A Recurring Deposit (RD) is a safe way to save money every month and build your savings. Banks and post offices offer RDs with fixed interest rates, allowing investors to grow their savings over a set period.
Whether you are saving for a vacation, your child’s education, or an emergency fund, an RD provides a risk-free way to accumulate wealth with guaranteed returns. Our RD Calculator helps you effortlessly estimate your maturity amount and total interest earnings!
📌 Why Use an RD Calculator?
✔ Instant & Accurate Calculations – No need for manual computations.
✔ Better Financial Planning – Know how much you will accumulate at the end of your tenure.
✔ Compare Interest Rates – Evaluate different banks and tenure options.
✔ Understand Compound Interest Growth – See how small monthly deposits grow into a significant corpus.
✔ Free & User-Friendly – Quick and easy-to-use tool for all investors.
📊 How Does the RD Calculator Work?
An RD earns interest using compound interest, which is calculated every quarter. The formula used is:
= P × [(1 + r)ⁿ – 1] / (1 – (1 + r)^(-1/3))
Where:
🔹 M = Maturity amount (Total wealth accumulated)
🔹 P = Monthly deposit amount
🔹 r = Annual interest rate (divided by 100)
🔹 n = Number of compounding periods per year (quarterly = 4)
🔹 t = Total investment duration (in years)
Rather than doing manual calculations, our RD Calculator instantly provides accurate results. 🚀
📈 Example: How Your RD Grows Over Time
Let’s assume:
✅ You start an RD with ₹5,000 per month.
✅ The bank offers an interest rate of 6.5% per annum.
✅ You invest for 5 years.
-
- Total deposited amount: ₹3,00,000
- Total interest earned: ₹54,157
- Maturity value at the end of 5 years: ₹3,54,157
💡 Higher interest rates and longer durations significantly increase your maturity amount!
📍 Benefits of Recurring Deposits (RDs)
✅ Great for Short-Term Goals – Whether you’re saving for a vacation, school fees, or an emergency fund, an RD helps you build wealth steadily.
✅ Assured Returns – With RDs, your money grows safely because the interest stays the same, no matter what the market does.
✅ Safe & Reliable – It’s a safe way to invest and is suitable for people who don’t like taking risks.
✅ Flexible Tenure Options – Pick a duration that suits your needs, from as short as 6 months to as long as 10 years.
✅ Power of Compounding – Unlike a regular savings account, your RD earns interest on interest, helping your savings grow faster!
🔢 How to Use the RD Calculator?
Using our RD Calculator is simple and requires just three inputs:
1️⃣ Enter your monthly deposit amount – This is the fixed amount you will save monthly.
2️⃣ Select the interest rate – Typically 4%-8%, depending on the bank or post office.
3️⃣ Choose your investment tenure – Select 1 year to 10 years.
🔹 Once you enter the above inputs, you will get an estimated investment value at maturity.
💡 Tip: Try different deposit amounts and tenures to see how they impact your final corpus.
📌 RD Returns Based on Different Tenures (Assumed Quarterly Compounded)
| Monthly Deposit (₹) | 5 Years @ 6.5% p.a. | 7 Years @ 7% p.a. | 10 Years @ 7.5% p.a. |
|---|---|---|---|
| 1,000 | ₹ 70,991 | ₹ 1,08,462 | ₹ 1,78,576 |
| 5,000 | ₹ 3,54,954 | ₹ 5,42,310 | ₹ 8,92,880 |
| 10,000 | ₹ 7,09,908 | ₹ 10,84,621 | ₹ 17,85,760 |
| 20,000 | ₹ 14,19,816 | ₹ 21,69,241 | ₹ 35,71,521 |
💡 RDs work best when you choose higher interest rates and longer durations!
💰 How to Open an RD Account?
Starting an RD is simple:
✔ Step 1: Select a bank or post office that offers the best interest rates.
✔ Step 2: Choose your monthly deposit amount and tenure.
✔ Step 3: Register and submit KYC documents.
✔ Step 4: Set up an auto-debit facility to ensure timely deposits.
🔹 Want expert guidance on better investment alternatives? VSJ FinMart, an AMFI-registered Mutual Fund Distributor (MFD), can help you explore higher-return options like mutual funds, debt funds, or hybrid investments!
📌 Why Choose VSJ FinMart for Investment Planning?
🔹 Expert Investment Advice – We help you choose the best financial instruments based on your goals.
🔹 Higher Return Alternatives – Explore mutual funds, fixed-income funds, and SIPs with better growth potential.
🔹 Portfolio Monitoring – Get professional support in tracking and managing your investments.
🔹 Paper-Free Investment Process – Paperless, quick, and transparent service.
📌 Final Thoughts
A Recurring Deposit (RD) is a great way to save consistently and earn guaranteed returns. If you are looking for safe, disciplined investment options, RDs are a reliable choice. However, if you seek higher returns with flexibility, mutual funds and SIPs could be better alternatives.
🔹 Want personalised investment strategies? VSJ FinMart can help you choose the best financial plan for your needs.
📞 Reach out now for tailored investment solutions.!
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📢 Disclaimer
Mutual fund investments are subject to market risks, so read all scheme-related documents carefully before investing. Past performance is not indicative of future results. The information provided in this blog is for educational and informational purposes only and should not be considered investment advice. Investors should consult their financial advisors before making any investment decisions. VSJ FinMart is an AMFI-registered mutual fund distributor (MFD) that does not provide portfolio management or stock advisory services.