Calculate the interest earned and total savings on your Recurring Deposit (RD) with our easy to use RD Interest Calculator for free. This tool enables investors to plan their future finances by providing the exact amount of saving.
The best way to secure financial future is to begin contributing for your long term goals early in your life. Early starters are likely to be better ready for pressing life situations. After all, saving is a habit that needs to be inculcated in the kids as the first lesson for financial management at home.
Nevertheless, it is never too late to start. Whether you are now a college graduate, self-employed, or a salaried individual, regular savings via Recurring Deposits (RD) is not overbearing for your budget. RDs are one of the easiest ways to build a long term corpus without affecting your monthly budget.
For those of you, who love to carefully plan their financial moves, online RD Calculator comes as a must-to-access tool online. Fill the amount that you want to save along with the frequency of contribution or number of months you intend to save for, and rate of interest. Pressing the calculate button, you will instantly get a ballpark estimate of return on your RD account. You can either save according to your goals or according to the monthly surplus you spare at ease.
For example: By saving 2000 every month for 10 years at a rate of 7% p.a. you will accumulate 347,403 on maturity.
You can use online RD calculators to calculate maturity amount or instalment amount according to your needs. The online calculators are convenient as well as helpful tool for basic financial planning. You can also visit a bank's website to access a tool.
|SBI Recurring Deposit Rate||5.00% - 5.40%|
|HDFC Recurring Deposit Rate||3.50% - 5.50%|
|Yes Bank Recurring Deposit Rate||5.50% - 6.75%|
|PNB Recurring Deposit Rate||4.40% - 5.30%|
|ICICI Bank Recurring Deposit Rate||3.50% - 5.35%|
|Kotak Bank Recurring Deposit Rate||4.40% - 4.75%|
|Axis Bank Recurring Deposit Rate||4.40% - 5.50%|
|Bank of India Recurring Deposit Rate||6.25% - 6.70%|
|Bank of Baroda Recurring Deposit Rate||3.70% - 5.25%|
|Syndicate Bank Recurring Deposit Rate||4.45% - 5.50%|
|Bandhan Bank Recurring Deposit Rate||5.40% - 6.75%|
|Canara Bank Recurring Deposit Rate||4.45% - 5.50%|
|Dena Bank Recurring Deposit Rate||6.25% - 7.25%|
|DHFL Recurring Deposit Rate||8%|
|Deutsche Bank Recurring Deposit Rate||5.50% - 7.75%|
|Recurring Deposit Post Office||5.5% - 5.8%|
*Rates of interest are subject to change.
*Rates for senior citizens are higher than regular rates.
It is paramount to understand a financial product before you opt for it. Following features of RDs will help you better understand your RD account:
High interest rate - Recurring Deposits entail higher interest rate than Savings Account. You can use the surplus amount from your bank account and earn higher return month-on-month.
Inculcates Saving Habit- Recurring Deposits directly inculcate saving habit in the depositor. By sparing out a part of income every month, you learn to manage your funds diligently every month.
Idea for Homemakers - Recurring Deposits can be started with minimal monthly contribution and persons with limited income source like Homemakers and pensioners can make good use of RDs without any trouble.
Senior Citizens - Senior citizens above the age of 60 years earn a higher rate of interest on recurring deposits. So, RDs are a lucrative saving scheme for old and retired people.
Ease of Saving - The ease of saving a small amount every month makes RDs easy to open and manage for all categories of individuals. A depositor is less likely to delay the monthly saving even for low income months.
Most banks compound the interest on Recurring Deposits on a quarterly basis.
The RD Calculation is carried out using the formula:
M = R [(1+i) n - 1]
M = Maturity value
R = RD monthly contribution
n = tenure
i = interest rate
You can either manually carry out the calculation for maturity amount of your RD Account or use an online RD Calculator for the same.
Online calculators are free, instant, and hassle free. All you require is to fill the desired fields, and the calculator will share the estimated amount on maturity.
You can also compare different RD offers from various banks and choose the most lucrative one.
After submission of request form along with required documents, the account is initiated the next working day.
While SIPs and ELSS extend far higher returns on investment, RDs are preferred by a lot of households for a number of reasons, such as:
Let's understand this with an example.
Mrs. and Mr. Ajay Bhardwaj are blessed with a baby girl on 10th November 2018. They decide to open two Recurring Accounts with 2000 per month for 36 months at 7.4% rate, and another 10 year RD at 7 %.
The first RD Scheme will yield 80784 by the end of three years when the child will be ready to school a formal school. The second RD scheme will yield 347,403 after 10 years. They intend to FD the amount after maturity of the second RD and continue saving 2000 in RDs for the next 7 years so that they can build an education fund for her.
Though we haven't considered other factors such as inflation or tax implication, if applicable; the RDs can certainly be used for education planning of children without any hassles. They offer you assured returns with the least risks involved.
Likewise, if you begin to save 2000 per month from the year you get your job, you can approximately accumulate 10-12 Lakh in the 30 years with 7% rate. As RDs are opened for a maximum of 10 years, put the maturity amount after 10 years to an FD account or invest in MF to build wealth. Judicious use of funds can build you much more.
Undoubtedly recurring deposits are one of the safest and easiest ways to build wealth. And online calculators have made it easier for consumers to compare and pick the best deals.
If you are already a customer of the bank, it is practically hassle-free to request an RD account. All just need to make a request online for RD, and a standing instruction (SI) will be set for the tenure and amount selected by you. Or, the bank will send its representative to collect the first cheque for the same. Within 24 hours the request will be processed, and the amount will be automatically debited from the account on the due date every month.
Well, as such a bank will never limit your RD accounts, however, you must know that interest earned more than Rs 10000 on RDs attracts a tax. In case you do not have a pan card and your accounts earn taxable interest on RD, you will be charged TDS at 20%.
On payment of premature withdrawal charge, you can redeem your RD account. However, it is recommended not to do the same unless you have an urgent need in hand.
Well, compare interest rate and tenure before you decide on the best RD scheme. The longer tenure will earn your better rate. However, you must correlate the tenure with your situation.
While you earn a competitive rate of return from RDs as compared to FDs, the maturity amount is greater in Fixed Deposit as interest is compounded quarterly. However, not everyone has a lumpsum amount to reap from FDs. The suitability of the financial product is primarily adjudged based on the profile of the depositor.
If you have irregular income, RD is more suitable; however, with a surplus amount you might want an FD on your name. Both are relatively safer than SIPs as they offer a fixed return on the plan.