logo

Download the App Now!

raise
raise
Home
CalculatorsRD Calculator
Career

RD Calculator

Calculate investment returns and maturity value earned on recurring deposits schemes in India with our recurring deposit calculator online.

Monthly Investment

₹ 500
₹ 15,00,000

Expected Return Rate (p.a)

1%
15%

Time Period (in months)

1 month
120 month

Investment Amount

₹1,50,000

Estimated Returns

₹1,747

Maturity Value

₹1,51,747

Compound your wealth with SIP in Mutual Funds

*Investing in the securities market carries risk. Please do your own due diligence before investing.

What is a Recurring Deposit?

Recurring deposits are an investment instrument that helps the investor in saving their money on a regular monthly basis. RDs are considered to bring disciple to an investor's life as it inculcates a regular investment habit in them. Almost all the banks in our country provide RD accounts just like FD accounts. Both Recurring Deposits and Fixed Deposits mostly work on similar terminology. The main difference is that lump sum deposits are made under Fixed Deposits whereas Fixed monthly deposits are made under Recurring Deposits.

Recurring Deposits offer an attractive interest rate that varies from one bank to another just like Fixed Deposits. The calculation of RDs is complex and hence RD Calculators are used by banks to calculate the amount to be received at the time of maturity.



What is RD Calculator?

Recurring means continuous. Recurring deposits are the continuous deposits made to the bank for a defined period of time to save your money. The interest rate remains constant throughout the tenure of the RD, making RD Calculation a little less complicated.

RD Calculator helps in the computation of returns in a hassle-free manner within a few seconds. It is quite easy when compared to manual RD Calculation as all you have to do is put in some details related to your RD on the calculator, and it reflects the amount it will accrue after maturity.



How does an online RD Calculator work?

Interest on RD is compounded quarterly, in most banks. The formula for this is :

M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) ) where,

M = Maturity Value
R = Monthly Installment
n = Number of quarters
I = Rate of interest/400

Here is an example for easy understanding:

Let us say Sudhanshu starts investing ₹10,000 in a recurring account for a tenure of 1 year (4 quarters).
The interest rate that his rd account offers is 8%. Now let us use the above formula to calculate the final maturity amount.

Maturity amount = 10,000*(1+ (0.08/4)) ((4*12)/12) = ₹ 10,824.32
Maturity amount = 10,000*(1+ (0.08/4)) ((4*11)/12) = ₹ 10,753.10

Similarly we need to calculate for all remaining months till 1 month
Caculation for 1st month look like this = 10,000*(1+ (0.08/4)) ((4*1)/12) = ₹ 10,626.58

If you sum like above for all the months the total maturity amount that you will arrive at is ₹ 1,25,293



Benefits of RD

  • RD can be used as collateral for taking loans. You can take up to 80-90% loans on your RD amount
  • Premature withdrawals are allowed under RD. However, this may come with a small penalty
  • RD schemes allow for a higher rate of interest (usually 0.5% more) for senior citizens
  • Minors can also open RD accounts under the supervision and guardianship of their parents
  • The tenure is also flexible and you can choose from 7 days to 10 years depending on your convenience
  • RD schemes allow you to save money on a regular basis and the minimum deposit amount can be as low as RS. 10


Tax Benefits on RD

  • Similar to other personal tax-saving and investment instruments, Recurring Deposit schemes also attract taxes. A TDS of 10% is deducted on the returns accrued from an RD if the total interest exceeds Rs. 10,000 in a single financial year.
  • Compare this to the SIP scheme and you can see that SIPs are more beneficial in the long term. Since long-term gains from equity are tax-free, any SIP which invests in ELSS (Equity Linked Mutual Funds) is also tax-free after one year.


What are the min and max tenures to open a bank RD?

Recurring deposits are one of the safest and best investment options, which inculcates a habit of regular investments in the investors. In India, many banks offer recurring deposits whose interest rates vary from 4 to 7.5%. The minimum amount that one can invest in an RD account is ₹10. The minimum and maximum tenure to open a bank rd are 6 months and 10 years, respectively. The invested amount is compounded on a quarterly basis. In recurring deposits, premature and midterm withdrawals are not allowed. In case of premature withdrawal, some amount will be charged as a penalty.



What are the factors affecting RD interest rates?

RBI interest rate policy is the primary factor that affects the interest rate (including recurring deposit interest rates). RBI revises the interest rates every 3 months. RBI considers many factors like inflation, country economy stability, etc., before revising the rates. In case of an economic downturn, the RBI reduces the interest rate. this is bad for recurring deposit investors but good for businesses. In the case of good economic conditions, it will increase the rate. This scenario is good for RD depositors because they get more returns because of high rates. Banks have the freedom to set their interest rate for their customers. Banks, however, cannot offer the rate they wish due to competition and interest rate policy.







Invest & Trade with a Trading
Platform That's #MadeForTrade

Open your Dhan Account in minutes!
Start Now
border
logo

Join us on

community logo

Follow us on

twitter
telegram
Linkedin
youtube
instagram
facebook

built with love
for Indians who love to invest & trade

raise

We are part of Raise Financial Services

raise
raise

Explore  |  Sitemap


*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:


This means that with Dhan, you'll be able to start:


Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2024 Moneylicious Securities Private Limited. All rights reserved. CIN: U74999MH2012PTC433549 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India.
Corporate Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


Disclaimer: All communications with the client in the chat section are for support purposes only, and any commitments or statements made by the agent (human or virtual) shall not be binding on the company.


DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.


Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | UCC Advisory | e-Voting for Shareholders | NCL Client Collateral details |
MCXCCL Client Collateral details

Important Information: Terms of Usage | Disclaimers | Privacy Policy | Grievances | Risk Management Policy | Risk Disclosure | Advertisement Disclaimer | Saarthi 2.0 Mobile App for Investors