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We all are well-versed with a recurring deposit that is present as a mode of continuing investment. It isn’t easy to track the investors based on the returns on these deposits. The RD calculator is widely used for eliminating the difficulty of computing its returns manually. With its help, the investor comes to know about the exact amount increased on the deposits after a particular time period.
Noted benefits of Recurring Deposit Calculator
The Recurring Deposits entails steady monthly fixed deposits for a particular time and earning RD interest rates. The premature withdrawals result in a penalty, and calculating the interest could be tedious and takes lots of time. Hence, the RD calculator is the best we can use. There are lots of advantages related to the RD calculator 2020. Let’s start discussing them.
- Hassle-free usage
Most of you don’t know that the use of the RD calculator is effortless. You have to insert the values of monthly deposits, RD rates, and a number of years. By entering all, you will automatically get the maturity amount precisely.
- Saves time
RD calculator usage saves lots of time for investors. It is ideal for solving complex calculations within seconds.
- Accurate result
The calculator is designed in a manner to provide an accurate answer without giving any chance of error.
- Helps in future planning
The investors can easily plan their future with the use of this calculator because of precise results.
- Absolutely free to use
Every investor should know this that the RD calculator is free to use. You can use it multiple times for calculating the returns depending on interest rates and tenures.
The right way of calculating recurring deposit interest
Before understanding the working of RD calculators in Intra-day trading, firstly, it is required to understand the correlation between recurring deposit and interest rates. The interest is usually compounded quarterly by various banks and fiancé institutions. Mentioned is the formula for calculating the maturity value of RD.
M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )
M = Maturity Value
R = Monthly Instalment
n = Number of quarters
I = Rate of interest/400
Hence, it is easy to use an RD calculator.
Till now, you all must have understood the importance of the RD calculator in getting the accurate number of your maturity value. So, use it wisely and spend your savings in a right manner.
