RD Calculator
(Note: Results are estimates for informational purposes only.)
What is an RD Calculator?
A Recurring Deposit (RD) Calculator helps you estimate the returns on your monthly savings. Unlike an FD where you deposit a lump sum, in an RD, you deposit money every month. This tool uses the standard bank formula to show you how your monthly contributions grow with interest.
How to use this tool?
• Monthly Deposit: Enter the amount you will deposit every month.
• Rate of Interest: Enter the annual interest rate (p.a.) offered by the bank.
• Time Period: Enter the total number of months you want to invest.
• Calculate: Click the button to see your total investment and maturity value.
Formula:
M = P * [ (1 + i)^n - 1 ] / [ 1 - (1 + i)^(-1/3) ]
(Note: This is the standard formula for quarterly compounding in RDs)
RD Calculator FAQs:
Q1. Are RD Calculator results accurate?
Ans: The calculator provides estimated results using commonly used bank formulas. The final maturity amount may vary depending on bank policies, compounding methods, and rounding rules.
Q2. What is the minimum tenure for an RD?
Ans: Most banks and post offices allow you to start a Recurring Deposit with a minimum period of 6 months.
Q3. Is interest on RD taxable?
Ans: Yes, the interest earned on a Recurring Deposit is taxable as per your income tax slab if it exceeds the limit set by the government.
Q4. Can I withdraw my RD before maturity?
Ans: Yes, most banks allow premature withdrawal, but they may charge a small penalty or offer a lower interest rate.
Disclaimer:
This calculator is provided for informational and educational purposes only. All results shown are estimates based on the values entered by the user and general assumptions. Actual results may vary due to changes in rates, rules, policies, market conditions, or specific terms applicable at the time. Users are advised to verify the results on their own and consult a qualified professional or concerned institution before making any important decisions.