Whoever said wishes don’t come true hasn’t explored our offers!

# RD Calculator

Recurring Deposit (RDs) are very popular investment instruments which allows you to invest a small amount of money and earn interest on it. The investments must be made at regular intervals. Almost all banks across the country offer RDs at attractive interest rates.

Various banks and third-party websites provide the RD Calculator facility, where you can find out the amount you will receive at the time of maturity. The calculator is simple to use and displays results immediately. All you have to do is enter basic details like the investment amount, tenure, and rate of interest.

## Interest Offered by Top Banks on Recurring Deposit

The table listed below provides the interest rates offered on recurring deposit by some top banks operating in the country

## Recurring Deposit Calculator

RD Calculator is used to determine the amount of money you will receive once your RD matures. You can use the RD Calculator offered by several banks or a simple formula to determine the amount. Using the RD Calculator can help you get the results immediately and the process is hassle-free. The interest that is generated from an RD account is compounded quarterly.

## Advantages of Using the RD Calculator

Some of the main advantages of using the RD Calculator are mentioned below:

• Accurate estimations are provided.
• Saves time and is convenient.
• You can plan your finance in the long run.

## How is RD Interest Calculated

The interest amount on recurring deposits is usually compounded on a quarterly basis. The following formula is used by banks to calculate how much the interest component on a recurring deposit will be at maturity:

M =R[(1+i) n – 1]/1-(1+i) (-1/3)

Note:

M = Maturity value of the RD

R = Monthly installment credited in the RD

n = Number of quarters (in the total tenure)

i = Rate of Interest / 400

## Process to use the Online RD Calculator

The step-by-step procedure to use the online RD Calculator is mentioned below:

• Enter the amount that you will deposit every month.
• Enter the tenure of your RD investment.
• In case you are using the RD Calculator offered by banks, the rate of interest will be given. If you are using the RD Calculator offered by third-party websites, the interest rate must be entered.
• Click on ‘Calculate’. The results will be displayed immediately.

## RD Interest Rate Calculator FAQs

1. Will I have to pay a penalty in case there is a delay in the monthly deposit?

Yes, a penalty will be levied in case there is a delay in the monthly payment. Depending on the bank and the period of delay, the penalty that must be paid will vary.

2. Is the interest that is generated from the RD account taxable?

Yes, the interest that is earned from an RD account is taxable.

3. What are the different methods by which I can open an RD account?

The different methods by which you can open an RD account are mentioned below:

• By visiting the branch
• Mobile Banking
• Internet Banking
4. How is the interest earned on an RD account calculated?

The interest that will be earned on an RD account is calculated by applying the compound interest formula. Even though deposits must be made every month, the interest is compounded quarterly.

5. Is there any additional interest provided for senior citizens?

Yes, most banks provide an additional interest rate for senior citizens.

6. Which form should I submit if I wish to avoid TDS?

You will need to submit Form 15H or 15G to avoid deduction of TDS.

7. Which is the formula used to calculate compound interest on Recurring Deposits?

The formula used is A = P(1+r/n) ^ nt, where ‘A’ represents final amount procured, ‘P’ represents principal, ‘r’ represents annual interest rate, ‘n’ represents the number of times that interest has been compounded, ‘t’ represents the tenure.

8. Is the interest paid on RDs compounded quarterly?

Yes, the interest paid on RDs is compounded quarterly.

9. For calculation of simple interest, which formula is used?

The formula used for calculation of simple interest is I = P x R x T where ‘I’ stands for Interest, ‘p’ stands for principal, ‘r’ stands for annual interest rate, and ‘t’ stands for tenure of the deposit.

10. When is simple interest calculated with regard to recurring deposits?

If you open a recurring deposit account in the middle of an ongoing financial quarter say in the month of May, the deposited amount will earn simple interest until the end of June. Following that, the interest will be compounded as a new quarter starts.

## RD Article Pages

Recurring Deposit Pages

## Disclaimer

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

reTH65gcmBgCJ7k