## Recurring Deposit Calculator

Recurring Deposit, is another kind of term deposit offered by banks in which people can deposit a fixed amount every month into their account and interest will be earned against their deposit at the rate mentioned while opening the RD account.

#### Recurring Deposit Calculator

Rs.
Years
%

Result:

 Monthly Installment Amount: 0 Number of years: 0 interest rate %: 0 Maturity 0

### Split up of Interest and Deposit made:

RD is similar to making fixed deposits with a difference of making monthly installments instead of one time deposit. Recurring deposit schemes allow customers to build up their savings amount through periodical monthly deposits of a fixed amount over a fixed period of time. The minimum period of a recurring deposit is 6 months and the maximum is 10 years. This can be verified with the bank where you are going to open the RD account.

Recurring Deposit interest rates depend on the duration and the installment amount. In most cases, the Recurring Deposit interest rate is very similar to that of fixed deposits. Please cross check the interest rate with the bank where you are going to open the RD account.

### Benefits of Recurring Deposit

• Very useful for Planning Short Term Goals
• Almost all banks offering online RD features, investing has become easier.
• A Recurring Deposit is an excellent way of ensuring disciplined investing.
• Recurring Deposits earn the same rate of interest as fixed deposits.

### How to use this RD Calculator?

• Deposit Amount: Enter the amount you wish to deposit as in installment.
• Number of years: Enter the number of years you wish to continue the deposit.
• Interest Rate: Enter the RD interest rate offered by the bank. This will vary based on the bank you wish to open the Recurring deposit.

### Recurring Deposit Interest Calculation Formula:

This RD calculator using the below formula in order to calculate the maturity value.

#### M =R[(1+i)n – 1]/[1-(1+i)(-1/3)]

Where,
• M = Maturity amount of the RD
• R = Monthly Installment
• n = Number of quarters (tenure)
• i = Rate of Interest / 400