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A Recurring Deposit (RD) is a popular investment tool offered by banks that allows you to save a fixed amount of money every month for a predetermined period. It is an ideal choice for individuals who want to build a corpus through disciplined monthly savings without the risk of market volatility.
Our RD Calculator helps you estimate the maturity value of your investment, including the interest earned, based on current banking interest rates.
To calculate your RD returns, simply enter the following details:
RDs are a favorite among conservative investors for several reasons:
Banks typically use the formula for compound interest, where interest is calculated on the balance every quarter. The formula used is: M = R × ((1 + i)n - 1) / (1 - (1 + i)-1/3), where M is maturity value, R is monthly deposit, i is the interest rate, and n is the number of quarters.
Yes, the interest earned on a Recurring Deposit is taxable as per your income tax slab. Banks may also deduct TDS (Tax Deducted at Source) if the interest exceeds a certain threshold in a financial year.
No, once an RD is opened, the monthly deposit amount remains fixed for the entire tenure. If you want to save more, you would need to open a separate RD account.