A recurring deposit (RD) is a type of savings scheme that allows you to invest a fixed amount every month and earn interest on it. RDs are offered by banks, post offices, and non-banking financial companies (NBFCs) in India. They are a safe and secure investment option that can help you build a corpus over time.
One of the benefits of investing in an RD is that you can know the exact amount of interest and maturity value that you will receive at the end of the tenure. This can help you plan your savings and financial goals better. However, calculating the interest and maturity value of an RD manually can be tedious and time-consuming. That’s why using an online RD calculator can be very helpful and convenient.
An online RD calculator is a tool that helps you determine the interest and maturity value of your RD investment. It also helps you compare different RD schemes and choose the best one for you. All you need to do is enter some basic details such as the monthly deposit amount, the interest rate, and the tenure of the RD. The calculator will then show you the interest and maturity value of your RD instantly.
In this blog post, we will show you how to use an online RD calculator to plan your savings. We will also share some tips and tricks to make the most of your RD investment.
How to Use an Online RD Calculator
There are many online RD calculators available on the internet, but one of the best ones is the Suvit RD Calculator. This calculator is easy to use, accurate, and fast. It also has some unique features such as:
- It allows you to enter any amount between Rs. 100 and Rs. 10 lakh as the monthly deposit amount.
- It allows you to enter any interest rate between 5% and 16% per annum as the RD interest rate.
- It allows you to enter any tenure between 6 months and 120 months(10 years) as the RD tenure.
- It shows you the interest and maturity value of your RD.
To use the SUVIT RD calculator, follow these simple steps:
- Step 1: Visit the Suvit RD Calculator and enter the monthly deposit amount, the interest rate, and the tenure of your RD.
- Step 2: On setting all the values using sliders, you will see the results. The calculator will show you the interest and maturity value of your RD. You can also see the graph with it.
- Step 3: Compare different RD schemes and choose the best one for you. You can change the input values and see how the results change accordingly.
That’s it! You have successfully used the online RD calculator to plan your savings.
Tips and Tricks to Make the Most of Your RD Investment
Using an online RD calculator can help you plan your savings, but there are some other tips and tricks that can help you make the most of your RD investment. Here are some of them:
- Choose a longer tenure for higher returns. The longer you invest in an RD, the more interest you will earn due to compounding. However, you should also consider your liquidity needs and financial goals before choosing the tenure.
- Choose a higher interest rate for higher returns. The higher the interest rate offered by the RD scheme, the more interest you will earn. However, you should also compare the interest rates of different RD schemes and choose the one that offers the best value for your money.
- Choose a higher compounding frequency for higher returns. The more frequently the interest is compounded, the more interest you will earn. However, you should also check the terms and conditions of the RD scheme and choose the one that suits your preference.
Also Read: Tax Audit Rules and Penalties for AY 2023-24
- Choose a tax-efficient RD scheme for higher returns. The interest earned on RDs is taxable as per your income tax slab and TDS rate. However, you can reduce your tax liability by choosing an RD scheme that offers tax benefits under Section 80C of the Income Tax Act, such as the 5-year post office RD or the 5-year bank RD. You can also submit Form 15G or 15H to avoid TDS if your income is below the taxable limit.
- Choose a flexible RD scheme for higher convenience. Some RD schemes offer flexibility in terms of deposit amount, withdrawal options, and premature closure. These can help you manage your cash flow and liquidity better. However, you should also check the penalties and charges involved in these options and choose the one that minimizes your cost.
Make Most of RD Calculator
RDs are a great way to save money and earn interest on it. They are safe, secure, and guaranteed investment options that can help you achieve your financial goals. However, calculating the interest and maturity value of RDs manually can be difficult and time-consuming. That’s why using an online RD calculator can be very helpful and convenient.
An online RD calculator can help you determine the interest and maturity value of your RD investment. All you need to do is enter some basic details such as the monthly deposit amount, the interest rate, and the tenure of the RD. The calculator will then show you the interest and maturity value of your RD instantly.
Suvit RD Calculator is easy to use, accurate, and fast. It also has some unique features such as showing you the graph.
