RD Calculator
Calculate the interest earned and total savings on your Recurring Deposit (RD) using our free RD Interest Calculator. This tool helps investors manage their future finances by offering an exact amount of savings.
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.
Recurring Deposit (RD) Calculator
| Bank | Interest Rates |
| 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.
What is Recurring Deposit or RD?
Before we go into the details of the Foreclosure Calculator and how to utilise it, it’s important to understand the notion of the EMI.
EMI stands for Equated Monthly Installment. It represents the amount that a borrower must repay each month for a certain loan term. EMI depends on the following three factors:
- The principal amount of the loan
- The applicable rate of interest on the loan
- The repayment tenure of the loan
The calculation of the EMI is a difficult operation. However, the EMI Calculator is available on the internet. These calculators are also available on the official websites of each bank and financial organisation. One such Loan Closure Calculator is also available on our website.
Using the EMI Calculator is easy. The user has to enter the following three pieces of information:
- The loan amount
- The rate of interest
- The loan tenure
On entering this data, you get your EMI in an instant.
This EMI is made up of two components: principle repayment and interest payback. Both of these numbers are variable. Typically, the interest portion is bigger in the early phases. It decreases progressively as the debt is repaid. The principal amount is voided during the course of the term.
Features of RD Account
Before you choose a financial product, make sure you understand it. The following aspects of RDs can help you better understand your RD account.
- Minimum Monthly Deposit Most banks allow an RD account with a minimum monthly fee and no maximum deposit. Therefore, RD devices are used by a diverse customer base, from low-income groups to affluent consumers.
- For example, an RD account can be opened in SBI with a small monthly deposit of 100 euros. The minimum limit really varies from bank to bank.Participation period You can open an RD account for a fixed period from 12 months to 10 years.
- Interest The RD interest is much higher than a savings account and the same as a fixed account. security deposit.Interest in RD occupation Higher tenure earns higher income.
- So, if you are applying for RD permission, compare the performance of different properties and choose the most profitable offer.Early Withdrawal Withdrawal from RD accounts is allowed only after maturity. A penalty is charged for early or mid-term withdrawal. There is also a waiting period and withdrawal before this period will cancel the interest accumulated in your account.
- Credit value You can avail an easy loan against RD because lenders accept the value of the RD account as security or guarantee for the loan.
- Link to RD bank account s can be created by conveniently linking your bank accounts – Savings – or with a current account that ensures effortless standing instructions or automatic payment on time.Liquidity Liquidity is one of the most important factors to consider. account
- Although RDs impose an early withdrawal penalty, you can opt for a one-year RD account and limit the lock-in period. Therefore, RDs are relatively liquid products.Tax implications Unlike FDs, TDS is not payable on recurring deposits. However, this does not make RD tax free. Interest earned by RD is taxable. But tax is levied if RD interest is more than 10000.NRI can open RD account with NRE account also.
Advantages of Recurring Deposits
- High interest rate: The interest rate on recurring deposits is higher than that of savings accounts. You can use the extra money in your bank account to increase your monthly return.
- Develops Saving Habit: The depositor’s saving habit is directly influenced by recurring deposits. Setting aside a portion of your salary each month teaches you how to carefully manage your money each month.
- Recurring Deposits (RDs) are a great option for homemakers since they may be started with as little as a monthly commitment, and people with low incomes—such as homemakers and pensioners—can easily utilize RDs.
- Senior Citizens: On recurring deposits, senior citizens who are 60 years of age or older receive a greater interest rate. RDs are therefore a profitable savings plan for the elderly and retirees.
- Ease of Saving – RDs are simple to open and administer for people of different backgrounds because it’s easy to save a little amount each month. Even in months with little income, a depositor is less likely to put off their monthly savings.
Recurring Deposit Calculation
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]
Where,
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.
Recurring Deposits: Eligibility Criteria
- To open an RD account, one must be an Indian or an NRI.
- A corporation, partnership, sole proprietorship, commercial organization, or any kind of government agency may also be the depositor.
- The depositor needs a legitimate form of identification.
- Additionally, minor accounts can also be formed for the account.
- Under the guardianship of their parents or legal guardian, minor RD accounts are opened for those under the age of ten.
- The minor can open an RD by presenting identity documentation if they are older than ten.
Documents Required for Recurring Deposits
- The application form that is available online as well as offline at the bank’s branch.
- Recent passport size photograph of the applicant.
- Identity proof and address proof.
- KYC documents.
- Cheque for first instalment and signature on documentation for standing Instruction.
After submission of request form along with required documents, the account is initiated the next working day.
RD for Children’s Future
Many households favor RDs for several reasons, even though SIPs and ELSS offer significantly better returns on investment. These reasons include:
- Hassle-free application
- Minimal monthly contribution
- Assured Returns
- Easy on pocket
Let’s illustrate this with an example.
Mrs. and Mr. Ajay Bhardwaj were blessed with a baby girl on November 10, 2018. They decide to open two recurring accounts, one for 2000 per month for 36 months at a rate of 7.4% and another for a 10-year period at 7%.
The first RD Scheme will generate 80784 by the end of three years, when the child is ready to attend a conventional school. The second RD programme will produce 347,403 after ten years. They intend to FD the amount once the second RD matures and continue to save $2,000 in RDs for the next seven years to develop an education fund for her.
Though we haven’t taken into account additional issues such as inflation or tax implications, if any, the RDs can undoubtedly be utilised for kid education planning without issue. They provide you with guaranteed earnings with the fewest risks associated.
RD for Retirement Planning
Similarly, if you start saving 2000 a month the year you start your job, you can accumulate approximately 10-12 lakh in 30 years at a 7% rate. Because RDs can only be opened for a maximum of ten years, transfer the maturity amount to an FD account or invest in a mutual fund to grow wealth. Judicious use of cash will help you achieve much more.
Undoubtedly, recurring deposits are one of the safest and simplest strategies to accumulate wealth. Online calculators have made it easier for consumers to compare and select the best bargains.
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RD Calculator FAQS
If you are currently a bank customer, requesting an RD account is a simple process. All you need to do is make an online request for RD, and a standing instruction (SI) will be set for the tenure and amount you specify. Alternatively, the bank will send a representative to collect the first cheque for the same. The request will be fulfilled within 24 hours, and the payment will be automatically deducted from the account on the due date each month.
As such, a bank would never limit your RD accounts; nevertheless, you should be aware that interest received on RDs in excess of Rs 10,000 is subject to taxation. If you do not have a pan card and your accounts earn taxable interest on RD, you will be taxed TDS of 20%.
You can redeem your RD account once you have paid the premature withdrawal price. However, unless there is an urgent necessity, it is not recommended that you do so.
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 RDs offer a fair rate of return when compared to FDs, the maturity amount is bigger in Fixed Deposits because interest is compounded quarterly. However, not everyone has a lump sum to benefit from FDs. The acceptability of the financial product is generally assessed based on the depositor’s profile.
If you have irregular income, an RD is more suited; but, if you have a surplus, an FD may be preferable. Both are considered safer than SIPs since they provide a fixed return on the plan.