RD Calculator | Recurring Deposit Interest & Maturity Calculator India
Your Recurring Deposit Returns
Total Investment
₹0
Total Interest
₹0
Maturity Amount
₹0
Effective Annual Yield
0%
Monthly Deposit Breakdown
| Month | Deposit Amount | Interest Earned | Balance |
|---|
What is RD Calculator | Recurring Deposit Interest & Maturity Calculator India?
A Recurring Deposit (RD) Calculator is a financial tool that helps you calculate the maturity amount and interest earned on your recurring deposits. It takes into account factors such as:
- Monthly Deposit Amount: The fixed amount you deposit each month
- Interest Rate: The annual interest rate offered by the bank
- Tenure: The duration of your RD account in years
- Compounding Frequency: How often the interest is compounded (usually quarterly for RDs)
The RD calculator uses the following formula to calculate the maturity amount:
M = P × n × (1 + r/q)^(n×t)
Where:
- M = Maturity Amount
- P = Monthly Deposit Amount
- n = Number of deposits per year (12 for monthly deposits)
- r = Annual Interest Rate (in decimal)
- q = Number of times interest is compounded per year
- t = Tenure in years
This calculator helps you:
- Plan your savings goals effectively
- Compare different RD schemes
- Understand the power of compound interest
- Make informed investment decisions
Examples
Example 1: Short-term Education Fund
Inputs:
- Monthly Deposit: ₹5,000
- Tenure: 2 years
- Interest Rate: 6.5% p.a.
- Compounding: Quarterly
Results:
- Total Investment: ₹1,20,000
- Interest Earned: ₹8,127
- Maturity Amount: ₹1,28,127
This example shows how you can save for short-term educational goals like professional certifications or skill development courses.
Example 2: Wedding Planning
Inputs:
- Monthly Deposit: ₹10,000
- Tenure: 5 years
- Interest Rate: 7% p.a.
- Compounding: Quarterly
Results:
- Total Investment: ₹6,00,000
- Interest Earned: ₹1,16,892
- Maturity Amount: ₹7,16,892
A practical example of saving for a wedding fund with regular monthly deposits over a medium-term period.
Example 3: Emergency Fund
Inputs:
- Monthly Deposit: ₹3,000
- Tenure: 3 years
- Interest Rate: 6% p.a.
- Compounding: Quarterly
Results:
- Total Investment: ₹1,08,000
- Interest Earned: ₹10,404
- Maturity Amount: ₹1,18,404
Building an emergency fund through RD ensures you have a safety net while earning better returns than a savings account.
All Calculators
Post a Job in Your Location
Hire Top Professionals
How to Use RD Calculator | Recurring Deposit Interest & Maturity Calculator India
Enter Monthly Deposit Amount
Input the amount you plan to deposit each month in your RD account. This should be an amount you can comfortably save regularly.
Choose an amount that aligns with your monthly income and expenses to ensure consistent deposits.
Select Investment Period
Choose the duration for which you want to invest. RD tenures typically range from 6 months to 10 years.
Longer tenures generally offer better interest rates and higher returns.
Input Interest Rate
Enter the annual interest rate offered by your bank. This is usually displayed as a percentage (%).
Compare interest rates from different banks to get the best returns on your investment.
Review Results
The calculator will display:
- Total amount invested
- Interest earned
- Maturity amount
- Effective annual return
Additional Tips
- Consider setting up auto-debit to ensure timely deposits
- Keep track of interest rate changes that might affect your returns
- Plan your RD maturity date to align with your financial goals
- Consider tax implications on the interest earned
Advantages of RD Calculator | Recurring Deposit Interest & Maturity Calculator India
-
Disciplined Savings
RDs encourage regular monthly savings, helping you build a disciplined savings habit.
-
Guaranteed Returns
Fixed interest rates provide assured returns on your investments, making financial planning easier.
-
Flexible Tenure
Choose investment duration from 6 months to 10 years based on your financial goals.
-
Low Risk Investment
RDs are one of the safest investment options, backed by bank guarantees.
-
Regular Income Option
Interest can be credited to your savings account periodically, providing regular income.
-
Loan Facility
Many banks offer loan facilities against RD accounts, providing financial security.
Frequently Asked Questions
What is an RD Calculator?
An RD Calculator is a financial tool that helps you estimate the returns on your Recurring Deposit. It takes into account your monthly investment amount, interest rate, and tenure to calculate the maturity amount and interest earned.
How does the RD Calculator work?
The RD Calculator uses a formula that considers your monthly deposit amount, the interest rate offered by the bank, and the investment tenure to calculate the maturity value. The interest is typically compounded quarterly in RDs.
What is the difference between RD and FD?
In a Fixed Deposit (FD), you invest a lump sum amount once, while in a Recurring Deposit (RD), you invest a fixed amount monthly throughout the tenure. RDs are suitable for building a corpus through regular savings, while FDs are ideal for one-time investments.
What happens if I miss an RD installment?
If you miss an RD installment, banks typically charge a penalty for each missed payment. The penalty amount varies from bank to bank, usually ranging from ₹1 to ₹2 per ₹100 per month of delay.
What are the tax implications on RD interest?
Interest earned on Recurring Deposits is taxable as per your income tax slab rate. If the interest earned in a financial year exceeds ₹40,000 (₹50,000 for senior citizens), the bank will deduct TDS at 10% (if PAN is provided) or 20% (if PAN is not provided).