A recurring deposit is a type of deposit where a fixed instalment amount is invested every month, the catch being all these instalments mature at the same time. It is like opening a new fixed deposit every month with each fixed deposit having the same maturity date. Recurring deposit means one deposits fixed sum of money at a recurring period till maturity.
A recurring deposit is an excellent way of saving small sums of money for a particular purpose. Since all the funds mature at the same time, it can be used to collect funds for a specific purpose, especially for people who can’t take out too many funds all at once to invest in a fixed deposit.
One need not deposit in an RD scheme to find out the final maturity value. Most of the banking operations have completely shifted online which makes it very convenient to find out the rates of interest charged by different banks on their recurring deposits. Using a recurring deposit calculator, it is possible to find out the maturity value of the recurring deposit, and consequently, one can earn the interest on the recurring deposit.
Using an RD calculator is very simple. It requires a few inputs:
• Instalment amount:
This instalment amount can be any amount higher than Rs. 500. Most lenders set their minimum deposit amount at Rs. 500, however, it is advisable to recheck this amount with the bank. The recurring deposit instalment remains fixed for the entire duration of the deposit, so make sure that the instalment amount is something that can be easily set aside every month.
• The term of the recurring deposit:
Banks offer several different options for recurring deposits ranging from 6 months to 120 months. The rate of interest depends on the tenure of the recurring deposit.
• Date of commencement of deposit:
This date means from when the recurring deposit will start. The maturity date of the recurring deposit depends on when the deposit will start.
• Whether the investor is a senior citizen or not:
Senior citizens earn higher interest as compared to other depositors. Most lenders offer 0.5% higher interest on recurring deposits to senior citizens.
Steps to use an RD interest calculator:
• Input the details that a standard RD calculator requires.
• Submit the details
• The calculator will calculate the maturity value and also the interest earned on the recurring deposit.
An RD interest calculator helps to find out which recurring deposit combination can give maximum yield. This can help you plan your investments in the best possible way.
A recurring deposit is an excellent way of saving small sums of money for a particular purpose. Since all the funds mature at the same time, it can be used to collect funds for a specific purpose, especially for people who can’t take out too many funds all at once to invest in a fixed deposit.
One need not deposit in an RD scheme to find out the final maturity value. Most of the banking operations have completely shifted online which makes it very convenient to find out the rates of interest charged by different banks on their recurring deposits. Using a recurring deposit calculator, it is possible to find out the maturity value of the recurring deposit, and consequently, one can earn the interest on the recurring deposit.
Using an RD calculator is very simple. It requires a few inputs:
• Instalment amount:
This instalment amount can be any amount higher than Rs. 500. Most lenders set their minimum deposit amount at Rs. 500, however, it is advisable to recheck this amount with the bank. The recurring deposit instalment remains fixed for the entire duration of the deposit, so make sure that the instalment amount is something that can be easily set aside every month.
• The term of the recurring deposit:
Banks offer several different options for recurring deposits ranging from 6 months to 120 months. The rate of interest depends on the tenure of the recurring deposit.
• Date of commencement of deposit:
This date means from when the recurring deposit will start. The maturity date of the recurring deposit depends on when the deposit will start.
• Whether the investor is a senior citizen or not:
Senior citizens earn higher interest as compared to other depositors. Most lenders offer 0.5% higher interest on recurring deposits to senior citizens.
Steps to use an RD interest calculator:
• Input the details that a standard RD calculator requires.
• Submit the details
• The calculator will calculate the maturity value and also the interest earned on the recurring deposit.
An RD interest calculator helps to find out which recurring deposit combination can give maximum yield. This can help you plan your investments in the best possible way.
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