Plan your finances wisely with our recurring deposit calculator
A recurring deposit (RD) is a kind of investment plan offered by banks and financial institutions that enables individuals to save a fixed amount of money regularly, usually monthly, for a predetermined time.
The interest rate offered on an RD is generally higher than what is offered on a savings account, making it an attractive option for those who wish to earn a higher return on their savings. At the end of the RD term, the total amount invested along with the interest earned is returned to the investor. Recurring deposit schemes are popular among salaried individuals and those who have a regular source of income as they offer a convenient and disciplined way of saving and earning interest on their money.
The returns on recurring deposits (RDs) are calculated using a formula that takes into account several variables. The interest rate offered by the bank or financial institution is a critical factor that determines the returns on the investment. The interest is usually compounded quarterly, which means that the interest earned is added to the principal amount, and subsequent interest is calculated on the new sum.
The duration of the RD also plays a crucial role in determining the returns. The longer the investment period, the higher the returns. The amount invested at regular intervals is also a vital factor in calculating the returns. Our online RD calculator is available online that can help investors determine the exact returns on their investments. The calculator takes into account the interest rate, duration of the RD, and the amount invested at regular intervals to provide investors with an accurate estimate of their returns.
The formula for RD maturity amount is:
A = P * [(1 + R/(100))^N - 1] / (1 - (1 + R/(4100))^(-1/3))
A= The maturity amount
P= Monthly installment
N= Number of Quarters
R= Rate of interest
Here are the benefits of an RD calculator in bullet points: