# RD Calculator

# RD Calculator

RD stands for Recurring Deposit, which is a type of savings scheme offered by banks and post offices in India. In an RD account, a fixed amount of money is deposited at regular intervals (usually monthly) for a fixed period of time, and interest is earned on the accumulated amount.

**To calculate the maturity value of an RD account, you can use the following formula:**

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

Where:

**M: Maturity value of the RD account**

**R: Monthly deposit amount**

**i: Rate of interest per annum (expressed as a decimal)**

**n: Number of quarters (i.e. 3-month periods) for which the RD account is held**

Here is an example of how to use this formula:

Suppose you invest Rs. 5,000 per month in an RD account for 3 years at an interest rate of 6% per annum. Here’s how you can calculate the maturity value of your RD account:

**i = 6% per annum = 0.06/4 per quarter (quarterly interest rate)**

**n = 3 years x 4 quarters per year = 12 quarters**

**M = 5,000 x [(1 + 0.06/4)^12 – 1]/(1 – (1 + 0.06/4)^(-1/3))**

**M = Rs. 1,92,427.06**

Therefore, the maturity value of your RD account after 3 years of investment would be Rs. 1,92,427.06.

## RD

RD stands for Recurring Deposit, which is a type of savings scheme offered by banks and post offices in India. In an RD account, a fixed amount of money is deposited at regular intervals (usually monthly) for a fixed period of time, and interest is earned on the accumulated amount.

The minimum deposit amount for an RD account varies depending on the bank or post office. The tenure of an RD account usually ranges from 6 months to 10 years. The interest rate offered on an RD account also varies depending on the bank or post office, and can range from around 4% to 7% per annum.

At the end of the RD tenure, the total amount deposited along with the interest earned is paid out to the account holder. It is important to note that premature withdrawal of an RD account usually incurs a penalty fee, and the interest rate may also be revised downwards.

RD accounts are a good option for those who want to save a fixed amount of money every month and earn a fixed rate of interest. It is also a good way to build a habit of regular savings. However, the interest rates on RD accounts are generally lower than other investment options such as mutual funds or stocks, and the returns may not keep up with inflation.