When planning for your dream vacation, buying a gadget, or any other coveted purchase, a little planning and savings go a long way. Additionally, opening an RD Account and depositing a fixed sum regularly can help your dreams become a reality.
A Recurring Deposit, or RD, is a popular investment tool in India. It is considered safe and offers assured and moderate returns to depositors. It also enables you to choose from flexible investment amounts, which might be as low as Rs. 1,00 and lock away your deposit for variable tenure ranging between six months to 10 years. However, an RD requires you to invest in a disciplined manner, and before you open an account, you should know how much to invest.
This knowledge ensures you get your hands on the top-end gadget or go on a vacation you have been dreaming about. However, if you cannot decide on the deposit amount, an RD Calculator can help.
About RD calculator
An RD is a continuous investment. Hence, the returns on these may be complicated for investors to track. Additionally, the RD interest rates are compounded quarterly and involve numerous variables, making the calculations complex. This is when an online calculator can be a boon. An RD Calculator is an online tool that does away with the problems of manually calculating the returns from an RD.
It shows you the sum you should set aside to match your financial goals and lets you know the maturity value of your deposit at the end of its tenure. Thus, this ingenious tool guides you on working best with your resources to reach your investment goal while handling your current needs every month.
How to use it?
To use an RD, follow these basic steps:
- Choose a reliable RD calculator online
- Enter the deposit amount you wish to invest in the RD every month
- Adjust the interest rates based on your investment tenure
- Enter the term you want to choose
- Next, click compute, and the maturity amount and total interest accrued will be visible immediately
You can use the Recurring Deposit calculator and try various permutations and combinations of the values to match your RD with your investment goal.
Advantages
Some incredible advantages of utilising an RD calculator include the following:
- It performs the calculations within seconds, saving a lot of time.
- The calculator is freely available online, and you can use it as often as you want.
- While you can easily open an RD using a Banking app, the online calculator lets you decide how much you should set aside monthly and accurately estimates the maturity value.
- You can access the calculator anywhere and anytime.
