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Total Interest : ₹49,919
Maturity Amount : ₹1,19,80,558
Invested Amount : ₹69,80,558
Invested Amount
Total Interest
How many of you think it is important to invest and secure your future? Most of us may understand that it is essential and may be searching for the best investment options. A recurring deposit or RD is an excellent option for investment amongst others. Using an RD, you can invest a small amount every month to facilitate the creation of a huge corpus. Before investing in an RD, it is ideal to use an RD calculator to determine the maturity amount and total interest earned. This will help you in better financial planning. So, use the recurring deposit calculator on CreditMantri’s website and get accurate and quick results.
Read also
https://www.creditmantri.com/article-where-to-invest-money-to-get-good-returns/
How to Use CreditMantri’s RD Calculator - Steps
Here are the steps to use our RD interest calculator
- Step 1 : Enter the monthly recurring deposit amount, investment duration, and the interest rate.
- Step 2 : You can see the maturity amount, total interest earned, and the total amount deposited after filling in all the details.
RD Interest Rates of Top Financial Institutions 2024
| Bank | RD Interest Rates (General Public) | RD Interest Rates (Senior Citizens) |
|---|---|---|
| SBI Bank | 4.40% to 5.50% | 4.90% to 6.20% |
| ICICI Bank | 3.50% to 5.50% | 4.00% to 6.30% |
| HDFC Bank | 4.40% to 5.50% | 4.90% to 6.25% |
| Kotak Bank | 4.30% to 5.20% | 4.80% to 5.70% |
| IDFC First Bank | 6.75% to 7.25% | 6.75% to 7.25% |
| Bank of Baroda | 4.30% to 5.25% | 4.80% to 5.75% |
| Axis Bank | 4.40% to 5.75% | 4.65% to 6.50% |
| Yes Bank | 5.00% to 6.50% | 5.50% to 7.25% |
| PNB | 4.40% to 5.30% | 4.90% to 6.05% |
| IDBI Bank | 6.25% to 7.00% | 6.75% to 7.50% |
| Canara Bank | 6.15% to 7.25% | 6.65% to 7.75% |
| Indian Bank | 4.50% to 7.25% | 5.00% to 7.75% |
| Indian Overseas Bank | 5.75% to 7.30% | 6.25% to 7.80% |
| Union Bank of India | 5.75% to 6.50% | 6.25% to 7.00% |
| Yes Bank | 6.10% to 7.75% | 6.60% to 8.25% |
| Bandhan Bank | 4.50% to 7.85% | 5.25% to 8.35% |
| Bank of India | 4.50% to 6.00% | 5.00% to 6.50% |
| Bank of Maharashtra | 5.50% to 6.25% | 6.00% to 6.75% |
RD Interest Rates of Top Banks for Upto 3 Years
| Bank | 1 Year | 3 Years |
|---|---|---|
| SBI Bank | 6.80% | 6.75% |
| ICICI Bank | 6.70% | 7.00% |
| HDFC Bank | 6.60% | 7.00% |
| Kotak Bank | 7.10% | 7.00% |
| IDFC First Bank | 6.50% | 7.00% |
| Bank of Baroda | 6.85% | 7.25% |
| Axis Bank | 6.70% | 7.10% |
| Yes Bank | 7.25% | 7.25% |
| PNB | 6.75% | 7.00% |
| IDBI Bank | 6.80% | 6.50% |
| Canara Bank | 6.90% | 6.85% |
| Indian Bank | 6.10% | 6.25% |
| Indian Overseas Bank | 6.90% | 6.50% |
| Union Bank of India | 6.75% | 6.50% |
| Yes Bank | 7.25% | 7.25% |
| Bandhan Bank | 7.25% | 7.25% |
| Bank of India | 6.50% | 6.50% |
| Bank of Maharashtra | 6.50% | 5.75% |
RD Interest Rates of Upto 5 Years and More Than 5 Years
| Bank | 5 Years | More than 5 Years |
|---|---|---|
| SBI Bank | 6.50% | 6.50% |
| ICICI Bank | 7.00% | 6.90% |
| HDFC Bank | 7.00% | 7.00% |
| Kotak Mahindra Bank | 6.20% | 6.20% |
| IDFC First Bank | 7.00% | N/A |
| Axis Bank | 7.00% | 7.00% |
| Bank of Baroda | 7.25% | 6.50% |
| PNB | 6.50% | 6.50% |
| IDBI Bank | 6.50% | 6.25% |
| Citi Bank | N/A | N/A |
| Bandhan Bank | 5.85% | 5.85% |
Disclaimer:The interest rates given in the tables above are as of April when this page was written and are subject to change. For exact rates, refer to the websites of or contact the respective banks.
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.