How to use this RD Calculator?

  • Select compound frequency. Can be yearly, half yearly, quaterly, or monthly
  • Use the slider for Selecting Monthly Deposit Amount
  • Move the slider and select the Interest Rate
  • Select the Investment Period in Months using slider
  • Recalculate your RD anytime by changing the input sliders
  • RD Amount will be calculated instantaneously when you move the sliders.

Benefits of Recurring Deposit (RD)

  • RD can be used as collateral for taking loans. You can take up to 80-90% loans on your RD amount
  • Premature withdrawals are allowed under RD. However, this may come with a small penalty
  • RD schemes allow for higher rate of interest (usually 0.5% more) for senior citizens
  • Minors can also open RD accounts under the supervision and guardianship of their parents
  • The tenure is also flexible and you can choose from 7 days to 10 years depending on your convenience
  • RD schemes allow you to save money on a regular basis and the minimum deposit amount can be as low as ₹ 10

Who Can Invest in Recurring Deposits?

Investing in a recurring deposit is a viable option for those who currently do not have a big amount of money but are looking for a low-risk investment option where higher returns can be earned with regular deposits.

All Indian residents and Hindu Undivided Families (HUFs) are eligible to open a Recurring Deposit with their bank. Some banks also allow minors to open an RD so that the habit of saving is inculcated in them since childhood. However, minors should have guardians to supervise their finances. Most of the banks ask their customers to set an amount in multiples of ₹ 100.