Recurring Deposit Calculator

Recurring Deposit is a form of fixed/term deposit in which you can steadily invest every month in order to ascertain a certain financial goal. It is a regular and systematic investment which provides you fixed and secured returns.

It also helps you to fulfill your liquidity needs if you select the investment amount and tenure of the investment accordingly. A bank RD can help to create a wealth of you open an RD account when the interest rates are high and select your amount and tenure of the recurring deposit thoughtfully…read more

Type of Customer

Normal
Senior Citizen
500 10 Lakh

Tenure

YY
MM

Rate of Interest*

Maturity Date

RD Maturity Details

Maturity Value
Aggregate Interest Amount

Amount and Interest

Recurring Deposit Overview:

Recurring Deposit is a form of fixed/term deposit in which you can steadily invest every month in order to ascertain a certain financial goal. It is a regular and systematic investment which provides you fixed and secured returns. It also helps you to fulfill your liquidity needs if you select the investment amount and tenure of the investment accordingly. A bank RD can help to create a wealth of you open an RD account when the interest rates are high and select your amount and tenure of the recurring deposit thoughtfully. You must also renew your Recurring Deposit and at the end of the tenure of the deposit make a fixed deposit of the maturity amount proceeds. Recurring deposit is a financial investment offered by various financial institutions and banks in India. It is low-risk and offers higher returns than a savings account and is coupled with a flexible tenure option. It works like a fixed deposit but has higher flexibility. You can opt to invest in instalments through a recurring deposit rather than depositing in a lump sum amount.

The following are eligible to open a bank Recurring Deposit.

  • Any Indian Resident
  • Hindu Undivided Families
  • Any government organisation
  • Any company, corporate, proprietorship or commercial organization
  • Any Minor above 10 years age
  • Any Minor who is equal to or below 10 years age can open a recurring deposit under the guardianship of their legal guardian.

 Benefits of Recurring Deposit

  1. Recurring Deposits inculcate a regular habit of saving
  2. Recurring deposits offer higher interest rates than a savings bank account. It also provides privileges to senior citizens by offering higher interest rates
  3. You can take a loan against your recurring deposit by using it as collateral security. You can easily get 80-90% of the deposit as a loan
  4. You can fund your recurring deposit easily without worry by giving standing instructions to the bank to automatically debit the amount from your savings bank account and credit the recurring deposit on a specific date
  5. Recurring Deposit can be an investment for any term like for short term, middle term or even long term and it is very flexible as the minimum amount you can invest is as low as Rs 500.

Recurring Deposit Calculator

Recurring Deposit Calculator is a simple web-based calculator that helps to ascertain the quantum of interest that you can earn over the tenure of your Recurring Deposit and the total amount at maturity of the deposit or end of the tenure. It also helps to calculate the maturity value of your investment at a specific rate of interest. You do not need to install any plugin or software for online Recurring deposit calculator. It also assists you to calculate the Effective yield rate or what is the actual return on the deposits made by you. It is a useful tool which helps you to compare different deals and select the best one according to your needs.

You must look at each installment as a separate deposit as compounding happens at the end of each financial quarter and monthly. Each month deposit will draw a different interest amount. The maturity proceeds will be the total enhanced value of each installment.

Variables of Recurring Deposit Calculator

The following variables greatly influence the maturity amount at the end of the deposit tenure. All the variables are interdependent and the interest on the deposit or the maturity amount of the deposit can be enhanced by increasing either the tenure of the recurring deposit or by increasing the monthly deposit amount or both. Hence, the monthly deposit and tenure are directly in proportional to the maturity proceeds and interest earned.

  1. Interest Rate – Interest Rate is compounded quarterly in Recurring Deposit Calculator. You must open a recurring deposit when interest rates are higher as once you open a recurring deposit at higher interest rates it remains the same for the whole tenure of the recurring deposit until its maturity.
  2. Monthly InstallmentMonthly Installment is the amount you are willing to deposit every month with the bank for a fixed tenure to fetch higher interest on your money with the bank. The minimum amount of monthly installment for a recurring deposit is Rs 500 whereas there is no maximum limit in a recurring deposit.
  3. Tenure of Recurring Deposit-The minimum tenure to open a Recurring Deposit account with a bank is 6 months and the maximum tenure is 10 years.
  4. Interest Compounding FrequencyThe calculation of maturity amount is based on the monthly installment you make in your recurring deposit account. Generally, the interest on the recurring deposit is compounded on a quarterly basis.

How does Recurring Deposit Calculator Works?

The Online Recurring Deposit Calculator works as per compound interest method, where you get interest not only on your principal amount but also om your earned interest amount. The maturity value of the deposit depends on your amount of investment, tenure of the deposit and rate of interest which is compounded on a quarterly basis.

The formula that is used to arrive at the maturity value of a recurring deposit over a specific period at a certain rate of interest by most bank in India is as follows:

                                          A = P * (1 + R/N ) ^ ( N x t )

Where A stands for a maturity amount

P stands for Principal i.e the amount invested monthly

N stands is the compounding frequency(Quarterly)

R stands for rate of interest

T stands for tenure i.e number of months of deposit

Example-Suppose you open a 2-year recurring deposit of Rs 3,000 at 8 per cent per annum interest rate, then maturity value will be calculated = Rs 78,318.

How to calculate Recurring Deposit maturity proceeds and interest using Recurring Deposit Calculator

Follow the steps stated below to calculate the maturity proceeds and interest on the deposit through the online Recurring deposit calculator:

  1. Visit the website of any bank that has procured Recurring Deposit Scheme
  2. Firstly, you have to enter the date of opening of your Recurring Deposit
  3. Enter the amount of deposit you want to make every month in your recurring deposit account
  4. Enter the duration/tenure of the deposit in months which can be between 6 months up to a maximum of 10 years
  5. Lastly, enter the annual rate of interest offered by the bank at which the deposit investment has been made by you
  6. The calculator will show the maturity value of your investment along with the maturity date. It will also show the total investment amount and total Interest earned on your investment separately
  7. Please note that the amount as shown in the calculator is an indicative figure. You must refer recurring deposit bank advice to get the exact maturity amount.

Top #7 Benefits of using Recurring Deposit Calculator:

Recurring Deposit Calculator is fast and simple. It provides numerous benefits as stated here under.

  1. Recurring Deposit Calculator eliminates the problems of computing the results manually and enable you to know the exact amount at the maturity of your recurring deposit after the relevant period
  2. The calculator helps you to plan your future finances as it states clearly the exact amount your investment will accrue
  3. The accuracy of Recurring Deposit Calculator can never be in question. It is simple, easy, instant, dynamic as well as accurate. Accurate estimates are important for proper financial planning
  4. Recurring Deposit Calculators are very convenient to use and it also saves you a lot of time and effort for calculating tricky calculations
  5. It is straightforward to use and it does not require any subject expertise
  6. Recurring Deposit Calculator is free for use. It can be used as many times as you want. You can also input one or more than one variable to check different maturity amounts for different monthly deposits
  7. The Calculator is dynamic and can be used for varying combinations of recurring deposit term year, monthly deposit amount and interest rates.