## RD (Recurring Deposit) Myitronline Calculator

Repetitive deposits (RDs) are an investment tool similar to random deposits. However, you should make a fixed monthly income for RDs, as opposed to the total amount for FDs. RDs create a habit of investing regularly among earners. This also includes discipline when it comes to savings. Refunds are given to most banks and financial institutions.

Updated on:

## 1. RD Calculator (Recurring Deposit)

Repetitive deposits (RDs) are an investment tool similar to random deposits. However, you should make a fixed monthly income for RDs, as opposed to the total amount for FDs. RDs create a habit of investing regularly among earners. This also includes discipline when it comes to savings. Refunds are given to most banks and financial institutions.
RD returns calculation can be very difficult for the average investor to always accurately find. This is where the RD calculator can prove to be very useful.

A recurring deposit, as the name suggests, is an ongoing investment. Refunds on these deposits can be a challenge for tracking investors. Interest is compounded quarterly, and there are several variables involved, which makes the figures multiplied.
The RD deposit calculator eliminates the problem of manual refunds by hand and enables the investor to know the exact amount of the deposit he will receive after the due period.
The only consideration is that the investor must personally implement the TDS reduction. According to the new RBI protocol, RDs are also responsible for TDS extraction; however, there is no similarity in its use in all financial institutions, which is why RD calculators ignore it.
Apart from that small caveat, the RD value calculator gives the investor the following benefits:

• The calculator enables investors to plan their future investments more clearly by giving them the right amount to invest.
• It is ready to use and saves a lot of time for investors, who can use it productively.
• The accuracy of these calculations is beyond question. Accurate estimates are very important in financial planning.

## 3. How to use this RD Calculator?

• Use the slider to select a monthly value.
• Choose a time in the month using the slide.
• Move the slider and select Interest Rate.
• Recalculate your RD at any time by changing the input slides.
• The value of the RD will be calculated as soon as you move the slides.

## 4. How is RD interest calculated?

Interest on RD is compounded quarterly, in most banks. The formula for this is :
M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) ) In this,

• M = Maturity Value
• R = Monthly Installment
• n = Number of quarters
• I = Rate of interest/400

## 5. Benefits of RD

• RD can be used as collateral for a loan. You can take out a loan of up to 80-90% of your RD value.
• Early withdrawal is allowed under RD. However, this may come with a small fine.
• RD schemes allow higher interest rates (usually 0.5% higher) in adults.
• Younger ones can also open RD accounts under the supervision and supervision of their parents.
• The working time is also flexible and you can choose from 7 days to 10 years depending on your convenience.
• RD schemes allow you to save money on a regular basis and the minimum deposit amount can be as low as RS. 10. #### Will I have to pay a penalty in case there is a delay in the monthly deposit? Yes, a penalty will be levied in case there is a delay in the monthly payment. Depending on the bank and the period of delay, the penalty that must be paid will vary. #### Is the interest that is generated from the RD account taxable? Yes, the interest that is earned from an RD account is taxable. #### What are the different methods by which I can open an RD account? The different methods by which you can open an RD account are mentioned below:

• By visiting the branch
• Mobile Banking
• Internet Banking #### How is the interest earned on an RD account calculated? The interest that will be earned on an RD account is calculated by applying the compound interest formula. Even though deposits must be made every month, the interest is compounded quarterly. #### Is there any additional interest provided for senior citizens? Yes, most banks provide an additional interest rate for senior citizens. #### Which form should I submit if I wish to avoid TDS? You will need to submit Form 15H or 15G to avoid deduction of TDS. #### Which is the formula used to calculate compound interest on Recurring Deposits? The formula used is A = P(1+r/n) ^ nt, where ‘A’ represents final amount procured, ‘P’ represents principal, ‘r’ represents annual interest rate, ‘n’ represents the number of times that interest has been compounded, ‘t’ represents the tenure. #### Is the interest paid on RDs compounded quarterly? Yes, the interest paid on RDs is compounded quarterly. #### For calculation of simple interest, which formula is used? The formula used for calculation of simple interest is I = P x R x T where ‘I’ stands for Interest, ‘p’ stands for principal, ‘r’ stands for annual interest rate, and ‘t’ stands for tenure of the deposit. #### When is simple interest calculated with regard to recurring deposits? If you open a recurring deposit account in the middle of an ongoing financial quarter say in the month of May, the deposited amount will earn simple interest until the end of June. Following that, the interest will be compounded as a new quarter starts. Krishna Gopal Varshney is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Co-founder & CEO