If you are one who believes in making regular monthly investments and earn interests, then opening a recurring deposit would be a wise choice. The investor while investing in a recurring deposit can choose the tenure and number of monthly deposits as per his or her convenience. The recurring deposit scheme is more flexible than FD schemes and generally preferred for those who want to build an emergency, or you can say a rainy-day fund.
M is Maturity Value
R is Monthly Installment
n Number of quarters
I Rate of interest/400
For example : if you invest in RD and put in Rs. 5,000 per month for a year, at the interest rate of 8%, your total value will be calculated as:
R = 5000 n = 4 (one year has four quarters)
I = 8.00/400 M = Rs. 62, 647 in one year
RD calculator is a financial calculator that helps you in choosing the best recurring deposit scheme. Using this calculator, you can calculate the maturity and interest amount you can earn on your recurring deposit investment.
|Recurring Deposit||Fixed Deposit|
|A recurring deposit investment scheme is basically investing small amounts monthly at a fixed interest rate||A Fixed deposit is a one-time investment plan that allows to invest a lumpsum amount|