Recurring deposit calculator
Recurring Deposit Calculator – A Smart Approach to Tackle The Rounds of Savings
What is a Recurring Deposit (RD)?
A Recurring Deposit also known as RD is a sort of fixed contribution which allows people to make a regular monthly investment over a fixed period ranging from six months to a decade. At the end of the term, the principal and accrued interest is paid out. If you are someone who seeks to invest money in a systematic manner over time, then this is the most useful savings strategy for you.
Features of Recurring Deposit
- Fixed Monthly Investment: Make regular monthly contributions without failure.
- Guaranteed Returns: Earn interest rates that were agreed upon regardless of market fluctuations.
- Flexible Tenure: A fixed period that best matches your investment objectives.
- Loan Against RD: Get funds up to 90% of the current RD balance for emergency purposes.
How Does the Recurring Deposit Calculator Work?
At Calculator3.com, use the recurring deposit calculator and the calculation is really easy. Here’s what you can do – To input the amount to be deposited monthly in the RD account. Here is where the magic happens, Interest and maturity value will automatically be calculated – all you need to do is set the duration of the deposit, which can be anywhere between 6 months and 10 years.
Setting the Interest Rate:
Feed in the rate of interest as offered by your banking institution for your RD.
Hit Calculate:
Click the ‘Calculate’ button to obtain an immediate response. You will notice the comprehensive sum that shows the total maturity amount with principal sum and interest.
Why Use the Recurring Deposit Calculator?
- Efficient Saving Schemes: With the help of the calculator, you can determine and track how much you will accumulate over a given time period based on your monthly contributions and interest rate.
- No Guess Work: With the calculator, you are assured of accuracy with the estimate of RD’s maturity value, and how much interest you expect to gain, and eliminates all forms of guess work.
- Test Differing Scenarios: You can try out combinations of different deposit amounts, tenures, and interest rates to figure out what is most effective in helping you achieve your financial goals.
- Work Smarter: You do not have to calculate your compound interest and maturity values manually. The calculator works out all these for you within seconds, saving you from the heavy workload.
Questions That Are Most Commonly Asked (FAQs)
1. What is the method for calculating recurrent deposit value at maturity?
The method for determining maturity value for a Recurring Deposit is given:
P = Monthly Deposit (Also called the Fixed Deposit for Deposits in Savings Plans)
n = Number of Quarters in the Term
Where:
The method for calculating maturity value for Recurring Deposit is:
M = P × 4r (1 + 4r ) ^ (4n – 1)/4 × (1 + 4r)
M = Maturity Value r = Annual Interest Rate
2. In the case of a recurring deposit scheme, what is the method of interest calculation?
A portion of the recurring deposit is added once every month, and on the whole deposit interest is computed on a quarterly compounded basis. Monthly contributions, interest rate and duration impact how much interest will also be owed. Interest earned accrues to the principal, and at the end of the lock-in period, the total maturity amount is disbursed.
3. Is it possible to withdraw from my recurring deposit account prior to maturity?
Most banks permit premature withdrawal of the RD but conditions like penalties or lower interest are applied to early withdrawals.
4. What is the method of usage of the Recurring Deposit calculator?
To know the maturity value, principal, and interest of repayment at maturity, just enter your monthly deposit, tenure, and interest into the Recurring Deposit Calculator, then click on Calculate.
5. Are there any charges on use of the Recurring Deposit calculator?
The website Calculator3.com has provided the service for free, with the Recurring Deposit Calculator available for unrestricted use at any time.