# RD-calculator

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### RD(Recurring Deposits)

RD stands for a recurring deposit which is recognized by many investors as a safe, risk-free, and guaranteed returns investment.

Total Investment Value Rs.
Rate of Interest (P.A) %
yrs
Total Investment Value 1,00,000
Total Interest Value 34,686
Maturity Value 1,38,042

## What is RD(Recurring Deposits)?

RD stands for a recurring deposit which is recognized by many investors as a safe, risk-free, and guaranteed returns investment. Investors make investments regularly on the basis of every month to save money for their financial goals. A recurring deposit gives the flexibility and freedom to choose the tenure and minimum amount investors wish to invest regularly. RD schemes are more flexible and risk-free than FD.

## How is RD calculated?

Before making any decision related to the investments, It is important to have an estimation of returns, and invested amounts so that the risk of loss can be minimized. RD calculator will assist you in evaluating the expected returns on your investment. Interest in RD is compounded quarterly and it is calculated with the following formula.
M=R[(1+i) (n-1)]/1-(1+i)(-1/3)
Here,

• M = Maturity value
• R = Monthly instalment
• I = rate of interest/400
• N = Tenure ( Number of quarters)

For instance, If Rohit had invested in a recurring deposit of Rs. 3000 per month for 15 months at the interest rate of 9% then his total value will be as follows.

M = 3000
R = 5 quarters
I = 9.00/400
M = 47,775

## How to use myitronline RD calculator?

A recurring calculator helps an investor to plan the financial goals by showing the result of the precise maturity value. Using the myitronline calculator is very easy to use and effortless. It saves your energy by eradicating the manual calculation time and shows accurate results in seconds. Search Myitronline RD calculator, and you will redirect to the page of the RD calculator. You will see three sliders there. You have to set them up as per your preferences.

• The second slider asks you to fill out the rate of interest (P.A.).
• The third slider requires you to put the tenure or time period of investment.

Myitronline calculator will show you the maturity value, the total invested amount along with total interest rate in both numbers and graphical mode.

## What is the eligibility for recurring deposits?

A minor who is above the age of 10 years is eligible to open a recurring account with valid proofs and documents. Any company, corporation, commercial organization, or proprietorship can start recurring deposits. Any organization which comes under the government. A minor who is below the 10 years can open a recurring account but with the guidance and advice of his/her guardians.

## Required documents to apply for RD

An application form can be taken from the bank to which you are applying. You should have Passport size photographs. Proof of identity. Address proof. KYC document if asked by the bank.

## Benefits of RD(Recurring Deposits)

Recurring Deposit (RD) is considered risk-free, elegant and an entire investment that can give you guaranteed returns to achieve your short-term and long-term goals. RD has been so recognized investment option in India because of its assured returns and low-risk possibilities. There are many benefits of RD. Some of them are mentioned below.

• RD is a simple and easy-to-understand investment product with flexible tenures as per the customer's preferences.
• You can withdraw your amount from RD anytime because Recurring deposits are highly liquid. Conditionally you will be charged a small fee by the bank.
• You can start investing in RD with a minimum amount of Rs.10 (for some banks) but mostly banks set an extent of Rs. 500 to 1000.
• The minimum duration of the tenure is 6 months which can go up to 10 years. The recurring deposit provides flexible tenure to the customers.
• RD is reckoned as a risk-free and highly returns guaranteed investment so any individual can fulfill their financial goals.ne calculator will show you the maturity value, the total invested amount along with total interest rate in both numbers and graphical mode.

## What are recurring deposits?

A recurring deposit is a type of investment that instructs a fixed monthly deposit over a specified period of time. After the RD gets maturity, a lumpsum amount with total interest is given to the investor. RD schemes are more flexible and risk-free than FD.

## What is the minimum tenure of recurring deposits?

The minimum tenure of “ in general terms “ recurring tenure is 6 months to 12 months but it can differ from bank to bank also.

## What is the minimum amount to deposit into a recurring account?

The minimum amount to be deposited in a recurring account is Rs.10. This amount can be different as per the preferences of the bank to bank.

## How do banks calculate the maturity amount?

Banks calculate the maturity amount based on the investor’s account type, tenure, and preferred installments.

## Is it possible to cancel RD before the end of the term?

Yes. before the term gets depleted, Cancelling your RD is possible.

## Who is eligible to open RD?

Any individual. A minor who is above the age of 10 years is eligible to open a recurring account with valid proofs and documents. Any company, corporation, commercial organization, or proprietorship can start recurring deposits. Any organization which comes under the government. A minor who is below the 10 years can open a recurring account but with the guidance and advice of his/her guardians.

## Who can invest in RD?

Recurring deposits are flexible so anyone who wishes to invest in RD in order to secure his/her financial future can start investing.

## Is the interest rate on RD taxable?

Yes. The interest rate earned on the recurring deposits is taxable.

## What will happen if I delay the monthly deposit payment?

If you delay paying your monthly installment payment even a day then you will either be imposed a penalty in cash or interest. This imposed penalty can affect your maturity amount.

## Where I can open a Recurring Deposit Account?

A recurring deposit account can be opened in all banks like SBI bank, HDFC bank, Canara bank, etc. This process can be done online mode also if the desired bank has an online facility.

## Is RD better than sip?

It depends on your preferences and financial goals. A recurring deposit gives the flexibility and freedom to choose the tenure and minimum amount investors wish to invest regularly. A SIP is based on the concept of regular investment. You can invest in your preferred fund scheme every quarter, week, or month under the SIP systematic investment plan.

## Which is better FD or RD?

A recurring deposit gives the flexibility and freedom to choose the tenure and minimum amount investors wish to invest regularly. RD schemes are more flexible and risk-free than FD. While FD is believed to give higher returns than RD. FD Amount is deposited once (lump sum) in a time that gains a higher interest rate.
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