Logo
Become our Partner
Training Sessions
  • Facebook
  • Twitter
  • Instagram
  • Linkedin
Banner

Blogs

Understand How to Use an Online Calculator for Recurring Deposits Interest

Date: Dec 1, 2022 | Time: 06:59:00 PM | Author: Editor News

Unlike the normal savings account, the recurring deposit can be preferred by account holders who require variable tenure and will be receiving greater returns. Furthermore, they will be relying more on these sorts of flexible and low-risk deposit schemes along with any definite financial motives or plans. In that case, it is significant to have at least a rough idea about its interest rates, which can be determined by making use of online interest rate calculators for RD accounts. Without this, it would be much more strenuous for an investor to calculate accurate returns all the time.

The calculations of the interest rate of RDs should be done by considering different variables, besides the fact that the interest of these deposit schemes is compounded quarterly. Also, it is vital to understand which combination of instalment, interest rate, and deposit tenure will result in the most earnings when choosing an RD. Anyhow, for better financial planning you need to have accurate calculations of your investment options. In that case, preferring online calculators would turn out to be one of the best decisions that you take.

Steps to use an online interest calculator for RDs

Step 1: You may enter the amount that you are intending to invest every month in your recurring deposit.

Step 2: Now you may input the total number of years or months you are planning to invest.

Step 3: Finally, give the expected rate of return.

Step 4: At last, you may check the final amount of your returns that you will be receiving after the tenure.

Reasons to opt for online calculators rather than calculating manually

·    There is almost no chance of these calculations getting wrong or inaccurate when you are estimating your returns with an online calculator. Therefore, you do have to waste your precious time by calculating manually.

·    Since you are evaluating the actual amount of your investment using these online calculators, you could organize your future expenditures and budgets more effectively.

·    Most of the financial institutions that provide recurring deposit schemes will be having these online calculators, making it a very comfortable choice for investors.

·    You do not necessarily have to be a calculations expert to know the exact returns within a few seconds if you are using online calculators.

·    Online calculators also help you to compare and decide which is the best and your most suitable RD option from many.

Recurring Deposits and TDS deduction

Recurring deposits are subject to TDS (tax deducted at source) deduction, according to the recent guidelines of the RBI. Most of the online RD calculators do not account for TDS deductions as there is no consistency in their application across financial institutions. Therefore, the investors have to do TDS deduction manually. When the annual income of the investor is above a certain number, the banks impose some definite percentage TDS on RD interest income. Nonetheless, only the interest is taxed, not the principal.

Bottom Line

For acquiring better returns, a wise investor would always look forward to recurring deposits and to calculate those using online calculators. Furthermore, they are also considered the best option for investors who do not wish to invest all their money at once.

Stock Market Training Sessions for Different Languages :  https://www.wwatpl.com/free-trading-training-sessions

Recent Blogs