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RD Calculator
Calculate the maturity amount and interest earned on your Recurring Deposit (RD). This tool helps you see the returns on your systematic monthly savings.
About This Tool
A Recurring Deposit (RD) is an investment where you make fixed monthly payments and earn interest on them. It's a great way to build a savings habit. This calculator estimates your total corpus at the end of the RD tenure, including the principal invested and interest earned.
How to Use This Tool
- Enter the amount you wish to invest monthly.
- Enter the annual interest rate offered.
- Specify the investment duration in years.
- Click "Calculate Maturity" to see your investment summary.
Frequently Asked Questions
How is interest calculated on an RD?+
Interest on a Recurring Deposit is typically compounded quarterly. This means the interest earned in a quarter is added to the principal for the next quarter's calculation, leading to better returns over time compared to simple interest.
What happens if I miss an RD installment?+
If you miss a monthly installment, most banks will charge a small penalty fee. If you miss several consecutive installments, the bank may close your RD account. It's important to be regular with your payments to avoid penalties and earn the expected returns.
Is the interest earned from an RD taxable?+
Yes, the interest earned on a Recurring Deposit is taxable as per your income tax slab. If the total interest income from all your RDs and FDs with a bank exceeds a certain limit in a financial year, the bank is required to deduct TDS (Tax Deducted at Source).