Financial Calculators

Recurring Deposit (RD) Calculator

The RD Calculator (recurring deposit) can help you determine the maturity value for your RD Investment Account if it grows at a set interest rate and over a certain amount of time.

RD Calculator - Recurring Deposit

made with ❤️ by

Table of contents

What is a Recurring Deposit? What is RD?
How do I use the RD calculator?
Benefits and limitations of RD
What is the difference between fixed deposits and recurring deposits?
What is the RD interest rate calculated?
As the name implies, recurring deposits (or RD accounts) allow you to make incremental deposits and earn a risk-free return at the end. Seriously, if your goal is to save money for a house, consider a biweekly loan. This mortgage schedule allows you to pay little by little and help you reach your goal quicker.

What is a Recurring Deposit? What is RD?

A recurring deposit (RD), is a long-term investment in which you can make regular savings and earn a fixed rate of interest over the period. The deposits are monthly and interest compounds every quarter. Earning individuals can enjoy a fixed interest rate on savings with a recurring deposit account. This is similar to the fixed deposit (FD) investment. A recurring deposit offers flexibility over FD investments because you have the ability to choose how many deposits you would like to make as well as the minimum monthly amount.
You can automate your monthly savings account payments by issuing a standing or automated payment. You can also deposit more money than you have set up in your account at any time. You can save more money and get more returns on your investment at your own speed.
Due to its flexibility, interest rates are very competitive. The term of the RD and the market trends can affect the interest rates. They can range from 5% to 8%. The interest rate will be higher if the term is longer.
To receive the full benefit of compounding interests, you need to make your monthly payments on time. You will lose the initial maturity value if any payments are missed or delayed by the bank.
If you are looking for the best deal on a recurring deposit account then make sure you choose a bank:
  • Premature withdrawals are subject to a small fee
  • This plan offers a high-interest rate for the shortest term.
  • The monthly income scheme is another safe investment option that can provide steady income.

    How do I use the RD calculator?

    Once you know what RD is, the RD calculator makes it easy to use. It requires only three parameters and can be used in very short steps.
  • In the Monthly Deposit field, enter the amount that you would like to deposit each month.
  • Give the RD term, usually between 6 and 10 years.
  • You will receive the interest rate for the RD account that the bank or financial institution offers and voila! Instantly you will receive your results.
  • Benefits and limitations of RD

    RD is a great investment vehicle because of the following:
  • RD is a risk-free, predictable, and stable investment method that is more flexible than a fixed deposit.
  • Without making an upfront deposit, you can earn interest at a fixed deposit rate without having to make a large deposit.
  • RD is easy to set up and convenient, especially if your regular savings account is with a financial institution.
  • RD accounts offer a higher rate of interest than regular savings accounts.
  • RD encourages investors to save money, particularly for salary earners who have multiple financial goals.
  • Low-income earners can maintain an RD account by depositing a minimum amount each month.
  • To earn more, you can make additional monthly contributions that are greater than the minimum amount.
  • Automate your contributions by sending standing orders to the bank or using a post-dated check.
  • A recurring deposit is a deposit that has a fixed rate of interest and whose maturity value is guaranteed when you make regular deposits.
  • Senior citizens may be eligible for preferential interest rates from some financial institutions.
  • Loans can be taken against the RD amount.
  • In an emergency, premature withdrawals can be made.
  • You will still be eligible for interest for the deposit period if you initiate premature RD closing.
  • If you are looking to achieve short-term financial goals, a recurring deposit is a best and most secure way to invest.
  • A minor can save money by setting up an RD. They also get good interest in their savings.
  • Limitations:
  • If you withdraw before your RD matures, you'll pay a penalty and earn less interest.
  • Your earnings are subject to tax, which can reduce your return.
  • Banks cannot allow partial withdrawals of the RD amount.
  • If you wish to contribute more, your deposit must be at least twice the minimum deposit amount.
  • You must repay the loan as a lump sum if you take a loan to your RD.
  • An FD earns you more interest over RD over the long-term because interest accrues starting from the first month.
  • What is the difference between fixed deposits and recurring deposits?

    A recurring deposit allows you to invest small amounts each month at a fixed term and interest rate, while a fixed deposit account lets you invest a lump amount at the same fixed interest rate.

    What is the RD interest rate calculated?

    Calculating RD interest involves first finding the simple interest in the monthly RD deposits and then adding all accrued interest at the end.
    Parmis Kazemi
    Article author
    Parmis Kazemi
    Parmis is a content creator who has a passion for writing and creating new things. She is also highly interested in tech and enjoys learning new things.
    Recurring Deposit (RD) Calculator English
    Published: Tue Jun 14 2022
    In category Financial calculators
    Add Recurring Deposit (RD) Calculator to your own website

    Other financial calculators

    Monthly Salary To Hourly Salary Calculator (pay Calculator)

    Calculate what you earn per hour easily with our calculator! You also learn the important differences between hourly and monthly salary payments!

    Pay Raise Calculator

    Calculate your new salary after pay raise easily with our online pay raise calculator!

    Consumer Surplus Calculator (consumer Surplus Formula)

    Calculate instantly consumer surplus with our online economic calculator!

    Salary Calculator

    The Salary Calculator converts salary amounts into their equivalent values based upon payment frequency.

    Car Loan Calculator

    This is a free calculator that calculates the monthly loan payment of an auto loan. Works with new and used cars!

    Discount Calculator

    Using this online calculator, you can figure out the final price after applying any discounts.

    Cryptocurrency Profit Calculator

    This calculator helps you to see how much money and profit you have made from your investments.

    Ethereum (ETH) Profit Calculator

    Calculate the profits of your Ethereum investments easily with this free investment calculator.

    Dogecoin (DOGE) Profit Calculator

    Calculate the profits of your Dogecoin investments easily with this free investment calculator.

    Bitcoin (BTC) Profit Calculator

    Calculate your investment profits of Bitcoin easily with this free investment calculator.

    Return On Equity Calculator

    This ROE calculator allows you to quickly calculate ROE (return-on-equity) based upon the net income generated as well as the total equity of the company/project.

    Mortgage Calculator

    This is a free tool that will calculate your monthly mortgage payment.

    Ripple (XRP) Profit Calculator

    Calculate the profits of your XRP investments with this free profit calculator.

    Bitcoin Cash (BCH) Profit Calculator

    Calculate the profits for your BCH investments easily with this free investment calculator.

    Litecoin (LTC) Profit Calculator

    Calculate the profits of your LTC investments easily with this free investment calculator.

    Binance Coin (BNB) Profit Calculator

    Calculate the profits of your BNB investments easily with this free investment calculator.

    Equivalent Annual Cost Calculator

    Use this free online tool to calculate the equivalent annual cost, which is a measure of the true cost of owning an asset over its lifetime.

    Annual Income Calculator

    This is an online tool is that calculates how much money you make in a year.

    Return On Investment (ROI) Calculator

    This is a calculator that helps you figure out how much money you will make from an investment.

    Car Depreciation Calculator

    This calculator calculates the cost of depreciation for your car. Estimate the car's value once it has been used.

    Interest Calculator

    Our interest calculator allows you to calculate the interest payments and final balances for not only fixed principal amounts but also periodic contributions.

    CAPM Calculator

    Use this CAPM calculator to explain the relationship between the expected return and the risk of security.

    Financial Markup Calculator

    The markup calculation calculator is a tool for businesses that calculates your sales price.

    Home Loan Calculator (EMI)

    This home loan calculator is free and will allow you to calculate your Home Loan EMI quickly.

    PPF (Public Provident Fund) Calculator

    This financial tool allows you to resolve your queries about the Public Provident Fund account.

    Mutual Funds Returns Calculator

    With this free tool you can calculate the return on investment on mutual funds!

    SIP (systematic Investment Plan) Calculator

    SIP calculators allow individuals to quickly calculate the potential returns of their mutual fund  investments made via SIP.

    CAGR Calculator (compond Annual Growth Rate)

    If you want to estimate the potential return from an investment, the CAGR calculator is the tool for you!

    Ponderal Index Calculator

    This ponderal Index Calculator will provide a more accurate measurement than Body Mass Index.

    Cap Rate Calculator

    The cap rate, also known as the capitalization rate calculator is a tool that anyone who is interested in real property can use.

    Stock Average Calculator (cost Basis)

    This stock average calculator will allow you to calculate the stock price or the average price at which you purchased your stocks.

    Investment Calculator

    You can use the Investment Calculator to calculate a particular parameter for your investment plan. The tabs indicate the parameter to be calculated. To calculate the return rate required to reach a certain investment goal using particular inputs click on the Return Rate tab.

    Reverse Stock Split Calculator

    This remarkable tool will calculate a stock's new value after a reverse stock splitting.

    Electricity Cost Calculator

    The electricity cost calculator allows consumers to estimate their annual electricity costs in an easy-to-use way.

    Common Rent Split Calculator

    This calculator will quickly and efficiently calculate the fair rental amount for each member of your rental unit.

    Commission Calculator

    This online calculator will calculate the percentage-based remuneration.

    Future Value Calculator

    The Future Value Calculator is a smart tool that will quickly calculate the value of any investment at any given moment in the future.

    Startup Valuation Calculator

    The post and pre-money valuation calculator simplifies the math so you can focus on more important tasks when you're negotiating startup valuation.

    Hedge Ratio Calculator For Investments

    This calculator will help you determine the percentage of your investment portfolio that has been hedged against investment risk.

    Sinking Fund Calculator

    The sinking fund calculator helps you to determine how much you need to put aside in order for you to achieve your goal within the specified time.

    Lease Calculator

    Our lease calculator will help you to determine the monthly, and total payment for a lease.

    Debt To Income Ratio Calculator

    The debt to income calculator, or DTI calculator for short, is an invaluable tool for anyone who has taken out any type of loan. This calculator will show you how much debt you have and whether you can afford another loan.

    Payback Period Calculator

    The payback period calculator allows you to estimate how long it will take to make a profit on an initial investment.

    Earnings Per Share (EPS) Calculator

    This tool will guide you in calculating your earnings per share. It also provides you with an exact formula for calculating your EPS.

    Moment Of Inertia Calculator

    The moment-of-inertia calculator can be used to assist you if you are having trouble determining the second instant of area for any common shape (such as a round or a hexagon).

    Future Value Of Annuity Calculator

    The Future Value of Annuity Calculator can be used to find the future value of a set of equal cash flows at a particular date.

    Annual Percentage Yield

    The APY Calculator can be used to calculate how much interest you will earn on an investment made over the course of a year.

    Margin Calculator

    If you're looking to maximize your margins, this calculator will be your best friend. You can calculate the revenue from an item if you know its price and your preferred profit margin percentage.

    Crore To Lakh Converter

    The crore to lakh converter is a handy tool that allows you to convert any number into crores or lakhs.

    Boat Loan Calculator

    This tool will assist you in estimating monthly payments as well as calculating the total price for your dream boat financing.

    Bond Price Calculator

    We aim to help you calculate the bond prices issued by a government or a corporation with this bond price calculator.

    Time And A Half Calculator

    With our time and a half calculator, you can easily find the overtime rates for time and a half, double pay, and triple pay.

    FIRE Calculator - Calculate Early Retirement

    FIRE Calculator — Financial Independence, Retire Early

    Percent Yield Calculator

    The percent-yield calculator will assist you in understanding how percent yield and also show you the percentage yield formula, as well as the definition.

    Diversification Calculator

    Credit Card Payment Calculator

    Calculate your credit card payments easily with our free tool

    Calculate Your Current Ratio Of Assets To Liabilities

    Calculate your current ratio for finance and business!

    Credit Score Calculator

    Try our free and easy to use credit score calculator. Use it to estimate what your FICO credit score might be.

    Dividend Payout Ratio Calculator

    Common Equity Tier 1 (CET1)

    Cost Of Living Calculator To Understand Your Monthly Budget!

    Figure out if you will save or owe money each month with our monthly budget calculator

    Calculate How Much Capital Gains Tax You Will Owe With This Simple Calculator

    Calculate how much capital gains tax you will owe with this simple calculator

    Calculate The Coefficient Of Variation

    Calculate the coefficient of variation to compare two sets of data with different units of measurement