💰 RD Calculator - Calculate Recurring Deposit Returns Online Free
Calculate RD maturity amount, interest earned, and total investment instantly. Free online RD calculator by agecalculatortool.in
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📚 Understanding Recurring Deposits (RD)
A Recurring Deposit (RD) is a systematic savings scheme where you deposit a fixed amount monthly and earn interest at a predetermined rate. RDs are offered by all major banks and post offices in India, making them ideal for building savings discipline.
How RD Interest Works
RD interest is calculated using quarterly compounding as per RBI guidelines. Each monthly installment earns interest for the remaining tenure. The first installment earns interest for the longest period (full tenure), while the last installment earns for the shortest. This makes RD returns slightly different from simple interest calculations.
RD vs FD - Key Differences
While both offer guaranteed returns, RDs allow monthly investments (starting from ₹100) while FDs require a lump sum. FDs generally offer slightly higher interest rates. RDs suit salaried individuals wanting to build savings systematically. FDs work better for those with lump sum amounts.
Tax on RD Interest
RD interest is fully taxable as per your income slab. TDS applies if total interest exceeds ₹40,000 (₹50,000 for seniors). Unlike PPF or ELSS, RD offers no tax benefits under Section 80C.
❓ RD Calculator - FAQs
Q1: How is RD interest calculated?
RD uses quarterly compounding per RBI norms. Each monthly installment earns compound interest for its remaining tenure. The formula accounts for varying durations of each deposit.
Q2: What is the minimum RD amount?
Minimum RD is typically ₹100-500 per month depending on the bank. Post office RD starts at ₹100/month. There's no upper limit for monthly deposits.
Q3: Can I withdraw RD before maturity?
Yes, premature withdrawal is allowed with a penalty (typically 1% lower interest rate). Some banks also charge a small penalty fee. Avoid early withdrawal for better returns.
Q4: Is RD better than SIP?
RD offers guaranteed returns (6-7%) with zero risk. SIP in mutual funds can give 10-12% returns but has market risk. RD suits conservative investors. SIP suits those seeking higher returns and willing to take moderate risk.
Q5: Is this RD calculator free?
Yes! Our RD calculator is 100% free. No registration needed. Calculate RD returns unlimited times for different banks and tenures.