About RD Calculator
A Recurring Deposit (RD) calculator helps you estimate the maturity value of your regular monthly investments. It's perfect for those who want to save a fixed amount every month and earn interest on their savings.
Formula Used
M = P × [(1 + r/n)^(n×t) - 1] / (1 - (1 + r/n)^(-1/n))
Where M = Maturity Amount, P = Monthly Deposit, r = Annual Interest Rate, n = Compounding Frequency, t = Time in Years
Tips & Best Practices
- RD is ideal for building a savings habit
- Missing a monthly installment may attract penalties
- Interest rates are usually similar to FD rates
- You can take a loan against your RD (up to 90%)
- Tax-saving RDs are available with a 5-year lock-in
Frequently Asked Questions
What is a Recurring Deposit?
A Recurring Deposit is a savings scheme where you deposit a fixed amount every month for a predetermined period, earning interest on your savings.
What is the minimum RD amount?
Most banks allow RD accounts with as low as Rs. 100 per month, making it accessible for everyone.
Can I change my RD monthly amount?
No, once an RD is opened, the monthly deposit amount cannot be changed. You would need to open a new RD for a different amount.
What happens if I miss an RD installment?
Missing installments may result in penalties or even closure of the account in some banks. Most banks allow a grace period of a few days.