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What is a RD calculator?

RD or recurring deposits are investment tools which are not only more flexible than fixed deposits but also help investors look for ways of investing money in the long term. 

Investors get the liberty of choosing the tenure of the deposit and also the minimum monthly payment they need to make. This helps them plan according to their finances and understanding. This makes RD schemes more flexible than FD schemes. They are the mode of investment preferred by people who are trying to save money for emergencies or sudden important expenditures. 

 

Calculating RD interest without a recurring deposit calculator

Interest on RD is compounded quarterly in most banks, making RD suitable for taking out loans.

The formula for RD calculation is- 

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

Here, 

M= Maturity Value

R= Monthly Installment

n= Number of quarters

I= Rate of interest/400

Thus, using the above formula, you can very well calculate the value of your recurring deposit upon maturity. This makes it one of the best means for taking out loans and saving up for a rainy day.

 

What is an RD calculator?

RD calculator is a digit tool used to calculate the returns on investing in RD and eliminates the need for a manual calculation. The tool helps investors save time and get accurate estimates, thus helping in planning their finances. Using this online tool is easy, and all one is required to do is input the monthly amount, interest rate, and tenure to know the RD interest

 

Benefits of RD

 

What are the tax benefits on RD?

Thus, RDs can be an excellent and better way of investing than FDs. They help not only save up for an emergency expenditure but also offer greater interests and returns. Moreover, the investor can decide when and how much to pay so that he can plan according to his pocket. 

 

FAQ

Can I break my RD prematurely?

Yes, you can do that, but your financial institution might charge you a penal fee.

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