RD calculator is another important calculator that will be useful to you because here you can calculate RD or Recurring Deposit and if you do not know what exactly is RD or Recurring Deposit then you go ahead and keep reading this article on Recurring Deposit interest calculator. In this article you learn how to calculate RD easily.
What is RD or Recurring Deposit?
RD full form is Recurring Deposit and this is a deposit or savings option that many banks and post offices offer. There are many uses of RD and that is why people deposit money in this kind of deposit. It is also another way to invest your money and save it for future use.
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Eligibility criteria for Recurring Deposit
Every Indian, NRI, HUF or Hindu Undivided Families are eligible to use RD. So as you can see there is no limit for people to save money by using recurring deposit scheme from post office or banks.
Financial institutions also allow RD account for children but guardian or parent or parents have to handle funds in child RD account for some years and in this way no one misuses funds.
Rate of interest of RD
Interest rate or rate of interest on RD account is one more feature because of which people use RD scheme provided by banks or post offices. You however understand one more fact that rate of interest keeps changing and it also depends on the banks or post offices or financial institutions that provide RD scheme to customers.
Also find out method to calculate return on investment with ROI calculator here.
How to use RD calculator
It is simple to use Recurring Deposit calculator and if you wish to use this calculator then you follow below rules on steps to use Recurring Deposit calculator –
- First you select type of customer whether it is normal or senior citizen
- Next you enter monthly deposit and here you remember that it will be monthly deposit amount
- In third field you select savings term in year and months or simply enter the duration of depositing money in account
- You also have to specify rate of interest because every bank has different rate of interest on RD
- Finally you click on ‘calculate’ tab to know the answer
Thus in such a simple way you find out how much interest you earn on your monthly deposits. You can see total amount under ‘maturity amount’ tag.
Some banks also give special benefits to senior citizens so before you start depositing money you can speak to concerned people in the bank and then continue depositing money in RD account.
On other hand there is a formula by using which you can calculate RD easily. Moreover this formula helps you to know how to calculate recurring deposit interest. It is a simple formula that you should use or else you may directly use above calculator to know the answer to your queries.
Formula to calculate RD
In the above formula ‘M’ is the maturity value of RD or recurring deposit and ‘n’ is number of deposits or duration of deposits. Besides there is ‘R’ which is monthly recurring deposit that you must pay and ‘i’ is the rate of interest that you get on recurring deposit.
Hence when you add values to the above formula you get result as to how much will be the maturity amount at the end of the tenure or you may simply enter values in above RD calculator tool to get the answer.
Apart from recurring deposit calculator tool you can know how to use EPF calculator tool that helps you to have idea on how much will be your provident fund amount when your retire. Know more about Employees Provident Fund calculator here.