Recurring Deposit (RD) Calculator

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Building a Wall, Brick by Brick: The RD Philosophy

Imagine you want to build a strong, sturdy wall. You wouldn't try to lift all the bricks at once. Instead, you would lay them one by one, carefully and consistently. Each brick might seem small and insignificant on its own, but over time, they join together to create something substantial and impressive.

A Recurring Deposit (RD) is the financial equivalent of building that wall. Your monthly deposit is a single brick. It's a manageable, disciplined action. The "mortar" that holds it all together and makes it grow is the guaranteed interest from the bank. Month after month, you lay another brick, and the wall gets taller and stronger. This calculator shows you the final height of your financial wall and how much of it is made of your "bricks" (your investment) and how much is the strong "mortar" (your earnings).

Explore Other Savings Tools

  • Fixed Deposit Calculator: See the returns if you were to lay all your bricks at once (invest a lump sum).
  • SIP Calculator: Compare the potential returns of building a similar "wall" in the stock market.
  • Budget Calculator: Find out how large of a "brick" you can comfortably set aside each month.

Frequently Asked Questions

What is a Recurring Deposit (RD)?

An RD is a savings scheme where you deposit a fixed amount of money every month for a specific period, earning a guaranteed interest rate. It's a great way to enforce savings discipline and achieve short-to-medium term financial goals.

How is RD different from FD?

In a Fixed Deposit (FD), you invest a single, large amount at the beginning. In an RD, you invest smaller, fixed amounts every month. An FD is for when you have a lump sum, while an RD is for saving from your monthly income.

How is the interest calculated in an RD?

Interest in an RD is usually compounded quarterly. This means the bank calculates interest every three months and adds it to your balance. Because you are adding new money every month, the calculation is more complex than a simple FD, but it ensures that every deposit you make starts earning interest.