# RD Calculator

RD stands for Recurring Deposit

RD is slightly different from FD. In FD you have to deposit whole amount in one time on the other hand with RD you can deposit small amount in every month. It's best option for saving on Monthly basis with small amounts and at maturity you would get your deposited amount with interest. A person can open RD in post office and Bank.

Its a online Recurring Deposit (RD) Calculator to calculate the maturity amount earned on your investment with interest rate. RD is used to save money with monthly basis. Calculate the interest earned and the amount of Post Office RD - Recurring Deposit you will accumulate using the scheme.

## आवर्ती जमा कैलकुलेटर

आवर्ती जमा (आरडी) मुख्य रूप से भारत में बैंकों और वित्तीय संस्थानों द्वारा पेश किया जाने वाला एक प्रकार का सावधि जमा है। इसे व्यक्तियों को पूर्व निर्धारित अवधि में नियमित रूप से एक निश्चित राशि बचाने में मदद करने के लिए डिज़ाइन किया गया है। आवर्ती जमा उन व्यक्तियों के बीच लोकप्रिय है जो हर महीने एक निश्चित राशि अलग रखकर अनुशासित बचत की आदत विकसित करना चाहते हैं। इन्हें कम जोखिम वाला निवेश माना जाता है और ये नियमित आय वाले उन लोगों के लिए उपयुक्त हैं जो सुरक्षित और सुविधाजनक बचत विकल्प की तलाश में हैं।

Let's understand How a Recurring Deposit works:

1. Regular Deposits: The depositor agrees to deposit a fixed amount of money at regular intervals, typically monthly, for a specified period. These deposits continue for the entire duration of the RD.
2. Fixed Tenure: Like fixed deposits, RDs also have a fixed tenure, ranging from a few months to several years, depending on the terms offered by the bank.
3. Interest: RDs earn interest on the deposited amount, which is compounded quarterly in most cases. The interest rates for RDs are determined by the bank and may vary depending on the tenure and prevailing market conditions.
4. Maturity Amount: At the end of the tenure, the depositor receives the maturity amount, which includes the total principal amount deposited along with the accumulated interest.
5. Premature Withdrawal: Most banks allow premature withdrawal of RDs, but it usually comes with a penalty in the form of reduced interest rates.
6. Automatic Renewal: Some banks offer the option of automatic renewal of RDs, where the maturity amount is reinvested for another term if the depositor doesn't request withdrawal.

## RD Features

• RD schemes are effective in making a regular habit of money saving.
• The minimum amount that can be deposited in RD accounts may start from an amount as small as Rs.10. The minimum amount defers from bank to bank.
• The minimum period of deposit starts from 6 months to period of 10 years.
• RD interest rates are equal to that offered on a Fixed Deposit, which is generally higher than any other Savings schemes.
• RD accounts do not allow premature or mid-term withdrawals. However, the bank may allow closing the account before the maturity period with a penalty for premature withdrawal.
• RD offers an additional benefit to take a loan against the deposit.
• RD can be funded periodically directly from your Savings or Current account.

## Tax Treatment on RD

Tax are applicable as per income tax slab you fall into. There is no tax benefit on RD. We can say RD is a "TTT" type of investment for the purpose of tax rebate.