What is an RD (Recurring Deposit)?
A Recurring Deposit (RD) is a savings scheme offered by banks and post offices in India. It allows you to deposit a fixed amount every month for a fixed period, earning interest on your investments. Use this One For All Financial Calculator tool to quickly calculate the return.
RD Calculation Formula:
The formula for calculating the maturity value of an RD is:
M = R * [(1 + i/n)^(nt) - 1] / (1-(1+i/n)^(-1/3))
Where:
- M = Maturity Value
- R = Monthly Installment
- i = Rate of interest per annum/400
- n = Number of quarters
- t = Investment Period in years
How to Use This RD Calculator:
- Enter the monthly investment amount.
- Enter the annual interest rate (as a percentage).
- Enter the investment period in months.
- Click "Calculate" to see the estimated maturity value and total interest earned.
Key Benefits of a Recurring Deposit:
- Disciplined Savings: Encourages a regular savings habit.
- Guaranteed Returns: Offers a fixed interest rate, providing predictable returns.
- Easy to Start: Can be started with a small monthly investment.
Disclaimer:
This RD calculator is for informational purposes only and provides an estimate. Actual values may vary. Contact your bank or financial institution for precise calculations.