• 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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    RD Interest Calculator Reviews

  • Page 1 of 50 1 2 3 4 5
    • HDFC Bank Recurring Deposit
      "Wonderful"
      HDFC BANK
      0.5 4.0/5 "Great!"
      Rate of interest for the recurring deposit account is around 5.75% with the HDFC bank, also the customer service is good too. I would like to say that the charges are nominal one with the HDFC bank and everything is better with the HDFC bank.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 20, 2018
    • Corporation Bank Recurring Deposit
      "Average Service"
      CORPORATION BANK
      0.5 3.0/5 "Satisfactory"
      I've been using the CORPORATION bank savings account for a while. I faced Many problems, it will take 24 hours to activate the password for Internet banking. The branch service is okay but they need to provide more fast service to their customers in this fast paced financial environment.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 18, 2018
    • HDFC Bank Recurring Deposit
      "Best"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I do have the recurring deposit account with the HDFC bank and the customer service is very good. I have felt that the rate of interest is good one with the HDFC bank. There are no much strict tenure term with the HDFC bank.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 12, 2018
    • Axis Bank Recurring Deposit
      "Good Service"
      AXIS BANK
      0.5 5.0/5 "Blown Away!"
      I started a recurring deposit with the Axis bank. Every month 1000 will be debited from the account , there is no interest for the deposit. The process of opening the recurring deposit was easy and hassle free. It was done instantly.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 08, 2018
    • review Recurring Deposit
      "Need to improve"
      STANDARD CHARTERED BANK
      0.5 2.0/5 "Expected more"
      Rate of interest with the Standard chartered bank for the recurring deposit account is around 6.9%. Response is also fine one too. Customer service is good too. Online banking is also good one with them but the features are not.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 07, 2018
    • HDFC Bank Recurring Deposit
      "One of the best recurring deposit account"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I have the recurring deposit account with thge HDFC bank. I would like to say that the rate of interest is good one for me with the HDFC bank and the customer service is good one too. Minimum tenure is around six months of time.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 07, 2018
    • Oriental Bank of Commerce Recurring Deposit
      "Excellent"
      ORIENTAL BANK OF COMMERCE
      0.5 4.5/5 "Excellent!"
      I am having the recurring deposit account with the Oriental bank of commerce. Rate of interest is around 7.5%, also the response is good one. I would like to say that the minimum tenure is around four years of time. I am really happy with them till now.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 06, 2018
    • HDFC Bank Recurring Deposit
      "Good Service"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I've started a recurring deposit with the HDFC. I deposit 2000 every month. The amount will be auto debited form the account. The recurring deposit is very good for savings purpose. Overall it was really easy to start the recurring deposit with the HDFC bank.
      Was this review helpful? 0
      , chennai
      Reviewed on May 31, 2018
    • HDFC Bank Recurring Deposit
      "Good Service"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I was using the Recurring deposit with the HDFC bank. I was depositing 1000 rupees a month. I am not using this now. It is too easy to start an RD with HDFC . The payment gets auto debited every month. I never had any problems with the deposit and it is very good for savings purposes.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 26, 2018
    • HDFC Bank Recurring Deposit
      "Good Service"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have a recurring deposit with the HDFC bank. The interest rate is nominal. The EMI is Monthly Debited from the salary account. Opening the deposit was very easy and it was done online. Never had any issues with the service.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 26, 2018
    • SBI Recurring Deposit
      "Good Service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I have a recurring deposit with the SBI. I deposit 2500 every month, they offer a nominal interest rate of 6.5% per year. There no huge returns but it very good for savings purposes. I never faced any difficulty with their services. with respect to savings account.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 22, 2018
    • HDFC Bank Recurring Deposit
      "Recurring deposit with HDFC"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I have a recurring deposit with HDFC bank and the rate of interest which they provide for the account was around 6.75%. I have chosen the tenure for 30 months with a monthly EMI of 1500. I can withdraw the amount after 30 months or in between. The service was very easy and simple.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • HDFC Bank Recurring Deposit
      "Recurring deposit with HDFC"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have opened a recurring deposit with HDFC with a monthly EMI of 5000. The total tenure was for 2 years. The rate of interest which they were providing was 7.5%. We do withdraw the amount in between also there will not be any charges with them. The customer service and response with them is fine.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 19, 2018
    • HDFC Bank Recurring Deposit
      "Best Service"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have my ongoing Recurring Deposit with HDFC bank and i am investing from last 1 year, I pay an amount of Rs 1000 every month and the customer service of HDFC bank was very good, they gave all the right information and guided me well. The maturity period is after 1 year and i get a interest of 6.5% on returns.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Apr 09, 2018
    • HDFC Bank Recurring Deposit
      "Nice experience"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I hold a recurring deposit with HDFC Bank and the process is good. I can open this account on the mobile application. There is a lock in period for a year and six month. The rate of interest is good and there are no hassles in the process. Overall good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2018
    • HDFC Bank Recurring Deposit
      "Good investment plan with HDFC"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I have started a recurring deposit an investment plan with HDFC bank with a tenure of 1 years. The total rate of interest is which they provide for 1 year is 7%. Before completing the maturity period if i withdraw the amount, i am not sure about the withdrawal charges as i did not tried that. The customer service and response is fine.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 14, 2018
    • HDFC Bank Recurring Deposit
      "Good investment"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I have started a recurring deposit an investment plan with HDFC bank with a tenure of 2 years. The total rate of interest is 7%. After two years i can withdraw the amount. The customer service and response is fine. Before completing the maturity period if i withdraw the amount, i am not sure about the withdrawal charges.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 14, 2018
    • HDFC Bank Recurring Deposit
      "Good"
      HDFC BANK
      0.5 3.5/5 "Pretty good"
      I had a Recurring Deposit in HDFC Bank and it was closed long back. I have paid 1000 rupees every month. After the maturity period I have received a minimal amount. It is useful for the saving purpose. The rate of interest was not good. I got a proper response.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 01, 2018
    • HDFC Bank Recurring Deposit
      "Good service"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I had a Recurring deposit with HDFC bank and my experience was good so far, the services provided by this bank is very good when compared to other banks. I pay an amount of Rs 2000 every month which gets auto deducted from the salary account. I get a interest of 6.99% and happy with the returns.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 27, 2018
    • Axis Bank Recurring Deposit
      "Excellent"
      AXIS BANK
      0.5 5.0/5 "Blown Away!"
      I have closed the recurring deposit with the Axis bank and I have good relationship with them. I would like to say that the rate of interest is a kind of tricky one and it was okay one for me with them. I am okay with their banking services.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 27, 2018
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