interest at a lower rate.
Yes, you can add a nominee to your RD account. This ensures that the maturity amount is transferred to the nominee in case of the account holder's unfortunate demise.
Most banks do not allow premature withdrawals from RD accounts, but some may permit it with penalties. The interest earned on the prematurely withdrawn amount will be lower than the original agreed rate, and you may incur additional charges.
The minimum tenure for a Recurring Deposit is typically 6 months, and the maximum tenure can range from 10 to 15 years, depending on the bank. Longer tenures often offer higher interest rates.
No, once the RD account is opened, the monthly deposit amount cannot be changed. However, you can open a new RD account with a different deposit amount or modify the tenure if allowed by the bank.