RD Calculator Online – Know Your Returns in Seconds

What is a Recurring Deposit?

A Recurring Deposit (RD) is a term deposit scheme where you invest a fixed amount monthly for a predetermined period. It's like a Systematic Investment Plan (SIP) but for fixed deposits with guaranteed returns.

Key features:

• Fixed monthly investment
• Guaranteed returns
• Flexible tenure (6 months to 10 years)
• Loan against RD available
• Premature withdrawal allowed

How to Use the RD Calculator

Using the calculator is simple:

1. Enter the monthly deposit amount
2. Enter the interest rate (annual)
3. Enter the tenure (months/years)
4. Click Calculate
5. View maturity amount and interest earned

How RD Returns are Calculated

RD uses compound interest with monthly compounding:

Formula:

M = P × [(1 + r/n)^(nt) - 1] / (1/n)
Where:

• M = Maturity Value
• P = Monthly Installment
• r = Annual Interest Rate
• n = Compounding frequency (12 for monthly)
• t = Time in years

RD Interest Rates

RD interest rates vary by institution:

• Bank RD: 5.5% - 7.5% p.a.
• Post Office RD: 6.5% - 7.0% p.a. (currently 6.7%)
• Senior Citizen RD: 0.5% additional

Rates are subject to change and may vary based on tenure.

Benefits of RD Investment

✔ Guaranteed returns with no market risk
✔ Disciplined savings habit
✔ Flexible tenure options
✔ Loan against RD available (up to 90%)
✔ Premature withdrawal possible (with penalty)
✔ Senior citizens get additional interest

Who Should Use This Calculator?

This tool is useful for:

• Salaried individuals
• Small business owners
• Those seeking guaranteed returns
• Retirement planners
• Parents saving for children's education