Recurring Deposit calculator gives a rough estimate of future savings based upon your periodic investments, frequency, bank’s interest rate, and time horizon of investment. It uses the power of compounding to grow your savings.

A recurring deposit (RD) is an investment instrument similar to fixed deposits. However, one has to make monthly fixed deposits in RDs, unlike a lump sum amount in FDs. Recurring deposits are offered by various banks and financial institutions in India. The RD returns calculation could be pretty complicated for a common person to grasp accurately every time. Hence, this is where Fintra's RD calculator proves to be immensely beneficial.

Since the RDs are constant investments, their returns on the deposits could be challenging to track. Interests are compounded quarterly, and there are various variables involved that make these calculations multipart. Therefore, an RD deposit calculator reduces the hassles of computing the returns manually and enables the individual to know the exact amount the deposits will accrue after the relevant period.

However, while calculating, the individual has to manually do the TDS deduction, and the new RBI norms state that RDs are also liable for TDS deduction. However, there's no concord in the implementation across the financial institutions, which is why RD calculators don’t take it into account.

- Our RD calculator enables you to plan your future finances with greater clarity by presenting you with the exact amount your investment will accrue.
- The calculator is convenient to use and will save you time.
- The calculators' accuracy can never be in question. Accurate estimates are crucial for doing prudent financial planning.

The few major factors that are taken into consideration when deciding how much rate of interest should be given to the depositor are:

**Tenure:** Tenure is the duration of the money that is invested in a recurring deposit. Tenure is one of those factors on which the interest depends on, and the RD interest rates vary all tenure options.

**Age of the Applicant: **As an example, financial institutions such as banks provide higher rates of interest to senior citizens, it may range from 0.50% to 0.75% additional interest on the regular deposit rates.

**Current Economic Environment:** Banks that provide recurring deposits keep updating their interest rates as per the economic conditions. For example, a few of the reasons for the changes in economic conditions might be the change in RBI's repo rate, inflation and so on. Therefore, it's the prevailing conditions that play a vital role in determining the RD rates.

While deciding which RD to opt for, it is vital to know what combination of instalment, rate of interest, and deposit tenure would lead to better returns. Fintra's RD Calculator aims to do just that. The four fields to fill in for ascertaining your potential earnings while investing in a recurring deposit are:

- Monthly Deposit Amount
- RD Frequency
- Annual Interest Rate
- Deposit Tenure in Years

Hit the 'Submit' button and the results will appear on the side of the calculator. Please note the amount calculated is applicable if the interest is compounded quarterly.

Most banks which offer recurring deposits compound the interest quarterly. In India or the maturity value of RD, banks use the following formula for doing the RD interest calculation:

(Maturity value of RD; based on quarterly compounding)

M =R[(1+i)n – 1]/1-(1+i)(-1/3)

The letters stand for:

M = Maturity value of the RD

R = Monthly RD instalment to be paid

n = Number of quarters (tenure)

i = Rate of Interest / 400

Instead of manually completing this calculation, you can easily use the Fintra's Recurring Deposit Calculator, and narrow down the best combination to earn better returns.

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