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A recurring deposit is a type of term deposit in which users with a consistent source of income deposit a fixed amount of money into a recurring deposit account on a monthly basis. A recurring deposit account encourages people to save by depositing a predetermined amount each month for a set period of time.
Calculating RD returns after maturity is a time-consuming and difficult task. As a result, a Paytm RD calculator can assist you in calculating the same in a matter of seconds.
What can an RD calculator do for you?
Banks provide a variety of recurring deposits for regular people, children, senior citizens, NRIs, and others; however, the interest rate on these accounts varies. Calculating interest on the basis of RD types may take some time. As a result, an RD calculator eliminates the hassle of manually calculating the sum a user will receive after maturity and displays the result in seconds.
What is the formula to calculate RD interest?
The following formula is used to calculate the maturity value of an RD.
M=R[(1+i) (n-1)]/1-(1+i)(-1/3))
Where, M = Maturity value
R = Monthly Installment
N = number of quarters (tenure)
i = Rate of interest/400
Monthly installment (R )
This is the monthly amount invested in the RD account. The minimum deposit amount varies by bank and can be as low as Rs 10 in some cases.
Rate of Interest (i)
The interest earned is determined by the amount deposited in the RD account, the interest rate offered by the bank, and the term of the RD.
Tenure (n)
It is the time period for which funds are held in the RD account. In general, RD tenure ranges from 6 months to 10 years.
For example, Ved wants to invest INR 5,000 each month for 24 months at an interest rate of 8% per annum. When we enter these values into the formula, we get
M=5,000[(1+8/400) (8-1)]/1-(1+8/400)(-1/3))
M=INR 1,26,369
The maturity value of Ved’s RD investment is INR 1,26,369.
The calculation appears to be simple, but it is not. As a result, an RD interest calculator can save time while providing accurate results.
How to use the RD calculator?
A Recurring Deposit calculator can help you with your calculations. It is very simple to use and provides very accurate results. Investors can save a significant amount of time by using it to calculate maturity amounts from RDs and to compare multiple RDs. Investors can plan their finances more clearly if they use an RD calculator because they will know the exact maturity value of their RD investment.
To use the RD maturity calculator, investors must take the following steps.
- Enter the amount you want to invest on a monthly basis
- The following step is to enter the investment period in years. Enter the tenure using the slider.
- The final step is to enter the RD's interest rate. Enter your interest using the slider.
What are the advantages of the RD calculator?
Following are the benefits of using an RD calculator:
Easy to use: The RD calculator is very simple to use. All that is required is to enter the values for the monthly deposit, the RD rate, and the number of years to invest. The RD Calculator accurately calculates the maturity amount.
Time-saving: Using an RD calculator can help investors save time. It can perform complex calculations in seconds. It saves the investor from having to perform manual calculations.
Future planning: The calculator allows investors to plan their future with great precision because it displays the exact value of their investment.
Accuracy: The calculator displays accurate results when the inputs are correctly entered.
Comparison: RDs are available from banks and other financial institutions. Investors can compare the maturity values of multiple RDs in seconds by using an RD calculator.
Free to use: The Paytm RD calculator is free to use, and the investor can use it as often as he or she wants to calculate the returns on RDs with different tenures and interest rates.
