RDs or recurring deposit are nothing but an investment instrument which is quite similar to that of fixed deposit. However, a fixed deposit on a monthly basis needs to be made in RDs, not like FDs, where a huge chunk of money has to be deposited. If you are an earning individual, then RD would just be the perfect option for you, as it helps you develop the habit of regular investment. It also helps you maintain a routine and a schedule as far as savings in concerned. Most of the financial institutes and banks offer recurring deposits.
When it comes to calculating RD returns, it can be quite complicated; especially for those who are not used to the mechanism of it. It can be quite a difficult task to figure out the accurate value every single time. This is where a RD Calculator comes into the picture. It is an excellent tool when it comes to calculating RD returns.
What makes a RD Calculator so Important?
As the name suggests, a recurring deposit is a continuous process of investment. It can be quite challenging for the investors to keep a track on the returns of these investments. There are different types of variables involved and the interest rate is being compounded on a quarterly basis. All these aspects make calculation a very complicated process indeed.
With the help of a RD calculator, it is possible to get rid of the hassles when it comes to computing the returns manually. A recurring deposit calculator enables you to figure out the precise amount your deposit will accumulate, after a certain period of time. When it comes to calculating rd rates, a calculator is the best option for you, if you are looking to get the accurate figure and amount. When it comes to calculating rd interest rates; an interest calculator would just be the perfect option for you. The latest rd calculator 2020, comes with many new features and offers more flexibility when it comes to calculating. These calculators are also frequently used in Secondary market.
There is an Exception
There is however, one aspect which needs to be taken care of manually. It is the process of TDS deduction. According to the new guidelines set by the RBI, the RDs can be used for calculating TDS deduction; there is a lack of uniformity among different financial institutions when it comes to implementing it. This is the reason as to why RD calculators are not taken into consideration while calculating the TDS.
How to find the Best Banks for Recurring Deposits?
If you are looking for Best bank for rd, in that case, there are quite a few options available. Run a search over the internet to find out the best option for you.
As far as rd scheme is concerned, it can vary from one bank to another. Therefore, before making a choice, make sure to take all the aspects into consideration. Calculating the rate of interest has become easier these days; thanks to the RD calculator