Recurring Deposit (RD) Calculator

As the name implies, recurring deposits (or RD accounts) allow you to make incremental deposits and earn a risk-free return at the end. Seriously, if your goal is to save money for a house, consider a biweekly loan. This mortgage schedule allows you to pay little by little and help you reach your goal quicker.

A recurring deposit (RD), is a long-term investment in which you can make regular savings and earn a fixed rate of interest over the period. The deposits are monthly and interest compounds every quarter. Earning individuals can enjoy a fixed interest rate on savings with a recurring deposit account. This is similar to the fixed deposit (FD) investment. A recurring deposit offers flexibility over FD investments because you have the ability to choose how many deposits you would like to make as well as the minimum monthly amount.

You can automate your monthly savings account payments by issuing a standing or automated payment. You can also deposit more money than you have set up in your account at any time. You can save more money and get more returns on your investment at your own speed.

Due to its flexibility, interest rates are very competitive. The term of the RD and the market trends can affect the interest rates. They can range from 5% to 8%. The interest rate will be higher if the term is longer.

To receive the full benefit of compounding interests, you need to make your monthly payments on time. You will lose the initial maturity value if any payments are missed or delayed by the bank.

If you are looking for the best deal on a recurring deposit account then make sure you choose a bank:

The monthly income scheme is another safe investment option that can provide steady income.

Once you know what RD is, the RD calculator makes it easy to use. It requires only three parameters and can be used in very short steps.

Benefits:

RD is a great investment vehicle because of the following:

Limitations:

A recurring deposit allows you to invest small amounts each month at a fixed term and interest rate, while a fixed deposit account lets you invest a lump amount at the same fixed interest rate.

Calculating RD interest involves first finding the simple interest in the monthly RD deposits and then adding all accrued interest at the end.