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Interest Rate Calculators and Eligibility for Recurring Deposits

Date: Sep 28, 2022 | Time: 07:18:00 PM | Author: Editor News

Amongst various investment instruments that are made available to us, what makes Recurring Deposits or RD popular is that you could invest a small amount of money at different intervals and later earn from it, unlike Fixed Deposits (FD). With such RD schemes, you could fulfil any short-term financial goals of like, as the investments are done at varying intervals by providing investors to accumulate funds without any hassles. RDs are considered one of the low-risk options that provide higher returns and are coupled with flexible tenure choices.

Much before investing your hard-earned money in any investment plans, you will inevitably be much curious to know, how much money you will receive at the time of maturity. Your problem could be solved by Interest Rate Calculators that are provided by almost every bank and the third-party website. You could even play your finances in the long term with such RD calculators.

They are calculators that are simple to use whenever you wish and the results will be displayed without taking so much time. In such calculators, you will be required to enter information such as the amount to be invested, rate of interest and tenure. The interest of your recurring deposit will be compounded quarterly.

How to use Interest Rate Calculator?

As already mentioned, you could make use of the online interest rate calculator to get an accurate estimation.

·   Firstly, you may enter the amount that you are depositing every month in the column set aside for it.

·   The tenure of the Recurring deposit investment is the very next box to be filled by the investor.

·   Following this, you may enter the interest rate, specifically, if you are depending on any third-party website for this purpose. Whereas, when you are using the calculator provided by your bank, then that unit will be automatically filled.

·   Finally, you may request to calculate with a click. The final result constituting of your maturity date and final amount will be visible in your screen within no time.

Other than the online interest rate calculators, you could find the amount received during maturity by using a formula. However, that could eat up your time. Therefore, you will be recommended to use the hassle-free online interest rate calculator.

At some banks, if you already have a savings account, the amount that you are intending to pay will automatically be deducted. The investor could choose their tenure as per their financial standing at the time; it could either be merely six months or even 5 years. You may pick out the bank for opening the RD according to the interest rates offered by them and the one that follows hassle-free procedures.

Eligibility Criteria for opening an RD

Now that you have decided to open your RD at your bank, you may check out the eligibility criteria. Given below is considered as the eligibility to invest in a recurring deposit.

·   Any individual who is a citizen of India could apply for an RD account.

·   Since different banks have minimum deposit amounts, you may pay accordingly.

·   Ensure that you possess any of those Identity proofs, which could be your Passport, Voter ID card, Senior citizen ID card, Driving License or PAN card.

·   Then as your Address Proof, you may submit your Telephone bill, ID card issued by Post Office, Passport, Electricity bill or bank statement or any documents accepted by your bank.

·   Other than the individuals, sole proprietorships, trusts, clubs, partnerships, societies or corporations could open a recurring deposit at some banks.

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