A recurring deposit is a form of fixed or term deposit in which investors can steadily invest every month to meet a specific financial goal. It is a regular and systematic procedure which provides fixed and secured returns. It also helps fulfil their liquidity needs by selecting the investment amount and tenure of the investment accordingly.
A bank RD can help to create wealth when the interest rates are high. Customers must also renew their recurring deposit at the end of the tenure or make a fixed deposit of the maturity amount proceeds. Various financial institutions and banks in India offer this investment product with flexible tenures and varying interest rates. It is low-risk and offers higher returns than a savings account. Invest in instalments rather than in a lump sum amount.
One of the most effective tools to calculate returns is a recurring deposit calculator which is a simple web-based device that helps estimate the rate of interest that an investor can earn over the tenure of the deposit. It will also reflect the total amount at the time of maturity or end of tenure. Customers can also use it to compare schemes offered by different banking institutions and select the one that suits their financial needs.
They must look at each investment as a separate deposit as the compounding process occurs monthly and quarterly every financial year. Each month, the deposit draws a fixed rate of interest until maturity.
An RD calculator requires a set of variables to help it calculate the result. The interest rate calculation takes place every quarter. Open the account when the interest rates are high to get better returns. The monthly instalment amount is the amount that gets credited every month in the account for a fixed tenure to fetch higher interest. The minimum deposit amount is INR 100, whereas the tenure is from six months to 10 years.
The RD interest calculator is fast, simple, and convenient. Many investors can receive benefits from it and calculate the approximate maturity value. The following are the benefits it offers:
- It eliminates the problems of computing the results manually and provides the exact amount at the maturity of the recurring deposit after the relevant period
- The calculator available on the banking app helps investors plan their future finances
- The accuracy of the calculator is undoubtedly the best and aids in proper financial planning
- They save a lot of time and effort for calculating tricky formulas
- It is simple to use and does not require expertise
- Find a recurring deposit interest calculator online and use it for free as many times as desired. Input one or more variables to check different maturity amounts for various monthly deposits.
- The calculator is dynamic and compares varying combinations of recurring deposit term year, monthly deposit amount and interest rates