The recurring deposit calculator is, without a doubt, a helpful tool. Thanks to it, the interest accumulated on a regular deposit can be easily calculated. According to experts, starting a recurring deposit is one of the best methods to save money. Therefore, calculating how much you should save each month to achieve your goal is made much easier with the help of a regular deposit calculator.
A recurring deposit calculator is your best resource if you’re an investor seeking a reliable and secured investment solution. You can regularly save money by making regular deposits into a recurring deposit scheme.
What is a Recurring Deposit Calculator?
Before we understand a recurring deposit calculator in detail, let’s focus on a recurring deposits for a moment.
Recurring Deposits (RDs) are a renowned investment scheme that allows you to deposit a small amount of money into it and earn interest.
Characteristics of Recurring Deposit Scheme
1) RDs offer a higher interest rate than savings accounts at the bank. The government also offers them.
2) There is a six-month minimum term limit and a ten-year limit for RDs.
3) By utilising the deposit as collateral and getting a loan for 80–90% of it, it is possible to borrow money against an RD.
4) There are restrictions for early withdrawals from RDs. But occasionally, banks will sanction early withdrawals in exchange for a fee.
The Recurring Deposit Calculator tool, which will enable you to determine the amount you’ll get when the deposit matures, is offered by various financial institutions and other websites. The calculator shows results right away. Just enter the investment amount, tenure, interest rate, and additional essential information.
How is a Recurring Deposit Calculator Helpful?
With a Recurring deposit calculator, investors can calculate their returns without the hassle and estimate the precise amount of interest collected on their deposits upon maturity.
The TDS deduction is the only thing that needs to be done manually by the investor. The new RBI regulations state that RDs must also deduct TDS. However, there is no uniformity in how this is done among financial institutions. Therefore, Recurring deposit calculators do not account for it.
Benefits of using an RD calculator
There are various recurring deposit calculators available online that everyone may use, and they have the following benefits.
1) Convenient to Use:
The calculator for recurring deposits is relatively easy to use. The only numbers that need to be entered are the monthly deposit amount, RD interest rate, years of investment, and compounding frequency. The maturity amount is then computed using the recurring deposit calculator.
A lot of time can be saved by using an RD calculator. It can finish complex computations in a fraction of a second. The investor saves time and is not required to worry as they do not have to perform complex calculations.
The calculator is accurate if the inputs are entered correctly, and there is no chance of error.
Several banks and other financial institutions provide recurring deposits. The maturity values of regular deposits from various financial institutions can be readily compared by investors using a Recurring Deposit calculator.
5) Completely Free to Use:
The Recurring Deposit calculator is available to investors for free. Investors are welcome to use it as often as they wish to determine the returns on RDs with various tenures and interest rates.
A recurring deposit (RD) is an option if you wish to invest and save a portion of your hard-earned money each month but also need safe and predictable returns. A type of term deposit known as an RD enables you to invest steadily, regularly, and systematically every month, allowing you to achieve specific financial goals.
While your risk profile may lead you to invest your hard-earned money through market-linked investing channels, saving a portion of your monthly income for an RD is wise. It will offer you some sort of essential financial security at every age.