If you want to lead a secure life, you must save. This golden rule ensures all your future money-related needs are taken care of. But when you save, you must invest to make your money grow. If you do not invest your savings, inflation will lower their value over time and affect your future. One of the well-known options to invest your money is a recurring deposit, also known as RD.
Before you decide to invest your money in RDs, it is vital to use an RD calculator. This free tool will help you carefully choose whether or not to invest in RD. But what is a recurring deposit calculator? How do you use it? Read on to learn more about using an RD interest calculator.
What is an RD Calculator?
Before using an RD interest calculator, you must know what an RD is. A recurring deposit is a savings scheme where you deposit a fixed amount every month in the RD account. You can create an RD account and link it to your bank account. The money will be debited from your account and added to the RD account without you having to do anything. You can start an RD for at least 6 months and go up to10 years. The interest you earn will be added to the RD account, helping you earn interest on interest, i.e., compounding.
It will be hard for you to do all these calculations on your own as there can be some errors. Thus, you must use an RD interest calculator to help you with this task. It is a tool that will help you complete all RD-related calculations. Hence, there are no chances of errors, and you can get details of your RD investment in a few seconds. Thus, you will be able to make an informed decision. You only need to put some basic details in this tool and no personal details, so this tool is very safe.
Benefits of Using an RD Calculator
When you use a recurring deposit calculator, you take away the pain from the entire process. There is no need to use complex formulae and calculators to better know about the amount you must invest or how much you can earn on the money you plan to invest. Some of the key benefits of using an RD interest calculator are: –
- Accuracy: – There are no chances of errors when you use an online RD calculator. This is an automatic tool that is widely used for RD calculations. When you have more accurate results, it will be easier to decide. Also, you will get a true picture of how much you can make from your investments.
- Quick: – If you plan to complete RD calculations for up to 10 years, doing it manually is not an option. It will take too much time and effort. With an RD calculator, you can get the results quickly. So, you can make your decision quickly.
- Planning: – If you want to plan for a future need, you must know how much money you will need and when you can save that amount. With the help of this tool, you will be able to plan for your money-related needs in a better way and enjoy a safer future.
- Convenience: – It does not matter if you have a manual calculator. You can access this tool from any computer or mobile phone and get the result quickly. Many free mobile apps also offer this benefit.
How to Use an RD Interest Calculator?
An online RD calculator is crucial before investing money in this scheme. The steps to use this free tool can vary when using a computer or phone. Here are the steps you must follow to use the recurring deposit calculator in the right way: –
With a Computer
- Open your internet browser and type ‘RD interest calculator’ in the search option.
- From the results, select the best option for the RD calculator.
- On this page, you will see the tool open on your screen.
- Now, you must enter details like the money you want to invest every month, the rate of interest, and the period.
- As the interest rate can vary across banks, you must first check the rate with the bank. The rate of interest for seniors is higher than others.
- Press the calculate button, and you will see the result on your screen.
- The result will include details like the original amount, interest earned, and maturity amount.
- Many websites also show these details in a graph format for your needs.
With a Phone
- You can use any bank app or particular RD app for this purpose.
- So, download and install the app first and then open it.
- Select the option for RD interest calculator.
- Enter details like the money you want to invest, the interest rate, and the period.
- Hit the calculate button, and the result will be on your screen.
- You will see details like money invested, interest earned, and amount on maturity.
- You can change the details to arrive at the best option for you.
When you invest your money, you must do a lot of research. RD is a risk-free option, as you know at the start how much you will get on maturity. You can always use an RD interest calculator to check how much you must invest to get a given amount at maturity. This simple and easy tool can surely help you with making the decision. You can use it every time you plan to start a new RD for informed decision-making. To know more about RD and other finance-related topics, do visit the official website of Piramal Finance.