RD Calculator

What is RD (RD)?

An RD is a savings account with a bank where a customer can deposit a lump sum of money for a fixed tenure at a fixed interest rate. Unlike a normal savings bank account, the interest earned is fairly higher. Unlike a mutual fund, the deposit amount and the stated interest rate are both guaranteed.

The RD may have a lock-in period during which the funds cannot be withdrawn without paying a penalty. RDs are generally considered a low-risk, low-return investment option and are popular among investors in India. Different banks offer different interest rates for RDs, including different rates for senior citizens. It is important that you research RDs adequately before committing any large sum of money to a RD.

What is a RD Calculator?

A RD calculator is a free, online tool that can help you automatically calculate the future value of your RD investment based on the amount invested, the duration of investment, and the rate of returns offered by the bank. It is a better alternative to manually calculating the maturity amount of an RD. Since it is publicly available online, anyone with a device with internet access can use it to accurately calculate returns on their RD investments.

Nowadays, it is easier to keep a check on changing rates. However, with the discovery of public provident fund calculator, account holders find it easier to find out monthly changes made in interest. In the market, you may find lot of user-friendly RD calculators and for choosing trustworthy ones, Groww is simply the option.

Formula used for calculating RD

F = P [({(1+i) ^n}-1)/i]

In the above formula –