What is Recurring Deposit (RD) ?
A Recurring Deposit also known as RD in short. RD is a kind of term deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to deposited amount. It is a kind of investment which allows people to make regular deposits and earn decent returns on the investment after a period of time.
Frequently Asked Questions (FAQs)
MATURITY AMOUNT (M) = P [(1+R) n – 1] 1- (1+R) -1/3
M = Maturity value of the RD.
P = Principal RD installment amount to be paid monthly.
n = Tenure of RD (in number of quarters)
R = RD interest rate.
Bank RD interest rates are revises time to time in all Banks. So, to know which Bank is giving more interest on RD you need to get latest news form the individual websites of the Banks. Anyways, soon you will be getting all the latest RD interest rates here at RD Calculator Pro.
Some time it is goog and some it is not. It really depends on individual needs of money and time.
In case of emergency if you broke your RD before maturity time. Banks might deduct 1 to 2 percent penalty on the interest accrued on your recurring deposit amount for the period for which the amount was with the Bank.
Be Well Informed Always!
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Latest RD Interest Rates
Recurring Deposit Interest Rates in India in Oct 2019 is varying between 5.75% to 8.05%. Minimum deposint amount for RD is Rs.10 (in Post office RD could be opened with minimum montly amount of Rs. 10 only) and maturity tenure you can choose from 6 months up to 120 months.
Difference Between RD, FD and SB
Money grows after spending somewhere. Hence, it is very significant to know where to put your money, so that you could obtain more attention from the saving amount you have. India has top 3 options as a content put, recurring deposit, fixed deposit & account and these puzzles mostly folks. Most of the people are generally confused about Fixed Deposits, saving bank accounts as well as RD.