Recurring Deposit Interest Rates Calculator | Saving Benefits

Recurring Deposit – though lots of investment options have emerged recently, recurring deposit has become a saving box to most of the middle-class people and small scale investors. The recurring deposit schemes available in banks and postal departments are still welcomed by many common people. Here are the details about interest rates, procedures and other details about recurring deposits available in both banks and post offices. Here is the recurring deposit’s interest rates calculator with details explaining the saving benefits.

Recurring Deposit Savings and Benefits

Recurring Deposit Interest Rates

Recurring Deposits in Banks

Recurring deposit schemes in banks has term duration available from six months till ten years. The interests available on RD may change from bank to bank though it is all calculated on half-yearly basis. If you miss out to pay the RD in bank for a month in between, you’ll be charged about Rs. 1.50 to 2.00 per 100 rupees in the next consecutive month as penalty charge. If you are willing to quit from recurring deposit before the maturity period, then 1% of the interest will be deducted from the earlier interest rate what it was when you had started the RD.

You can avail loans through bank’s recurring deposits. If the maturity duration is below three years, you can avail loan up to 90% and if it is more than three years you can get loan up to 70%. The interest for this loan will be 10.75%. Every month when you are paying the RD, the interest along with the loan amount can be paid together. If not, during the maturity period of your RD all the deductions will be done including the loan and interest amount that has to be paid – the remaining will be given to you.

Postal Recurring Deposits

In the postal recurring deposit schemes – from minimum Rs. 10 per month to maximum of any amount can be deposited (saved) on a monthly basis. For this 8.4% of interest is given. The interests are being calculated based on quarterly period. Whatever the interest rate was while starting your recurring deposit, the same interest rate will only be calculated during the maturity of your RD. Postal recurring deposit’s minimum time duration is itself five years.

Avoid Penalties

Due to financial insufficiency when you are not able to pay the RD, you’ll be charged with 2% as penalty. Like this you can delay the payment of RD up to four months.

Withdrawing from Recurring Deposit in Between

After starting your RD, if you are not able to continue your investment after one year time and if you are willing to withdraw from recurring deposit scheme, you can do that. But you cannot redeem the savings whatever you have saved so far immediately. The money can be withdrawn only after minimum of three years. Further, the interest that was available during when you started the RD won’t be available too. The interest will be calculated only based on the “savings account” interest rate that is available in current. Additionally, there will be a deduction from your savings made as “Free Closure Charge”, since you have opted yourself to quit from the investment.

Loans will be Available

Based on the one year completed investment savings, you can avail loan. Up to 50% of the amount saved will be available as loan. For this a 15% interest is charged. When you are repaying the loan, it can be paid along with the RD amount.

For those who are saving Rs. 50 per month will get insurance. If he or she has paid this recurring deposit for 15 months time and if any misfortune occurs thereafter, the term fixed by him or her for five years will be available as insurance amount – that will about Rs. 3000.

With lots of benefits in recurring deposit savings with good interest rates and saving benefits, this exists to be one of the best saving box available for most of the common public and middle class families. Recurring deposit interest rate calculator will show you only good signs of savings and benefits. This doesn’t have any extra risk other than what has been discussed above.

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