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Recurring Deposit

RD is one of the famous investing schemes in India. The salary holders can use this Recurring Deposit for saving their money monthly in banks. Nowadays many banks are offering RD accounts. It does not require a large amount of money. The users should deposit the RD amount monthly without any fail. Therefore, the applicants of Recurring Deposit can also calculate their maturity amount. Hence, to know your maturity amount, you have to use RD Calculator. It is very helpful for you to calculate the Recurring Deposit maturity amount.

One should know the usage of RD Calculator to check their maturity amount. Therefore, we are providing some steps in the below sections about the usage of the Recurring Deposit Calculator. So, the interested people can follow the below sessions to know the full information about Recurring Deposit.

RD Calculator

The RD Calculator is mainly used to calculate the maturity amount. To calculate the Recurring Deposit maturity amount, you have to know the RD Interest rates and tenure periods. The users can know their RD maturity amount details by simply entering the details like interest rate, tenure period, investing amount, etc., in the Recurring Deposit Calculator. The applicants can also calculate the maturity amount by using a formula. Hence, follow the below topics to know the RD Calculations by using formula.

How to Use RD Calculator

• Enter the necessary details like investing amount, interest rate, tenure period, etc.
• Click on submit button.
• Finally, you RD maturity amount displayed on the screen.

To calculate the maturity amount online follow the above steps. The maturity amount of Recurring Deposit is calculated by knowing the interest rates and term period of RD. You have to see the below sections to know those details. Hence, we are providing the maturity amount calculations on this page. So, check the calculations carefully to know your maturity amount. The interest rate depends on the tenure period. The tenure period is 4 types. They are quarterly one, quarterly 2, quarterly 3, and quarterly 4. For every quarterly period, the compounding occurs.

• April to June is Quarterly 1.
• July to September is Quarterly 2.
• October to December is Quarterly 3.
• January to March is called Quarterly 4.

rdcalculators.com is also providing the RD Instalment Calculator. If you want to check the Installment amount by entering the Maturity Amount, click on the below link.

Simple Interest and Compound Interest Calculations

The users can also utilize the mentioned formulae to calculate the maturity amount of Recurring Deposit. So, based on these factors the RD Maturity amount is calculated. We are providing an example calculation in the below sections. Therefore, the interested people can learn the calculations to know the RD Maturity amount. You can also calculate the same in the online by using RD Calculator. In the online calculator, there is no need to use the formula. It automatically calculates the maturity amount. You have to enter the investing amount, interest rate and tenure period in corresponding columns. If you want to calculate manually, you can use the mentioned formula.

Simple Interest

The formula used to calculate the recurring deposit maturity amount is given below. Therefore, the applicants of RD have to learn the below calculations to know their maturity amount details. You can also try the below formula to calculate your recurring deposit maturity amount.

The Simple interest formula is I = Prt

Where

I = Interest.

P = Principal

r = annual interest rate applicable in decimal.

t = Tenure or time period.

The formula used to calculate the RD maturity amount is M = R[ (1+i)n-1] / 1-(1+i) -1/3

Where

M = Maturity amount

R = Monthly installment.

i = rate of interest divided by 400.

n = number of quarters.

For example: If you invest Rs.1000 in the month of January. Calculate the maturity amount with the help of the provided formulas. The recurring deposits maturity amount is Rs.12,801.90 with an interest rate of 12%.

Compound Interest calculations

The formula used to calculate the Recurring Deposit maturity amount is as the mentioned formulae.

M = R[ (1+i)n-1] / 1-(1+i) -1/3.

The calculations of quarterly, half yearly, monthly and annual compound interest are given below. Therefore, the interested candidates who want to learn those calculations can see the below sections.

Calculation for Quarterly:

The formulae used to calculate the maturity amount for quarterly period is as follows

M = (R[ (1+i)t/3-1] ) / (1-(1+i) -1/3)

Where

R = 5000

i = 8.25

t = 10

First, calculate the I value i = rate of interest/400

= 8.25/400 = 0.020

As a result, M = (5000[ (1+8.25/400)10/3-1] ) / ( 1-(1+8.25/400)-1/3)

Therefore, M = Rs. 51917

Half yearly Calculation:

The formula used to calculate the Half yearly maturity amount is given below

M = (R[ (1+i)t/6-1] ) / (1-(1+i) -1/6)

Where

R = 5000

i = 8.25

t = 10

The formula used to calculate the  I value is i = rate of interest / 600

As a result, M = (5000[ (1+8.25/600)10/6-1]) / ( 1-(1+8.25/600)-1/6)

Therefore, M = Rs. 51897.

Monthly Calculation:

The formula used to calculate the monthly compound interest is

M = (R[ (1+i)t-1] ) / (1-(1+i) -1)

Where

R = 5000

i = 8.25

t = 10

As a result, M = (5000[ (1+8.25/1200)10-1] ) / ( 1-(1+8.25/1200)-1)

Therefore, M = Rs. 51930.

Annual Calculation:

The formula used to calculate the Annual Compound interest is

M = (R[ (1+i)t/12-1] ) / (1-(1+i) -1/12)

Where

R = 5000

i = 8.25

t = 10

As a result, M = (5000[ (1+8.25/100)10/12-1] ) / ( 1-(1+8.25/100)-1/12)

Therefore, M = Rs. 51859.

Difference b/w Simple Interest and Compound Interest

Simple interest is calculated by the principal amount of the loan. But the compound interest has to consider both the principal amount and the interest amount. The simple interest can be determined by multiplying the interest rate and some loan periods in the principal amount. Whereas, the compound interest of RD is determined by multiplying principal amount and yearly interest rate. These are the major differences between the simple interest and compound interest.

Recurring Deposit TDS Interest

Every individual’s who are having a recurring account have to pay tax. The TDS deducts tax every month from the Recurring deposits. From the month of June 2015, the Tax Deduction at Source is applicable for the Recurring Deposits. Therefore, the individuals who want to avoid the tax deduction on your recurring deposit can apply for form 15H/15G. You can also get exemption certificate under 197 section or any other tax exemption certificate from banks. So, take the exemption certificate to avoid the tax deduction.

Features of RD

• The main aim of Recurring Deposit is to inculcating a regular habit of money saving.
• You can also deposit Rs. 10 as a minimum deposit in Recurring Deposit account. Therefore, the minimum amount may vary according to the corresponding banks.
• The tenure period starts from 6 months for recurring deposit. Hence, you can also extend the term period up to 10 years.
• Recurring Deposit interest rates are same as fixed deposit interest rates.
• Also, through RD calculator you can calculate your maturity amount.
• The banks do not allow premature withdrawals. It allows you for closing the RD account before the maturity period with a premature penalty.
• You can also take loans on your recurring deposit maturity amount.
• You can attach the RD account directly to your salary account for saving the money monthly.
• Senior citizens have more advantages and benefits compared to the regular depositors.