A Recurring Deposit (RD) is a fantastic financial tool for individuals who want to build a savings habit but don't have a large lump sum to invest in a Fixed Deposit (FD). By depositing a small fixed amount every month, you earn interest that is compounded quarterly. The Toolzeniq RD Calculator takes the complex mathematics out of the equation and instantly shows you exactly how much your monthly savings will grow over time.
A Recurring Deposit (RD) is a term deposit offered by banks that allows you to deposit a fixed amount of money every month into your account and earn interest at the rate applicable to Fixed Deposits (FDs).
RD interest is compounded quarterly by most banks. Our calculator uses the standard compound interest formula M = R[(1+i)^n - 1]/(1-(1+i)^(-1/3)) to provide highly accurate maturity amounts.
Yes, but banks usually charge a premature withdrawal penalty (usually 1-2% less than the applicable interest rate for the duration the deposit was held).