Recurring deposit or RD is a popular savings instrument. RD can help you to achieve a financial goal. It can be a bit difficult and time consuming to calculate the returns of an RD on a paper. The RD Calculator helps you to calculate the expected return of an RD. With a few seconds, you can measure the growth of your monthly savings.
Calculating RD is easy. You need to enter monthly installment, duration, or the tenure and the rate of interest. Once you finish your inputs, click on the 'Calculate Now' button to get the result.
Let's understand the result. On clicking the 'Calculate Now' button, the result will display within a second, which includes accumulated interest and the maturity amount.
RD or Recurring deposit is a monthly savings scheme offered by financial institutions like Banks, Post-Office, etc. It comes with short or long term tenures with a fixed rate of return. You can choose any number of months as tenure.
A savings account might be helpful to manage an RD Account. You can also opt for an auto-debit facility to fund the RD. Auto-debit instruction can only be created, if you have a savings account linked with the RD account.
This scheme is one of the popular savings schemes in India. Nowadays, most of the banks are offering online RD Accounts opening facility. Not only opening an account, from internet-banking, but you can also close it whenever you want.
One can have more than one RDs in the same or another branch. The income from RD is fully Taxable and applicable for TDS (Tax Deduct at Source). The maturity value will be credited after deducting the TDS (if applicable).
Recurring Deposit is one of the popular savings schemes under the secure savings category. RD offers plenty of features. Some Banks may provide some more exclusive features. Here are the most common features of an RD account:
RD or Recurring Deposit is a purely monthly savings scheme. If offers investors save a fixed amount monthly, for a defined period.
The rate of interest of an RD is fixed. Means, when you open an RD Account, the applied ROI will never change for that specific account.
If you have a savings account linked with the RD account, you may opt for Auto-Debit Standing Instruction for funding the RD account. Standing Instruction automatically deducts the monthly payable amount and credits into the Recurring Deposit Account. This option can save a lot of time.
Most financial institutions allow premature closure of an RD account. However, in case of premature account closure, a penalty might have to pay.
The gained interest from an RD is fully taxable and applicable for TDS. A TDS of 10% will be deducted If the annual income from interest is more than Rs. 10,000. However, if you are not under the income-tax bracket, you can ask Bank to stop deducting the TDS by applying 15G or 15H form.
In order to open an RD account, you can visit any authorized banks or post-office. After some paperwork, an RD account can be opened instantly.
Yes, most of Banks offers an online RD account opening facility from their Internet-Banking portal.
Yes, having more than one RD account is not a problem.
Most of the financial institutions compound the interest quarterly basis.
No, partial withdrawal is not allowed.
Yes, it is taxable and applicable for TDS.
Yes, most banks offer pre-mature closure of an RD account.
Yes, most financial institutions offer an additional .5% of the rate of interest for the Senior Citizen RD account. However, the rate of interest can be varied banks to banks.