RD Calculator

An RD calculator is an online tool that enables you to calculate the maturity amount for your RD account. The calculation of the RD investment involves complex formulas and equations. But don’t worry, that's where Pocketful’s online RD calculator comes to your rescue.

Our online RD calculator has a user-friendly interface, which is suitable for beginners as well. It helps you compare the returns on RD account deposits offered by various banks. It also assists you in doing your financial planning accordingly, depending on your financial goals.

Like all the other investment return calculators, the RD calculator works on the compounding interest calculator formula.

The formula is given below:

A = P[(1+I)^N-1]/(1-(1+I)^(-1/3))

Our online RD calculator is user-friendly and free to use. Just follow the simple steps mentioned below:

Step 1:

Enter the monthly investment amount you want to invest and interest rate offered on the RD by your Bank.

Step 2:

Select the desirable investment tenure. Voila! You will get your total investment amount, estimated returns, and the total amount that you will receive at maturity.

1. RD’s are not just a savings scheme, infact, they cultivate a habit of savings. It plays a significant role in your financial discipline

2. They can be used as collateral against the loan. You can take a loan against your RD deposit from the bank.

3. RD allows you to make withdrawals before the maturity of your investment. In case of any financial emergency, you can close your RD account and withdraw the amount. The bank will provide the interest on your investment accordingly but charge a penalty which differs from bank to bank.

4. For senior citizens aged above 60, interest rates offered on RD accounts are higher as compared to regular RD.

5. RD accounts can be opened in the name of minors under the supervision of their guardians.

Similar to fixed or term deposits, recurring deposit schemes also attract taxes. The interest earned from RD investment is taxed as per your income tax slab.

Further, a TDS of 10% is deducted from the interest accrued from an RD if the total interest exceeds INR 40,000 (INR 50,000 for senior citizens) in a financial year.