A Recurring Deposit (RD) account is a type of investment account that allows investors to make recurring monthly payments and save money over a set period of time. Investors can select the duration of the investment as well as the monthly payment amount based on their needs. RD plans are often more flexible than fixed deposit schemes and are favoured by people looking to open an account to save money and build a rainy-day reserve.
The rate of interest on RDs is the same as the rate on term deposits. The charge applicable to all Senior Citizens aged 60 and over will be 0.50% more than the rate applicable to ordinary consumers. Investing in Equitas Small Finance Bank is an excellent choice for individuals with limited income. The advantage of RDs is that you obtain the same interest rate for the duration of the RD, even if future RD rates are lower.
A pre-specified sum is deposited at regular intervals in an Equitas Small Finance Bank Limited RD account, and its duration ranges from 6 months to 10 years, with monthly installments of 12, 24, 36, 48, 60, 72, 84, 96, 108, and 120 months. The RD calculator below makes it simple to determine the amount of interest generated as well as the maturity amount.
The Equitas Bank RD Calculator calculates the maturity value of your deposit amount based on the interest rate provided and compounded quarterly. The number of fixed deposits, interest rates on RDs, deposit length, and interest compounding frequency all contribute to the maturity amount of the RD at the end of the term. A customer considering an RD can utilize the Equitas RD Calculator to:
– Create an effective recurring deposit plan investing strategy.
– The time range of tenure for which he/she desires or is able to make the investment.
– Set several interest rates to get the best one for you.
– The entire amount he or she would get upon maturity.
Equitas Small Finance Bank will transmit the interest generated at each interval (say, quarterly) to your bank account if you choose the periodic interest payment option. The interest rate would stay constant for the duration of the deposit. Unless the deposit is renewed, the principal amount of the RD would be transferred to your bank account at maturity. When you choose Equitas Small Finance Bank recurring deposit, you will get a credit for the principle, and interest earned net of TDS at maturity. By using the Equitas Bank RD calculator, you can compute the RD maturity amount.
In order for a user or a customer, the following steps need to be followed while using the calculator.
Step 1: Enter the amount that you would like to invest in the RD every month.
Step 2: Next, enter the rate of interest.
Step 3: Thirdly and in the final step you can enter the number of years or months you would like the undertake the scheme for.
After you have filled in the above-mentioned data, you can see your final earning in the scheme on the calculator. You can find your total investment in the RD, the total interest earned, and the maturity value.
The formula that is used to make this calculation is mentioned here below:
M = R[1+in-1]1-(1+i)-13
The variables of this formula present;
Here is an example to demonstrate the example better:
When you choose to invest Rs. 3500 every month, for a period of 2 years, and the bank offers you an interest of 5.5% then the RD can be calculated as:
M = 5.5[1+50-1]1-(1+5)-13
Which will be – Rs. 88,962
Using the Equitas Small Finance Bank RD Calculator can be beneficial to customers who choose to begin investing in recurring deposits for a better investment approach and financial quotient. Here are some of the common benefits of utilizing the Equitas Small Finance Bank RD Calculator.
– It is an instant digital tool that can be used free of cost to receive instant results for an RD investment.
– You can access it from everywhere and at any time through Groww.
– You can rely on accurate results without having to wait or do the math yourself.
– You do not need to seek help to calculate your maturity value in the investment.