**New RD Calculator is available to calculate the maturity amount along with interest, Enter the new values (deposit, tenure, interest rate) in the Recurring deposit calculator and get your maturity amount…**

If you are wondering what would be a great investment opportunity where you can invest regularly and make a profit off the interest as well then the right option for you would be recurring deposits, and you might already know that there are various types of deposit investment schemes out there in the market through which you can invest and earn through interests.

But the recurring deposits are a favorable investment opportunity to those with regular extra money to be invested. In this, individuals like you can invest month on month unlike Fixed Deposits (FD) where you have to invest a huge amount of money at a single time.

99employee.com first discusses down the article regarding which banking service would be more favorable and a good choice to invest in the recurring deposits. Due to the ability to invest monthly, the recurring deposit has become a common investment strategy in the earning individuals who earn salaries every month that find this opportunity to invest and earn.

Recurring deposits are quite common which are now being offered by all banks and financial institutions all across the country as the number of earning individuals with regular wages prefer this investment method.

But before that, the reason why someone would invest in a bank’s recurring deposit is based on the interest rate the bank provides, and at the same time, there are different factors that would determine the interest rate which are the age of the customer, tenute of the recurring deposits and mainly the bank through which you are investing also matters.

## What is RD Calculator

If you are someone new to the investment market then you might not be completely aware of the terms related to recurring deposit and how much money is to be invested as per your earnings, and that is the reason why we use a recurring deposit calculator which will help you identify the investor angle for you, making things less complicated and investing a ease process at the same time.

So let me walk you through the recurring deposit calculator and its formula, along with the factors that it majorly depends upon.

**A = P*(1+R/N)^(Nt)**

The above is the formula used to determine your RD maturity, and where

- A is the recurring deposit maturity
- P is the rd investment to be made monthly
- N is the compound frequency or the number of quarters
- R is the rate of rd interest provided by the bank or financial institution
- T is the tenure of the investment to be made

Let us take an example, where you will be investing 5,000 rupees per month for a tenure of 1 year which means 4 quarters at a recurring deposit interest of 8%, then with the help of the above formula the red maturity will be as follows.

**A=5000(1+0.825/4)^(4*12/12)**

So at the end, the rd maturity will be Rupees 62,730.85 and as you’ve seen calculating this through the formula manually is a time taking and an error involved process which is why we suggest you to use the recurring deposit calculator to make calculations required for your investment.

**What does Recurring deposit Maturity mean?**

If you invest in a recurring deposit over your given investment tenure then the amount that you will receive at the end of your investment tenure is called the recurring deposit maturity money. Basically, the day when you will be able to receive your investments as returns with profits is called maturity. The RD Maturity level depends on a lot of factors such as the tenue, investment per month and rate of interest as well.

As you already know that the recurring deposits it based on a tenure investment where the interest is compounded every quarter along with 3 – 4 variables involved in determining the maturity level which makes the normal calculation pretty hard and that seizes the reason why someone should actually be using recurring deposit calculator to ensure that their future investments are on point and correct.

## RD or FD – Which is Better

The recurring deposit is based on monthly investment through a selected tenure of time, whereas the fixed deposit is based on one time huge investment. Both of the investment opportunities have their own benefits such as follows.

Recurring Deposit | Fixed Deposit |
---|---|

Fixed period investment to be made timely over a selected tenure | One time huge investment has to be made |

This is preferred for earning individuals who cannot invest in a huge amount | This is preferred for those who have huge amount with them that can be invested at one time |

Minimum tenure is 6 months | Minimum tenure is 7 days |

Maximum duration is 10 years | Maximum duration is 10 years |

Interest earned is taxable | Interest earned is taxable but depends on TDS |

Interest rate is lower since the investment is month on month timely | Interest rate is high since the investment is a huge one time |

So based on the above comparison between both the RD vs FD, you can make your decision which will help you to invest properly.

**Is Post Office RD a good investment? – Post office RD Calculator**

Investment opportunity in the Post office through the India Post saving scheme has grown tremendously over the years because the interest rates are moderate to high but the main reason is the sense of trust since this scheme is supported by the government of India. If you are wondering how you can use a post office rd calculator to calculate your maturity level, then you do not have to find a separate calculator because you only need to find the tenure, interest rate and investment to be made to find your maturity level.

## RD Interest Rate

After the post office, all the citizens of India would find investing in rd through a bank a hassle free and more convenient method which everyone would agree, but before you do, you would have the question which bank would be best for rd and which one would provide the best rd interest rate as well, and so, we have provided some of the basic Interest Rates of SBI, HDFC, Post Office, and some popular banks to give you an idea.

Bank Name | For Regular Customer | Senior Citizen | Tenure |
---|---|---|---|

SBI | 5.40% | 5.90% | 6 months to 10 years |

HDFC | 5.50% | 6.00% | 90 Months to 120 Months |

ICICI | 5.50% | 6.00% | 1 year to 10 years |

AXIS | 5.50% | 6.00% | 6 months to 10 years |

PNB | 6.00% | 6.50% | 6 months to 10 years |

Post Office | 5.8% | — | — |