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.
- 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 not tax benefit on RD. We can say RD is a "TTT" type of investment for the purpose of tax rebate.