Banks are a safe investment option as they guarantee fund access and security. You rely on their services and open a Bank Account to enjoy its benefits and features. It is also a popular financial product offered by all banking institutions in India with varying interest rates. Deposit schemes also offer higher interest for capital appreciation.
Whether you open a Fixed or Recurring Deposit Account, you need to use Deposit calculators to compute the estimated returns with interest over the tenure. The interest depends on the chosen tenure and frequency of payouts.
The formula for interest calculation is A = P(1+r/n)^n x t
Here, A is the maturity amount, P is the principal amount, R is the interest rate, N is the compounded interest frequency, and T is the tenure.
Working
It is easy to find tools online for all kinds of investments. They assist you in calculating the returns and planning finances. Input the deposit amount and tenure for calculating the amount receivable at the time of maturity. It helps you calculate cumulative and non-cumulative payouts.
You need to fill in the customer type, Deposit type, amount, and tenure to reflect the interest and maturity amount. You save time in manual calculations and determine the investment returns instantly.
Minimum amount
The minimum amount you can invest in an RD online varies between banks. You can start with Rs. 500 and deposit the same throughout the tenure. There is no limit on the maximum deposit amount.
How to compute?
Computing returns on the calculator are quick, accurate, customisable, and flexible. Knowing how to deal with numbers correctly is advantageous, especially concerning investments. It enables you to get a higher payoff at the end of the deposit tenure.
Maximising returns
If you want to maximise your returns on the Deposit Accounts through the Banking app, you must know the factors associated with the final maturity amount. A higher deposit amount means higher interest. The longer the tenure, the higher the interest. Also, a higher interest rate yields a greater interest amount.
The interest frequency of the Recurring Account is monthly, quarterly, half-yearly, and annually. However, frequent interest compounding decreases the amount. You can invest in Deposit Accounts and get guaranteed returns since they are a traditional and reliable investment method.
Benefits
An FD and RD are secure investment avenues offering fixed returns. Many banks are offering these online and making them easier to operate. You can skip the physical process of visiting the bank to open them.
If you enter the variables correctly, there are no chances of errors while using the Recurring Deposit interest calculator. Use it at any time and from anywhere without any hassles. You can also use it to compare the performances of other investment schemes. The Deposit Account tenure starts from six months and extends to 10 years.
