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Calculate your recurring deposit returns. Plan regular savings and make informed financial decisions.
A recurring deposit calculator is an essential tool for investors who want to grow their savings steadily over time by investing a fixed amount at periodic intervals. Recurring Deposits (RD) are one of the most popular investment options in India as the returns are guaranteed.
This guide will explain what an RD calculator is, how it works, its benefits, and provide an example to help you understand how to calculate the maturity amount of an RD.
FYERS RD Calculator, is an online tool that helps you estimate the maturity amount and the interest earned on your recurring deposit. RDs are a type of fixed-term investment offered by banks and financial institutions, allowing you to invest a fixed amount every month for a pre-determined tenure. The interest is compounded periodically, and the maturity amount is paid out at the end of the term.
The RD calculator considers factors such as the monthly deposit amount, the interest rate, and the tenure of the deposit to calculate the total amount you will receive upon maturity. It simplifies the process, making it easier for investors to plan their savings and understand how their investments will grow over time.
The formula to calculate the maturity amount of a recurring deposit involves compound interest, as the interest on RDs is compounded periodically (usually quarterly). The formula used by a recurring deposit return calculator is:
M = P x [(1 + r/n)^(nt) - 1] / (1 - (1 + r/n)^(-1/n))
Where:
M = Maturity amount
P = Monthly deposit amount
r = Annual interest rate (in decimal form)
n = Compounding frequency (typically 4 for quarterly compounding)
t = Tenure of the deposit in years
Let's assume you want to start a recurring deposit by investing ₹5,000 every month for a period of 2 years at an interest rate of 7% per annum, compounded quarterly.
Monthly Deposit (P): ₹5,000
Interest Rate (r): 7% per annum or 0.07 in decimal form
Compounding Frequency (n): Quarterly (n = 4)
Tenure (t): 2 years
Applying these values to the formula:
M = 5000 x [(1 + 0.07/4)^(4*2) - 1] / (1 - (1 + 0.07/4)^(-1/4))
M = ₹1,29,100
So, at the end of 2 years, your total investment of ₹1,20,000 (₹5,000 per month for 24 months) will grow to approximately ₹1,29,100, earning an interest of ₹9,100.
Using the FYERS RD calculator is simple and convenient. Here’s a step-by-step guide:
1. Visit the FYERS website and navigate to the RD Calculator section.
2. Enter the monthly deposit amount you plan to invest.
3. Input the interest rate offered by the bank or financial institution.
4. Select the tenure of the RD, such as 1 year, 2 years, 3 years, etc.
5. Click on the "Calculate" button to get the maturity amount instantly and the interest earned.
The FYERS RD calculator provides a quick and accurate estimation of your RD returns.
Convenient and Always Ready to Use: You can use the FYERS RD Calculator anytime and anywhere on your mobile or the computer to get interest and maturity amounts on your RD investments.
Accurate and Time Saving: FYERS RD calculator allows you to plug in the values and get accurate and error free figures for your RD investment. It also allows you to save time by getting the calculations in no time.
Keeps You Focused on Your Goals: Whether you're saving for a child's education, a new gadget, or a future vacation, knowing the exact amount you'll receive at maturity helps you stay motivated and disciplined in your savings journey.
By using the RD calculator, you can take control of your savings, make informed decisions, and stay on track with your financial goals effortlessly.
A recurring deposit calculator is an invaluable tool for anyone looking to invest in RDs in India. By using the FYERS RD calculator, you can easily plan your savings, cut manual efforts, and optimize your returns. Start using our RD calculator today to see how your monthly savings can grow over time and secure your financial future.
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Yes, most banks and financial institutions in India offer recurring deposits with tenures as short as 3 months. However, the interest rate for such short-term deposits may be lower compared to long-term RDs.
The interest on a recurring deposit is calculated using the compound interest formula, where the interest is compounded periodically (usually quarterly).
While some banks may allow premature withdrawal of recurring deposits, it is usually subject to a penalty, which could be a reduction in the interest rate or a penalty.
Most banks and financial institutions offer auto-debit facilities from your savings account for RD payments. You can set up a standing instructions with your bank to debit the specified amount every month on a particular date.
Both RD and FD offer guaranteed returns and are low-risk investment options. RD is ideal for those who want to save a fixed amount regularly over time, whereas FD is suitable for those who have a lump sum amount to invest at once.
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