## Formula to calculate interest rate on recurring deposit

For Recurring Deposits, the maturity amount is a sum of the principal amount and the interest earned over the investment period. The interest is compounded quarterly. However, you needn’t bother yourself with the complex calculations. To calculate your Recurring Deposit maturity amount, turn to our custom-made RD maturity calculator. Recurring Deposit in short RD, is a particular kind of deposit offered through banks. It allows people to deposit any fixed amount and get interest every month. The interest rate of RD is based on the applicable rate to the fixed deposits. Check RD Calculator Formula and How to Calculate it below. See the latest interest rates on RDs offered by SBI, HDFC, ICICI and post office. RD Calculation Formula. Here is the formula for calculating maturity value recurring deposit given by Indian Banks' Association, which is a simplification of the formula for future value of annuity with monthly payments and quarterly compounding:-A = P . Following is the formula given by IBA for Quarterly-compounded recurring deposits: M = R ( (1+i) n -1) / (1- (1+i) -1/3) Where, M = RD maturity value R = Monthly installment n = Number of quarters i = Interest rate/400. This Simple Formula is Used to Calculate the Interest Value of Recurring Deposits (RD) . The rate of Interest Differs From Bank to Bank . R [ (1+i)n – 1] M = ——————–. 1- (1+i) -1/3. M = Maturity value.

## Secure your future with regular savings in a Recurring Deposit with IndusInd Bank. You can open a Recurring Deposit Interest Rate: As applicable for term deposits including the benefits of senior citizens. TDS in Interest: As How to Apply

This Fixed Deposit Calculator (FD Calculator) gives you the return on the Principal, based on quarterly rests (compounding) as per RBI guidelines. Rate of interest When it comes to Recurring Deposits, interest amount is compounded every quarter. This is then added up and the final amount that customers receive can be determined. The formula used to calculate compound interest is as follows- A = P (1 + r/n) ^ nt Recurring Deposit Interest : The interest rates given by banks is generally above 8.0% and it is compounded quaterly (means when your money gains interest in a year). You should know how to calculate compound interest in order to calculate recurring deposit maturity amount, you had studied compound interest in your school (formula is given below). In case of recurring deposits, the compounding happens on quarterly basis. The formula is: A = P*(1+R/N)^(Nt) Here, A is the maturity amount in Rs., the recurring deposit amount is 'P' in Rs., 'N' is the compounding frequency, interest rate R in percentage and 't' is the tenure. The interest rate on recurring deposits is correlated directly to the prime rate of the RBI. It is compounded and deposited to the account on a quarterly basis. Interest rates can range from 6.0% to 9.00%. r = annual nominal interest rate (as a decimal, not in percentage) n = number of times the interest is compounded per year; t = number of years; In your recurring deposit, you use this formula to calculate the final amount with each installment, and at the end of the installments, you add them all up to get the final amount.

### The rate of interest offered is similar to that of fixed deposits. The formula to calculate the interest is given as under:

r = annual nominal interest rate (as a decimal, not in percentage) n = number of times the interest is compounded per year; t = number of years; In your recurring deposit, you use this formula to calculate the final amount with each installment, and at the end of the installments, you add them all up to get the final amount. You can, now, within a few minutes calculate how much money you will receive at maturity for a given recurring deposit. Suppose you do a Recurring Deposit of Rs.500 for 36 months @8.75%. Modified Rate of Interest: The interest rate in Recurring Deposits (in this case case of 8.75%) An individual invests a monthly installment of 1200 $ at the interest rate of 10 % for 10 quarters. His RD Maturity value is. = (1200* ((1+10/400) 10 - 1 ) ) / (1-(1+10/400) -1/3 ) = 41002.533 $. This tool will help you dynamically to calculate the Recurring Deposits (RD) Maturity Value for Quarterly Compounding.

### Recurring deposit interest rates vary from 3.5% to 8.5% depending on the deposit tenure, amount and bank. RD interest rates for short tenure are similar to that of a savings account interest rate. But, if you opt for a longer tenure, then you might get an increase in interest rates as well.

The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate. The rate applicable to all Senior Citizens of age 60 years and Find out how much you can earn and save by making monthly deposits in our Recurring Deposits. Type of Customer. Normal Senior Citizen. At an interest rate of To calculate the RD, here I have attached the actual formula. enter image < label>Rate of interest

## See the latest interest rates on RDs offered by SBI, HDFC, ICICI and post office. RD Calculation Formula. Here is the formula for calculating maturity value recurring deposit given by Indian Banks' Association, which is a simplification of the formula for future value of annuity with monthly payments and quarterly compounding:-A = P .

Formula to Calculate Interest Rate. Bank pays interest half-yearly on saving account deposit whereas for fixed deposit and recurring deposit interest paid based on customer request which could be monthly, quarterly, half annually or yearly. And interest rate applied for one year is the annual interest. Divide the interest rate by the number of periods in a year (four for quarterly, twelve for monthly), and multiply the number of periods (p) by the same number. Of course the monthly deposit amount will need to be in the same terms. Income Tax on Recurring Deposit Interest. RD’s interest income is taxed at tax rate applicable to the deposit account holder. So, depending upon your tax bracket, out of the 10% that your bank pays on your deposit, you may have to pay up to 33.99% of that to the government for it to run the country.

In case of recurring deposits, the compounding happens on quarterly basis. The formula is: A = P*(1+R/N)^(Nt) Here, A is the maturity amount in Rs., the recurring deposit amount is 'P' in Rs., 'N' is the compounding frequency, interest rate R in percentage and 't' is the tenure. The interest rate on recurring deposits is correlated directly to the prime rate of the RBI. It is compounded and deposited to the account on a quarterly basis. Interest rates can range from 6.0% to 9.00%. r = annual nominal interest rate (as a decimal, not in percentage) n = number of times the interest is compounded per year; t = number of years; In your recurring deposit, you use this formula to calculate the final amount with each installment, and at the end of the installments, you add them all up to get the final amount. You can, now, within a few minutes calculate how much money you will receive at maturity for a given recurring deposit. Suppose you do a Recurring Deposit of Rs.500 for 36 months @8.75%. Modified Rate of Interest: The interest rate in Recurring Deposits (in this case case of 8.75%) An individual invests a monthly installment of 1200 $ at the interest rate of 10 % for 10 quarters. His RD Maturity value is. = (1200* ((1+10/400) 10 - 1 ) ) / (1-(1+10/400) -1/3 ) = 41002.533 $. This tool will help you dynamically to calculate the Recurring Deposits (RD) Maturity Value for Quarterly Compounding. To calculate your Recurring Deposit maturity amount, turn to our custom-made RD maturity calculator. It is a simple form where you can enter your details and auto-generate your maturity amount. How is Recurring Deposit interest calculated? Recurring Deposit is calculated using the compound interest formula.