If you are looking for financial savings cum investment opportunities, you may want to look closely at the recurring deposit scheme. With a recurring deposit scheme, you can earn interest on top of any savings amount that you deposit in a recurring account. RD is often confused with FD. But unlike FD, Recurring deposit requires you to make monthly deposits, making it ideal for salaried individuals.
The recurring deposit allows individuals to deposit a small amount from time to time. The savings scheme can go a long way toward ensuring you have enough savings for your future.
But, before you make any investment, it’s highly recommended that you use free and easy tools such as a recurring deposit calculator.
Now that you know what is a Recurring Deposit, let’s take a closer look at what is a recurring deposit calculator, how it works, and how you can benefit from this calculator.
What is a Recurring Deposit Calculator?
The recurring deposit calculator allows you to calculate the maturity amount you will receive at the end of the deposit’s tenure. You can also calculate the interest the recurring deposit will be accumulating.
A recurring deposit calculator is available free of cost and is offered by many banks and websites. The recurring deposit calculator does the calculation in a matter of seconds. However, if you decide to do it manually, it would be time-consuming.
The calculator computes the result according to the information you enter, such as tenure of deposit, amount of each monthly deposit, interest, etc., to calculate the maturity amount. It does all these calculations without any error.
4 Reasons Why You Should Start Using RD Calculator
Here are 4 significant reasons why you should use an RD calculator.
- A recurring deposit calculator provides the exact interest amount and the total maturity amount of your recurring deposit investment. It also allows you to manually adjust the deposit tenure for additional deposit money in the future. You can plan your investment and see just how much of an increase you will receive in interest if you keep depositing the amount for a longer duration.
- It uses a proper mathematical calculation to provide accurate results. It saves you a lot of time and is also very easy to use. It uses the equation, A = P(1 + r/n) ^ nt to calculate the interest value. In case you want to do the calculations yourself, let us tell you about the specifics of this equation. In this equation, “A” refers to the final amount you will receive at the end of the tenure of your recurring deposit. “P” refers to the principal amount you will invest monthly. The “r” refers to the rate of interest and “t” to the tenure of the Recurring deposit. Lastly, the “n” refers to the number 0f time you will have to deposit in the entire tenure of this recurring deposit.
- With these recurring deposit calculators, new investors such as yourself can form a proper plan for your investments.
- If you use Recurring deposit calculators provided by your bank, then the interest rate will be provided by default, so you won’t have to look around various sites to find the rate of interest.
How To Use Recurring Deposit Calculator Online?
Follow these simple steps to use your preferred bank’s Recurring deposit calculator-
- Go to your bank’s website.
- Search for the Recurring deposit calculator on your bank site and click on it.
- Once the Recurring deposit calculator is accessible, enter all the details such as the deposit amount, tenure, etc. Click on the calculate button.
- After you click on the button, the amount of interest and the maturity amount will be displayed on the screen.
Recurring deposit calculators are a must-have tool for new investors. It will help you figure out interest amount and maturity amount and save a ton of your time.
