A recurring deposit is a form of investment that enables investors to save money through monthly payments. This money reaps attractive interest and is generally more flexible in comparison to fixed deposits. If you want a safe investment that allows you to save money for rainy days, this proves very convenient. However, if you earn an interest of more than Rs. 10,000 in a year, you attract a 10% tax deduction at source.
How to Use an RD Interest Calculator
Here are the steps to use an RD Interest Calculator-
• You can calculate the amount you get on maturity, i.e. the sum of principal and interest you get at the end of the recurring deposit term
• You must input values such as deposits every month, tenure, and rate of interest to get an instantaneous result
• Recurring deposits are compounded on a quarterly basis. The rate of interest varies between 7% and 9%. The interest may be higher for senior citizens.
• The formula used for calculation is M = Rx[(1+i)^n-1]/[1-(1+i)^(-1/3)]. Here M stands for the amount you will receive on maturity. R is the instalment you pay every month and ‘n’ is the number of quarters. ‘i’ stands for the rate of interest.
• You can alter the values of the variables to come at a target maturity amount that meets your financial goals
• There is no restriction on the number of times you use the calculator
• The RD interest calculator will not show the TDS eligible for deduction
Advantages of Using an RD Interest Calculator
The multiple advantages of using an RD Interest calculator are-
• You can calculate the instalments you need to meet every month to fulfil any upcoming financial requirements
• You can calculate the time for which you need to open a recurring deposit to meet a short-term goal
• If you pay Income Tax, using an RD calculator helps you predict the changes in the amount of taxes you must pay
• You get an idea about how much you can grow your wealth with a recurring deposit
• You get to compare the recurring deposit schemes offered by various banks and can choose the one, which profits you the best
If you are saving for a financial goal such as annual education fees, a recurring deposit is a very suitable choice. Although your liquidity is limited, you get the opportunity to accumulate every month. Using the Recurring Deposit calculator, you can ensure that you meet the financial goal within the time constraint. An incredibly handy tool, you can use an RD calculator free of cost. Since the calculation of maturity amount is the same irrespective of the bank in which you have your account, it has a universal application.
How to Use an RD Interest Calculator
Here are the steps to use an RD Interest Calculator-
• You can calculate the amount you get on maturity, i.e. the sum of principal and interest you get at the end of the recurring deposit term
• You must input values such as deposits every month, tenure, and rate of interest to get an instantaneous result
• Recurring deposits are compounded on a quarterly basis. The rate of interest varies between 7% and 9%. The interest may be higher for senior citizens.
• The formula used for calculation is M = Rx[(1+i)^n-1]/[1-(1+i)^(-1/3)]. Here M stands for the amount you will receive on maturity. R is the instalment you pay every month and ‘n’ is the number of quarters. ‘i’ stands for the rate of interest.
• You can alter the values of the variables to come at a target maturity amount that meets your financial goals
• There is no restriction on the number of times you use the calculator
• The RD interest calculator will not show the TDS eligible for deduction
Advantages of Using an RD Interest Calculator
The multiple advantages of using an RD Interest calculator are-
• You can calculate the instalments you need to meet every month to fulfil any upcoming financial requirements
• You can calculate the time for which you need to open a recurring deposit to meet a short-term goal
• If you pay Income Tax, using an RD calculator helps you predict the changes in the amount of taxes you must pay
• You get an idea about how much you can grow your wealth with a recurring deposit
• You get to compare the recurring deposit schemes offered by various banks and can choose the one, which profits you the best
If you are saving for a financial goal such as annual education fees, a recurring deposit is a very suitable choice. Although your liquidity is limited, you get the opportunity to accumulate every month. Using the Recurring Deposit calculator, you can ensure that you meet the financial goal within the time constraint. An incredibly handy tool, you can use an RD calculator free of cost. Since the calculation of maturity amount is the same irrespective of the bank in which you have your account, it has a universal application.
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