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.
Table of Contents
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
|Bank Name||Interest rate range|
|SBI RD Interest Rates||4.40% to 5.40%|
|HDFC Bank RD Interest Rates||4.40% to 5.50%|
|ICICI Bank RD Interest Rates||3.50% to 5.50%|
|Kotak RD Interest Rates||4.30% to 5.25%|
|BOI RD Interest Rates||4.35% to 5.05%|
|Union Bank of India RD Interest Rates||4.40% to 5.60%|
|Canara Bank RD Interest Rates||4.40% to 5.25%|
|Axis Bank RD Interest Rates||4.40% to 5.25%|
|Central Bank of India RD Interest Rates||4.25% to 5.00%|
|Bank of Maharashtra RD Interest Rates||4.00% to 4.90%|
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.
Know more about Recurring Deposit
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)
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
- 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.
- Is the interest that is generated from the RD account taxable?
Yes, the interest that is earned from an RD account is taxable.
- 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
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.
Yes, most banks provide an additional interest rate for senior citizens.
You will need to submit Form 15H or 15G to avoid deduction of TDS.
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.
Yes, the interest paid on RDs is compounded quarterly.
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.
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 Interest Rate Pages
- United Bank RD Interest Rates
- Uco Bank RD Interest Rates
- Allahabad Bank RD Interest Rates
- Central Bank RD Interest Rates
- Federal Bank RD Interest Rates
- Indian Bank RD Interest Rates
- Andhra Bank RD Interest Rates
- Kotak Mahindra RD Interest Rates
- Syndicate Bank RD Interest Rates
- IOB RD Interest Rates
- City Union Bank RD Interest Rates
- Citybank RD Interest Rates
- Indusind Bank RD Interest Rates
- Corporation Bank RD Interest Rates
- BOM RD Interest Rates
RD Article Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes