šŸ’° Recurring Deposit (RD) Calculator

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Calculate RD Maturity Amount

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a type of term deposit offered by banks and financial institutions in which individuals deposit a fixed amount every month for a predetermined tenure. At the end of the term, the depositor receives the total deposited amount along with the interest earned.

Benefits of Using an RD Calculator

How the RD Calculator Works

This tool uses the compound interest formula where monthly deposits earn interest every month until maturity. The interest is compounded on a monthly basis using the formula:

M = R Ɨ [(1 + i)n - 1] / (1 - (1 + i)-1)

Where:
M = Maturity value
R = Monthly deposit
i = Interest rate per month
n = Total number of months

Types of RDs Supported

Frequently Asked Questions (FAQs)

How is interest calculated on an RD?

Interest is compounded monthly and calculated on the monthly deposit amount for the remaining duration until maturity.

Can I break my RD before maturity?

Yes, but premature withdrawal may lead to lower interest rates and penalties depending on the bank’s terms.

Is RD better than FD?

FDs are better for lump-sum investments, whereas RDs help build savings gradually with fixed monthly contributions.