How This RD Calculator Works & Recurring Deposit Details
🔍 Understanding Recurring Deposits (RDs)
A Recurring Deposit (RD) is a special type of term deposit where you save a fixed amount every month for a predetermined period. RDs help cultivate regular savings habits while earning higher interest than regular savings accounts.
Key Features of RDs:
- Monthly Investments – Fixed amount deposited every month
- Flexible Tenures – Typically 6 months to 10 years
- Quarterly Compounding – Interest compounded every 3 months
- Loan Against RD – Can avail loans up to 90% of deposit value
🧮 How This RD Calculator Works
This calculator helps you estimate your maturity amount based on:
- Monthly Deposit – Fixed amount you save each month
- Interest Rate (%) – Annual RD rate offered by the bank
- Tenure (Months) – Duration of your RD (usually in months)
Formula Used:
The calculator computes maturity value using the RD interest formula:
M = P × [ (1 + r/n)n×t - 1 ] / (1 - (1 + r/n)-1/3 )
💡 Tips for Maximizing RD Returns
- Start with smaller amounts if you're new to disciplined saving
- Align RD tenure with your financial goals (education, vacation, etc.)
- Auto-debit feature ensures you never miss a deposit
- Compare RD rates across banks and post office schemes
📌 Why Use Our RD Calculator?
- Accurate Projections – Accounts for quarterly compounding
- Goal Planning – Helps determine monthly savings needed for targets
- Flexible Scenarios – Test different deposit amounts and tenures
Build your savings discipline and grow your money safely with RDs! 💰