AllBankingSolutions.com

......our answer to all your banking needs



 

Follow AllBankingSolutions

 @


    Follow allbanking on Twitter

 

Recurring Deposit Calculator  - India


Ads by Google

RD Calculator

 

Recurring Deposit scheme is offered by almost all banks (RD schemes of SBI, PNB, ICICI Bank, HDFC Bank, IDBI Bank, Bank of India, Bank of Baroda, Corporation Bank  ) in one form or the other.  Recurring Deposit is very popular among the salaried class, specially who can afford to save only few hindered or say few thousand rupees per month.   This scheme is a boon for people who do not have a large amount of savings and thus can not use the Fixed Deposit scheme of the banks.  Under this scheme, the customer deposits a minimum amount (normally fixed) every month, and bank pays the interest at the pre-determined rates (which is usually the  same as applicable to fixed deposits ).  At the end of the period i.e. on maturity date, the customer is paid the maturity value i.e. principle deposited and the interest payable.


Recurring Deposit Calculator - RD Calculator
Monthly Instalment Amount Rs.
                   Annual Interest Rate %
                               Period in Month(s) - (Must be divisible by 3)

Maturity Amount (Approx) Rs.
Interest Amount (included in Maturity Value) Rs.

Ads by Google


Recurring Deposit Interest Calculator

 

The above is a RD Interest Calculator which calculates the maturity value (i.e. principal amount + interest earned ) of the deposits made under recurring deposit schemes of banks in India.

 

TDS On Interest Earned on Recurring Deposits / TDS Rules for RD Interest :

 

In terms of present guidelines, TDS is not deductibale on the interest paid by banks. However, the investor needs to include the interest accrued during the year in his / her income tax return.

 

How Recurring Deposit Interest is calculated ? / Formula for RD Interest calculations :

 

Formula used by Banks in India / Recurring Deposit Calculations / RD Calculations / Recurring Deposit Calculation Formula / RD Formula used by Indian Banks : The following formula is used by Banks in India for calculation of maturity value of the Recurring Deposit wherein the compounding is done on a quarterly basis:


 


Maturity Value of the Recurring Deposits  - based on  Quarterly Compounding)

 

M =R [ (1+i)n 1]
         --------------------    
         1- (1+i) -1/3

 M = Maturity value
R = Monthly installment
n = Number of quarters
i = Rate of interest/400

 

 

 

In EXCEL ( .xls file ) the Future Value (FV) is used for this purpose.  However, it has been noticed that it does not exactly match with the values as per the bank maturity value charts of banks in India.


Ads by Google


 

Click Here for :  EMI Calculator

Click Here to know :  Highest Rate of Interest on Saving Fund Accounts

 

You May Be Interested in Reading  Our Three other popular articles relating to Fixed Deposits:

 

    (a) HOT TIPS FOR BANK DEPOSITS          

 

    (b) HOT TIPS FOR TDS  INTEREST ON BANK DEPOSITS   

 

    (c) Banks Paying the Highest Rate of Interest in India for FDs and RDs