RD interest rates calculator helps you to calculate the maturity amount (the amount you will get after a certain period of time) for the deposit you have made under recurring deposit schemes. Recurring deposit compound interest rate calculator India doesn’t calculate the TDS (tax deduction at source) because different banks have different periods for deduction of the TDS.

Features of recurring deposit account

There are many features if recurring deposit account, some of the main features are mentioned below.

• Recurring deposit schemes are very effective to teach a regular habit of saving money.
• The minimum amount required to deposit in a recurring deposit account is 10 rupees. The minimum account varies from bank to bank.
• The minimum period required for recurring deposit account is 6 months and it may extend to the maximum of 10 years.
• The recurring deposit rate is similar to that offered on fixed deposit, which is greater than the saving bank account. By using an RD calculator you can calculate the exact amount you will get at the end.
• Recurring deposit account does not allow premature or mid-term withdrawals. However, you can close the account before the maturity period and get your deposited money back by paying a penalty fee for premature withdrawal.
• In addition, RD also offers benefits in which you can use the deposit as collateral in order to take a loan against the deposit.
• RD can be periodically funded directly from the savings or current bank account of yours.

Factors before opening an RD account

RD helps offers you high interest rated to help you to earn more money on your investment. But, make sure you have chosen a suitable RD scheme. Before investing in RD, consider the following mentioned factors below.

1. RD interest rates – All the banks offer high-interest rates to the investors on the recurring deposit scheme. The interest rate may vary from 3.5% to 8.5% depending on several things such as deposit tenure, amount, and bank. RD interest rate is similar to saving account interest rate for short term investment. But if you invest for the long term then you might get more interest rate then saving account interest rate.

2. RD tenure – If you want to invest in RD, you should choose a recurring deposit with the highest interest rate with less tenure. For example, if a bank provides 7% on RD for 1 year and 6.8% for 14 months then you should choose a 7% interest rate.

3. Liquidity – Most of the investors considers liquidity as the most important factor while selecting the right RD. RD does not offer a premature withdrawal, if you want to withdraw then you have to pay a penalty fee.

Recurring deposit for senior citizens

Senior citizens that are above 60 years of age are offered even more benefits on RD. The minimum tenure and loan amount is set by the bank’s policy and may vary from bank to bank. But generally, senior citizens get a 0.5% more interest rate than regular RD accounts.