RD Calculator

Understanding Recurring Deposits (RD)

A Recurring Deposit (RD) is a special type of term deposit offered by banks and financial institutions that allows customers to save a fixed amount every month for a predetermined period. It's an excellent savings instrument for individuals with regular income who want to save consistently.

How Recurring Deposits Work

Recurring deposits work on a simple principle:

1. You commit to depositing a fixed amount every month for a fixed tenure
2. The bank pays you interest on your deposits at a predetermined rate
3. At maturity, you receive the total amount deposited plus the accumulated interest

Key Features of Recurring Deposits

• Fixed Monthly Deposits: Regular fixed amount deposited each month
• Flexible Tenure: Typically ranges from 6 months to 10 years
• Fixed Interest Rate: Rate locked at the time of account opening
• Loan Facility: Can avail loans against RD up to 90% of the deposit value
• Premature Withdrawal: Possible with a penalty on interest rate
• Tax Benefits: Interest earned is taxable as per your income tax slab

Benefits of Recurring Deposits

How to Use Our RD Calculator

Our RD calculator helps you project the potential returns on your recurring deposit investment:

1. Enter Monthly Deposit: The amount you plan to invest each month
2. Set Interest Rate: The annual interest rate offered by the bank
3. Select Tenure: The duration for which you want to maintain the RD
4. Calculate: See your projected returns and maturity amount

The calculator shows you the total amount deposited, interest earned, and the final maturity value. It also displays a visual chart to help you understand how your investment grows over time.