Savings is an essential aspect of our financial future. Be it trivial, to most significant expenses can be easily managed when you have a sizeable savings to depend on.
But creating a sizeable savings comes with its own difficulties; most of which revolve around having a lack of savings discipline.
That’s why savings schemes such as Recurring Deposit, have become popular in the recent years. If you have ever thought of choosing this savings scheme, we highly recommend you to try out an RD calculator. An RD Calculator helps with effective recurring deposit calculation.
What is Recurring Deposit Calculator?
With the RD calculator, you can determine the interest and maturity you would receive from a recurring deposit provided by Indian banks and post offices. Additionally, it helps determine which Indian banks and financial organizations offer the best and highest RD interest rates.
Recurring Deposits are another type of Fixed Deposit (FD), except that the account is credited each month instead of a single investment.
We’ll be learning more about the features here.
Features of RD Calculator
When you invest money with RD, you receive a fixed interest rate on that amount at a set frequency till the term is up or higher at the time of maturity. The amount due at maturity, which is the amount you invested, is paid at the end of the period, along with any unpaid or accumulated interest.
The following are the primary characteristics of a recurring deposit account:
- The purpose of recurring deposit programs is to help the general population develop a regular saving habit.
- Deposit terms range from six months to 10 years in length, with six months being the minimum.
- Since the interest rate is more significant than any other savings plan, it is equal to that offered for a fixed deposit.
- RD calculator also provides the option to borrow money using the deposit as security, an added benefit. The account holder may receive a loan of 80 to 90 per cent of the deposit value.
Benefits of RD Calculator
Recurring Deposit (RD) is a type of investment product that calls for consistent monthly fixed deposits over a predetermined period in exchange for an interest rate. An investor receives a lump sum payment with interest when an RD matures. With regular investments, they are comparable to fixed deposits. Hence, the habit of monthly savings and financial discipline in investors by RDs, just like with recurring fixed deposits.
Since fixed deposit rates vary from bank to bank, the same is valid with RD interest rates.
The interest rate for older folks is typically greater than for normal Rds. CIBIL score check online can help you get a good amount of loans. Therefore, a Recurring Deposit calculator is made available online for use by anyone, with the following advantages:
- The use is simple: The RD calculator is elementary to use. The only requirement is to enter figures for the monthly deposit, the RD rate, and the number of years. Then, the maturity amount is correctly shown by the RD Calculator.
- Timesaving: A substantial investment can be made by using an RD calculator. In just a few seconds, it completes intricate calculations. By doing away with human calculations, it spares the investor the hassle of manual calculations.
- Precision: If the inputs are given correctly, there is no scope of error because of how accurate the calculator is.
- Plans: Since the calculator provides an exact estimate of the return on investment, it helps investors accurately plan their future.
- No cost to use: The RD calculator is free for investors, and they are welcome to use it again to estimate the returns from RDs with various terms and interest rates.
There are many features of CIBIL score check online, such as informing you about the CIBIL score before making and after making a deposit, the average loan term and much more.
Final Thoughts
Recurring Deposit accounts are a product offered by almost all of India’s central banks. A minimum deposit of INR 100 is required to create an RD account with a public sector bank. While the minimum deposit required at private sector banks is between 500 and 1000 rupees, opening an account at a post office only costs ten rupees.
