RD Calculator Online
RD or Recurring Deposits are an investment tool which allows investors to make regular monthly payments and save money for the long term. Investors can choose the tenure of the deposit and the minimum monthly payment they wish to make according to their convenience. RD schemes are generally more flexible than FD schemes and are generally preferred by those who want to start an account for the purpose of saving money and building a rainy-day fund.
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RD Calculator
Recurring Deposits (RD) offer a safe and systematic way to grow your savings with fixed interest. They’re ideal for individuals who want to save a small amount every month and earn assured returns at maturity. TaxSpanner’s RD calculator simplifies this process by helping you calculate the returns on your deposit easily.
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a type of term deposit that allows you to save a fixed amount of money regularly for a specific tenure. It combines the habit of disciplined savings with the benefit of earning interest on your deposits. With RDs, you can set aside a fixed amount every month, which earns interest, helping you build a lump sum over time.
How is RD Interest Calculated?
The interest on an RD is calculated using the compound interest formula. The interest is compounded quarterly, and the amount you earn depends on the duration of the deposit and the rate of interest offered by your bank or financial institution.
The formula used to calculate RD interest is
M = P x (1 + R/N) ^ (Nt)
Where:
• M = Maturity amount
• P = Monthly instalment
• R = Interest rate
• N = Number of times the interest is compounded (quarterly for RD)
• t = Tenure in years
TaxSpanner’s RD calculator does all the math for you, offering an easy and quick way to estimate the maturity amount.
How to Use the TaxSpanner RD Calculator?
- Enter Monthly Deposit: Input the amount you plan to invest monthly in your RD account.
- Select Interest Rate: Choose the interest rate offered by your bank or financial institution.
- Set the Tenure: Specify the number of months or years you wish to continue the deposit.
- Get Results: Instantly see the total maturity value of your RD, including the interest earned over time.
Why Use the RD Calculator?
TaxSpanner’s RD calculator is designed to give you instant and accurate results. With just a few clicks, you can:
- Plan your investments based on the maturity value
- Compare different tenures and interest rates for the best returns
- Understand how small monthly deposits can grow over time
- Save time and avoid manual calculations
Taxation on RD Interest
Interest earned on Recurring Deposits is fully taxable. The income you earn from RD is added to your taxable income and taxed according to your income tax slab. Additionally, banks may deduct TDS (Tax Deducted at Source) if the interest income exceeds Rs 40,000 in a financial year.
Benefits of Using TaxSpanner’s RD Calculator
- Instant Calculation: No need for manual computations. Get accurate results in seconds.
- User-Friendly: Easy to use with clear input fields.
- Flexible Options: Test various amounts, interest rates, and tenures to find the best fit for your savings goal.
- Smart Financial Planning: It helps you make informed decisions regarding your RD investments.
TaxSpanner’s RD calculator is your go-to tool for planning and optimizing your recurring deposits. It helps you forecast the returns on your savings and make sure you meet your financial goals with confidence. Start using the RD calculator now to see how your small monthly investments can turn into significant savings.
