A Recurring Deposit (RD) is a systematic savings scheme where you deposit a consistent amount each month for a predetermined duration. At maturity, you get back your total deposits along with accrued interest.
This investment tool is favored by those who aim to build savings steadily while gaining returns on their contributions.
Offered by banks and financial entities, RDs ensure a secure and structured approach to accumulate wealth.
They typically yield higher interest rates compared to standard savings accounts, appealing to cautious investors seeking stability.
1. Choose your desired currency.
2. Input the amount to be deposited monthly.
3. Specify the annual interest rate.
4. Define the duration in months.
5. Press "Compute" to view your results.
The calculator provides:
Maturity Value = M × T + (M × T × (T + 1) × i) / (2 × 12 × 100)
Where M = monthly contribution, T = tenure in months, i = yearly interest rate
Q: Are RDs completely safe?
Yes, being bank-backed, RDs are highly secure.
Q: Can I withdraw my RD prematurely?
Yes, though it may result in penalties or lower returns.
Q: How is the interest computed?
Interest is calculated based on the cumulative deposits over the tenure.
Q: Is borrowing against an RD possible?
Yes, many banks offer loans against RDs for emergency liquidity.
Q: What’s the minimum monthly deposit?
It depends on the bank, often starting at ₹500 or equivalent.
Q: How frequently is interest added?
Typically quarterly, though this varies by institution.
Q: Can I alter my monthly deposit?
No, the deposit amount is fixed when the RD account is opened.