As the term implies, recurring deposits are ongoing investments. Tracking the returns on these deposits might be difficult for investors. The computations are multipart since there are multiple variables, and the interest is compounded weekly.
By using an RD deposit calculator, investors may know exactly how much their deposits will accrue at the end of the period and can eliminate the headache of manually estimating returns.
The TDS deduction is the only thing the investor needs to take into account actively. An online RD calculator does not account for TDS deduction because financial institutions execute it differently, even though RDs are subject to TDS deduction under the new RBI guidelines.
Aside from that minor disclaimer, an investor can benefit from an RD amount calculator in the following ways:
With the calculator, investors can see more clearly how much their investments will increase, making it easier to make future plans.
It is easy to use and saves investors a great deal of time that they could use more effectively.
There's seldom a cause to question these calculators' accuracy. Precise approximations are essential for responsible financial planning.
The RD maturity amount is computed using three different variables. These variables are applied to a standard calculation by an RD maturity calculator in order to determine the precise maturity amount.
Below is the formula for calculating the RD maturity:
A = P*(1+R/N)^(Nt)
This is the conventional formula, independent of investment amount or tenure, that is used to determine the RD maturity amount. To complete the task, simply enter the variables.
| A | Maturity Amount |
| P | RD Instalment each month |
| N | Compounding Frequency (no. of quarters) |
| R | RD interest rate in percentage |
| t | Tenure |
For example, someone deposits Rs. 5,000 every month for a year, or four quarters, when opening an RD account. This account has accumulated 8% interest. The following formula is used to determine the deposit's eventual maturity amount:
A = P*(1+R/N)^(Nt)
= 5000*(1+.0825/4)^(4*12/12) = 5425.44
= 5000*(1+.0825/4)^(4*11/12) = 5388.64
…
= 5000*(1+.0825/4)^(4*1/12) = 5034.14
Using the total maturity value as the sum of the series, we get A = Rs 62,730.85.
For instance, the following equation can be used to deposit Rs. 1,00,000 at a 10% interest rate for five years:
M = Rs. 1,00,000 + (1,00,000 x 10 x 5/100)
= Rs. 1,50,000
The solution to this equation by hand is not simple. On the other hand, an RD calculator gives you the exact amount.
The maturity value of the depositor's RD investment is INR Rs 62,730.85.
An intuitive RD calculator is available on the HR HUB website; it doesn't require any particular expertise in finance-related topics. Let’s see the simple steps of using the HR HUB’s RD calculator:
Step 1: Simply enter the monthly amount that needs to be deposited into your recurring deposit.
Step 2: Type in the anticipated rate of return together with the number of years.
The total value of the investment at the conclusion of the term will be expressed in seconds.
India offers several benefits based on the online RD calculator provided by HR HUB. By using this calculator, depositors can get the following advantages:
It is a tool that saves time. The process, which begins with visiting their website, takes no more than one or two minutes, and it completes the calculations in seconds.
It is consistently true. If all of the variables are entered correctly, there is no possibility of errors or ambiguity.
Depositors can use this RD amount calculator as frequently as they like. By entering one or more variables, you can create as many versions as you like.
Recurring deposits are seen as reliable investments with the potential for large profits. You can evaluate the results of multiple alternative investment plans for the same sum using online calculators and adjust your strategy accordingly.
Recurring deposit interest rates are not always the same as fixed deposit rates, as they vary based on the bank and length of time.
For example,
Regular monthly deposit: ₹ 20,000
Tenure: 3 months
Interest rate: 7%
Total amount invested: ₹ 7,20,000
Total Interest: ₹ 82,745
Maturity Amount: ₹ 8,02,745
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