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Recurring Deposit (RD) Interest Calculator

RD Interest Calculator

Recurring Deposit is one of the most popularly procured investment schemes in India, by its citizens. This is especially popular among those from the salaried classes as this scheme is easy to procure, affordable and does not require a large amount of deposit. This investment option is provided by almost all banks in India such as Punjab National Bank, State Bank of India, ICICI Bank, IDBI Bank, HDFC Bank, Corporation Bank, Bank of Baroda and so on.

Under this scheme, customers will have to invest a set amount(subject to a minimum requirement) every month and the can avail a fixed rate of interest from the bank (rates are predetermined), until the period of maturity. At the end of this scheme, customers will receive the maturity amount, which is a sum of their deposit along with the payable interest.

This scheme is highly advantageous for those who do not have a large amount of money to invest but still wish to invest a certain amount and earn guaranteed returns. This is also a safe investment as there is no chance of the customer losing the money that they have invested.

Unique Features of a Recurring deposit Scheme, Are As Follows:

  • Customers will have to deposit a fixed amount each month.
  • Tenure or time periods of a Recurring Deposit Scheme is in multiples of 3 months.
  • Interest rate is determined annually.
  • Compounding is done after every quarter and not every month as many believe.

What is RD Calculator?

A Recurring Deposit Calculator as the name suggests, is used to find out the maturity value of the recurring deposit. There is a simple formula that is provided with which interest on a Recurring Deposit investment can be calculated. However, there are a few aspects that customers must keep in mind prior to calculating the interest.

Customers must look at each month’s installment as a separate deposit. Compounding only happens at the end of every financial quarter and not every month. Each monthly deposit will earn a different amount of interest. The amount procured at maturity is the total of enhanced value of each month’s deposit.

Formula for Calculating Interest on Recurring Deposit

As mentioned previously, compound interest on a Recurring Deposit amount is only added after the first quarter. Financial Quarters in a year are determined as follows -

  • Quarter 1 is from April to June
  • Quarter 2 is from July to September
  • Quarter 3 is from October to December
  • Quarter 4 is from January to March

Compounding occurs only after every quarter, hence until then a simple interest calculation will be applicable. For example, in case an individual avails a Recurring Deposit scheme in the month of February, the amount will only provide a simple interest until the month of March, after which interest will be compounded.

The formula used for Simple Interest is -

I=Prt

I stands for Interest

P stands for Principal

R is annual interest rate applicable(in decimal)

T is the tenure or time period of the scheme

The formula used for calculating Recurring Deposit Interest, provided by the Indian Bank Association, is as follows-

M =R [ (1+i)n – 1]

——————–

1- (1+i) -?

M stands for Maturity value

R stands for Monthly Installment

i stands for rate of interest divided by 400

n stands for number of quarters

By using the above formulas, in case a depositor invests Rs.1,000 in the month of January, using the simple and compound interest formulas provided, he/she will have Rs.12,801.90 as maturity amount at the end of the year at 12% rate of interest.

In another example, Sheela has procured a Recurring Deposit Scheme for a period of 30 months wherein she invests Rs.10,000 per month. The applicable rate of interest is 5% per annum.

The amount she receives upon maturity will be Rs.3,20,095 and the amount of interest that has been included in the maturity value is Rs.20,095.

How Can One Calculate RD Interest Online?

Customers can easily calculate the interest applicable and maturity amount that can be procured from a Recurring Deposit scheme by using the formulas mentioned above.

However, customers can also calculate the same online by visiting the website of the bank that they have procured their Recurring Deposit scheme from or most other banks, such as ICICI Bank, SBI Bank and so on. These banks generally have an online calculator which can be used to calculate interest.

How to Calculate Compound Interest on Recurring Deposit?

When it comes to Recurring Deposits, interest amount is compounded every quarter. This is then added up and the final amount that customers receive can be determined. The formula used to calculate compound interest is as follows-

A = P (1 + r/n) ^ nt

Where

A represents final amount procured

P represents principal or the amount that has been invested initially

r represents annual interest rate, counted in decimal

n represents the number of times that interest has been compounded per year

t represents tenure of the scheme

By using the above formula, the compound interest can be calculated.

For example,

Ajay has made an initial investment of Rs.1 lakh for a period of 5 years. The interest rate applicable is 8%. By using the above formula, the final amount that he will get is Rs.1.5 lakh.

Difference between Simple Interest and Compound Interest

The cost of borrowing money is known as interest, wherein the borrower pays a certain amount of fee to the lender. This is generally expressed in the form of a percentage and is either compounded or simple. Simple interest is calculated only on the basis of the principal amount of the loan whereas compound interest takes into consideration both the principal amount and the interest that is accumulated.

Simple interest is determined by multiplying the interest rate, number of periods in that loan with the principal amount.

The formula for this is -

I=Prt

I stands for Interest

P stands for Principal

R is annual interest rate applicable(in decimal)

T is the tenure or time period of the scheme

Compound interest is determined by multiplying principal amount into 1, added to the yearly rate of interest raised to the number of years minus 1. Unlike simple interest, compound interest is accrued on the principal amount and also the accumulated interest of previous periods.

The formula used to calculate Compound Interest is -

A = P (1 + r/n) ^ nt

Where

A represents final amount procured

P represents principal or the amount that has been invested initially

r represents annual interest rate, counted in decimal

n represents the number of times that interest has been compounded per year

t represents tenure of the scheme

TDS on Interest from Recurring Deposit

Until the May of 2015, banks did not deduct tax on the Recurring Deposit interest. However, from the 1st of June, 2015, TDS or tax Deduction at Source was applicable on the interest accrued on a Recurring Deposit account.

If the individual wishes to avoid having the tax deducted at source then they will have to submit Form 15H/15G or Exemption Certificate under Section 197 or any other applicable Tax Exemption Certificate with the bank. This tax exemption certificate or form will have to be provided every financial year for each Recurring Deposit held with the bank.

Recurring Deposit - Sitemap

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Recurring Deposit by Banks
Recurring Deposit by other Institutions

RD Interest Calculator Reviews

Page 1 of 50 1 2 3 4 5
  • IDBI Recurring Deposit
    "satisfactory"
    IDBI BANK
    0.5 5.0/5 "Blown Away!"
    I have a savings account with IDBI BANK since the interest rate is good so have decided to open Recurring Deposit with them and its 5 years now. They offer 8.6% which was satisfactory. Its a monthly investment and have enabled ECS option. This account is manageable online.
    Was this review helpful? 0
    , bangalore
    Reviewed on Mar 19, 2019
  • HDFC Bank Recurring Deposit
    "Good Investment"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have recurring deposit with HDFC account, I went to the bank and opened the account , within 5 days it got activated. I used to get reminder messasge for monthly RD. Minimum I can deposit from Rs.500 to 1 lakh, the current interest with HDFC around 7.5% its really good.
    Was this review helpful? 0
    , pune
    Reviewed on Mar 17, 2019
  • SBI Recurring Deposit
    "Good Saving"
    STATE BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    Based on SBI saving account, I have opened recurring deposit with SBI, I am depositing Rs. 20,000 in a month, the bank will provide the interest around 6.7% based on the current financial year. I could access RD account through mobile application.
    Was this review helpful? 2
    , hyderabad
    Reviewed on Mar 11, 2019
  • HDFC Bank Recurring Deposit
    "Good Investment"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have activated HDFC recurring deposit through online banking within 3 days of time, monthly I deposit Rs. 1000 it has the term of 12 years, the rate of interest is around 8.2%, the support is very good for the recurring queries, there is no charges for the prematures withdrawal.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Mar 11, 2019
  • ICICI Bank Recurring Deposit
    "Excellent feature"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have another recurring deposit account with ICICI Bank, but this one is opened through iwish. It is a flexible recurring deposit. I can choose a goal and deposit fund as and when I want too. I do not have to do it only on a monthly or quarterly basis.
    Was this review helpful? 0
    , chennai
    Reviewed on Mar 10, 2019
  • ICICI Bank Recurring Deposit
    "Good in all"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have a recurring deposit at ICICI Bank as well. It was a easy process to open this account. I could do it online and I can make a investment every month. They provide a reasonable rate of interest too. I can even close this account online. I need not have to visit the bank.
    Was this review helpful? 0
    , chennai
    Reviewed on Mar 10, 2019
  • SBI Recurring Deposit
    "Good"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    The interest rate is nominal when compared with other banks. As my savings account is with SBI and it was easy to do transactions for me and convenient, I have no customer care experience with Recurring Deposit account. I do monthly investment through online net banking.
    Was this review helpful? 0
    , new delhi
    Reviewed on Mar 09, 2019
  • HDFC Bank Recurring Deposit
    "Good for saving"
    HDFC BANK
    0.5 3.0/5 "Satisfactory"
    Every month I used deposit Rs. 5000 for one year of HDFC recurring deposit, the current interest is around 5 to 6% for recurring investment, I have option to take liquidity through online. The customer support is good on my queries regarding RD.
    Was this review helpful? 0
    , bangalore
    Reviewed on Mar 07, 2019
  • Citibank Recurring Deposit
    "Best saving terms"
    CITIBANK
    0.5 5.0/5 "Blown Away!"
    I had recurring deposit with CITI bank now I closed it, I used to pay Rs. 3000 on monthly basis for the period of five years, I kept has buffer as an account. I have closed it after four months, the interest was decent, I love to bank with Citibank as the online banking is convenient.
    Was this review helpful? 0
    , medak
    Reviewed on Mar 07, 2019
  • ICICI Bank Recurring Deposit
    "Good "
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have a Recurring Deposit account in ICICI BANK because hold a salary account where I can do a internal transfer without any issues. The interest is similar like other banks. I never had a chance to contact the customer support. I could manage this account online and it was good. I am depositing monthly 3K through online.
    Was this review helpful? 1
    , bangalore
    Reviewed on Mar 04, 2019
  • HDFC Bank Recurring Deposit
    "Very Good Service"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I have started this Recurring deposit two months back and i had been investing on them at time to time. The payments had been made through the brokerage and their customer support has been guiding me every time. The interest rate with them is also quite nice when compared with the other banks.
    Was this review helpful? 1
    , new delhi
    Reviewed on Mar 03, 2019
  • Corporation Bank Recurring Deposit
    "Safe and secured investment"
    CORPORATION BANK
    0.5 5.0/5 "Blown Away!"
    I making recurring deposit with Corporation bank, I have fixed one slap to make the payment on the duration of five year. I can track the RD transactions through mobile application. The bank staff are resolving the queries on the time, its safe and secured.
    Was this review helpful? 0
    , mangalore
    Reviewed on Feb 28, 2019
  • SBI Recurring Deposit
    "Need developement on the online website"
    STATE BANK OF INDIA
    0.5 2.0/5 "Expected more"
    Currently SBI is providing recurring deposit interest around 7% per annum, as per the interest rate its good. But for the recurring deposit, the bank need improvement on the netbanking. Because every month I need deposit the money manually they wont deduct the money from my account.
    Was this review helpful? 2
    , pune
    Reviewed on Feb 25, 2019
  • SBI Recurring Deposit
    "Average RD account"
    STATE BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I have chosen the state bank of India for my recurring deposit. One of my friend has recommended me about the SBI. The interest rates are nominal and There is no charges for maintaining the Recurring Deposit. I have been investing the amount of Rs. 5000 for last 3 years. I need to hold the money upto 7 years.
    Was this review helpful? 2
    , kolkata
    Reviewed on Feb 25, 2019
  • review Recurring Deposit
    "Very Good Service"
    RATNAKAR BANK
    0.5 4.0/5 "Great!"
    I had started this investment plan almost four to five months back and it is highly recommended to others. I had making the investments on a monthly basis and the interest rate which they are offering is very good when compared with the other banks. Their customer support team and their staffs had been helpful at all times as well.
    Was this review helpful? 0
    , mumbai
    Reviewed on Feb 25, 2019
  • ICICI Bank Recurring Deposit
    " Need more benefits"
    ICICI BANK
    0.5 3.0/5 "Satisfactory"
    Previously I had recurring deposit of Rs.20,000, every month I used to deposit it. The benefits are less hence I didn't find any worthy so I have closed the RD account, they need to give more interest on the RD part. I don't know whether they change it or not.
    Was this review helpful? 1
    , bangalore
    Reviewed on Feb 23, 2019
  • Indian Bank Recurring Deposit
    "Good Investment"
    INDIAN BANK
    0.5 5.0/5 "Blown Away!"
    In Indian Bank RD interest rate is more than 6.5% for per annum, it has minimum tenure of one year then I can prolong the recurring deposit duration upto three years. I can make the payment through online or atm, they have lots of facilities, its really good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Feb 21, 2019
  • Indian Bank Recurring Deposit
    "Good Investment"
    INDIAN BANK
    0.5 5.0/5 "Blown Away!"
    In Indian Bank RD interest rate is more than 6.5% for per annum, it has minimum tenure of one year then I can prolong the recurring deposit duration upto three years. I can make the payment through online or atm, they have lots of facilities, its really good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Feb 21, 2019
  • HDFC Bank Recurring Deposit
    "Fine Account"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have invested my money from HDFC. I have invested the money for 6 months. Since i had a savings account with them, its a compulsory with them, i have invested with them. I have already my recurring deposit because i need to maintain a minimum balance. Since there is no issues, i have not contacted the customer care service.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Feb 20, 2019
  • Kotak Recurring Deposit
    "Nice experience"
    KOTAK MAHINDRA BANK
    0.5 5.0/5 "Blown Away!"
    I also bank with Kotak Mahindra Bank for the recurring deposit. The customer support is good and there are no hassles to open this account online. I earn good interest on it and I can close the account when ever I wish too. I can also deposit what ever amount is suitable for me.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Feb 07, 2019
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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.

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