Recurring Deposit(RDs) are an investment tool almost similar to fixed deposits. By recurring we mean something that occurs repeatedly in a course of time. Thus, investing in an RD means the investor invests in installment rather than depositing a lump sum amount in FDs. The calculations of RD returns are often quite complicated for a mean investor to work out accurately whenever . The returns on these deposits can be challenging to track for a particular investor since the interest is computed quarterly and various other variables are involved which makes the calculations difficult to handle manually. There is where a RD calculator comes bent be beneficial. RD calculator helps to eliminate the hassle of computing the returns manually and enables an investor to know the exact savings they will receive after the relevant period.
Reccuring calculator can be used on two modes with tax and without tax . You need to add monthly amount you need to invest , rate of returns and the time span for which rd needed to be continued.
Recurring Deposit (RDs) are an investment tool that requires regular monthly deposit for a predetermined period and earns an interest rate. Once an RD matures a lump sum amount plus the interest is paid back to the investor. They are similar to FD but with high flexibility.
RD can be opened in any of the banks in India including SBI bank, ICICI bank, HDFC bank etc. you don't need to open another account for it the same one works, you just need to visit your bank and ask them to open an RD account for you.
Yes tax can be saved on RD if the money is deposited for medium-term or long-term tenure in the RD account.
Yes it is taxable.
Yes, TDS of 10% is applicable on interest earned. If the interest earned on the recurring deposit exceeds 10,000 the TDS is deducted.
Yes, it is possible to close your RD account before maturity. The interest will be paid until the date of closing. Your financial institution may also charge a penal fee.
Usually, RD tenure starts from 6 months and stretches upto 10 years. You can also choose tenure in multiples of 3 months after the six months i.e, 9 months, 12 months, 15 months and so on.
Yes, banks generally offer higher rates of interests than the normal deposits. Usually, banks offer 0.25% to 0.75% more interest than normal RDs.
The minimum amount may differ from bank to bank and it can be as low as Rs 10.
Ideally, you should not delay the monthly installment of your bank RD. but in case you do, for delayed payment of any installment beyond the calendar month, you as a depositor, are liable to pay Rs. 10 per Rs. 1000 per month for the period of delay. Do note that a fraction of a month will be considered as a full month for the purpose of penalty.