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Total Interest :
₹49,919
Maturity Amount :
₹1,19,80,558
Invested Amount :
₹69,80,558
Invested Amount
Total Interest
Post office recurring deposits are among the most popular investment options when compared to fixed deposits, saving schemes offered by banks, or even other saving schemes offered by the post office. One of the major reasons for post office recurring deposits being so popular is the attractive interest rates they offer and the high maturity amount one can earn on them. An online Post office RD calculator will help you know the maturity amount and interest earned before investing. This will help you plan your deposit accordingly. Results are displayed instantaneously while manually computing the same would be very cumbersome. So use the post office RD calculator on CreditMantri and get the benefit of instant results. Enter the monthly investment, time period, and the rate of interest in the post office RD calculator, and the maturity amount and the interest accrued will be displayed instantly.
How to Use the Post Office RD Calculator?
Follow the steps below to use the Post Office Recurring Deposit Calculator on the CreditMantri website.
- Step 1 : Enter the amount you desire to deposit on a monthly basis
- Step 2 : Input the applicable interest rate and the recurring deposit duration.
- Step 3 : The post office recurring deposit calculator will display the total amount invested, interest accrued, and maturity amount.
Benefits of Recurring Deposits
Recurring deposits are very useful for people with low salaries and low incomes. They just have to invest a small amount every month. The investment amount can be as low as Rs. 10.
The investor has to deposit a part of his income regularly, so it develops the habit of saving.
An RD account can be linked to the savings account, so it does not require any documentation work.
Mutual funds and stocks are exposed to market risks. However, the amount invested will be safe in RDs and will mature along with the interest at the end of the fixed duration.
RD allows premature withdrawals, but it comes with a small penalty.
RD can be used as collateral for taking loans. You can take upto 80% to 90% loans on your RD amount.
Senior citizens get a higher rate of interest, about 0.5% more, for recurring deposits.
Minors can also open RD accounts under the custody and guardianship of their parents.
The tenure is flexible and you can choose from 7 days to 10 years.
How is the RD Maturity amount Computed?
The formula for the RD maturity amount is as follows:
M = P*(1+R/N)^(Nt)
Where M is the maturity amount
P is the amount invested each month.
R is the rate of interest (R is divided by 100 and substituted in the formula)
N is the compounding frequency (In most banks and financial institutions, the RD is compounded quarterly).
t is the tenure in months.
Let us take an example: A person invests Rs. 1000 monthly in an RD with an interest rate of 5% for a period of 3 months. What is the maturity amount of the RD?
The maturity is computed as follows:
| Month | Formula = P (1+ R/N)^Nt | RD Maturity Amount |
|---|---|---|
| 1 | 1000(1+0.05/4)^(4*1/12) | 1004.15 |
| 2 | 1000(1+0.05/4)^(4*2/12) | 1008.31 |
| 3 | 1000(1+0.05/4)^(4*3/12) | 1012.5 |
| Total | 3025 |
As you can see from the above, it is quite cumbersome to calculate the maturity amount manually. To simplify the process and to get instantaneous results, you can use a recurring deposit calculator.
FAQs
1. What is the maturity amount for Rs. 5000 monthly in RD for 5 years?
The maturity amount varies with the interest rate. For instance, if the interest rate is 5%, then the maturity amount for an RD of duration 5 years where you invest Rs. 5000 per month is 3,41,260.
2. Which investment option is better? RD versus FD?
The interest earned at the end of the maturity of a fixed deposit is higher than the interest earned at the end of the maturity of a recurring deposit. The interest earned on an RD is paid on maturity along with the principal amount.
3. Which bank gives 7% interest in RD?
SBI offers RD interest rates in the range of 6.50% to 7% p.a. to regular citizens and 7.35% to 7.5% to senior citizens with a minimum monthly deposit of Rs. 100. The duration for an SBI RD is in the range of 1 year to 10 years.
Disclaimer : This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source before taking any choices or actions.