Recurring Deposit is an investment which is offered by banks and other financial institutions. In Recurring Deposite you have to pay particular amount for every month at decided rate of interest for particular time duration. It is also called as RD calculartor.
How our recurring deposit calculator works?
It is the investment that you want to do on recurring deposit for every month till the end of your investment years
Expected Interest Rate
This is the percentage return per year at which you want to invest your amount for decided time duration
It is the compounding frequency of times per year the total interest is paid
It can be number of years, number of months or number of days depending upon the frequency type
This is your total investment till the end of your investing years
This is the interest you will have by the end of investment years
This is the total amount you will receive which is sum of your total amount invested and the interest you will earn
How does RD work ?
Unlinke FD investment, in RD deposite you can start investing with small amount for a pre-decided time duration at fixed rate of return (pre-decided). In RD deposite the rate of interest in fix which have already decided when investing for the first time.
What is the Formula to calculate Interest on Recurring Deposit?
Here is the formula of Recuuring Deposit:
A = P(1 + r/n) ^ nt
A = Maturity Amount
p = Monthly Deposit
r = Annual Rate of Interest
n = Compounding Frequency