Post Office RD Calculator

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Post Office Recurring Deposit Calculator

The Post Office Recurring Deposit (RD) is a popular savings scheme offered by the Indian Government, allowing individuals to save a fixed amount of money every month for a predetermined period. The scheme provides a fixed interest rate ranging from 5.8% to 6.8%, depending on the deposit's tenure. Calculating savings and returns manually can be challenging, which is why our Post Office RD Calculator proves valuable. This tool enables users to effortlessly compute savings based on investment amount, tenure, and interest rate, facilitating effective financial planning for the future. With our calculator, you can conveniently plan and secure your financial goals.

How to Use the Post Office RD Calculator

Utilizing the Post Office RD Calculator is a straightforward process. Just follow these steps:

Step 1: Input the monthly investment amount

Enter the monthly amount you intend to invest in your Post Office RD.

Step 2: Input the Rate of interest

Provide the interest rate offered by the Post Office for RD accounts.

Step 3: Input the time periodSpecify the tenure of your Post Office RD account in either months or years.

The calculator will then furnish you with the following information:

Invested amount

Projected returns

Final Value

How to Calculate Post Office RD Interest Rate?

The interest on Recurring Deposits (RDs) is determined by post office and varies with the investment tenure. RD interest is compounded quarterly after an initial period of earning simple interest.

For example, if an investor starts an RD in June, they earn simple interest until September, after which interest is compounded quarterly. The quarters for RD investments are April to June, July to September, October to December, and January to March.

The formula for calculating Post Office RD interest and maturity value is:

M=R*[(1+i)^(n-1)]/(1-(1+i)^(-1/3))

Where, M = Maturity value

R = Monthly Instalment

N = Number of Quarters (tenure)

i = Rate of interest

For instance, if you deposit Rs. 10,000 monthly for 5 years at a 5.8% interest rate

M = 10000[(1+5.8)5 – 1]/1-(1+5.8)(-1/3)

This results in a maturity amount of Rs. 6,96,967, indicating an interest of Rs. 96,967 on the total deposit of Rs. 6,00,000.

Benefits of Using the Post Office RD Calculator

The Post Office RD Calculator offers several advantages:

Accuracy: It provides precise calculations of savings and total interest earned, reducing the chance of errors.

Convenience: Users can access the calculator from anywhere, eliminating the need to visit a physical Post Office branch.

Time-saving: The tool swiftly delivers instant calculations, saving users time and effort compared to manual computations.

Comparison: Users can easily compare savings and returns under various scenarios involving different investment amounts, tenures, and interest rates, aiding in informed investment decisions.

How to Open a Post Office RD Account

Opening a Post Office RD account in India involves the following steps:

Visit the Nearest Post Office: Go to the nearest Post Office to initiate the process.

Fill the Application Form: Complete the application form for the Post Office RD account and submit it along with the required KYC (Know Your Customer) documents.

Deposit the Amount: Deposit the desired amount you intend to save every month into the Post Office RD account.

Receive the Passbook: Upon completion, you will receive a passbook for your Post Office RD account. This passbook contains details of your monthly deposits, interest earned, and the maturity value.

Forecast the maturity value of your Recurring Deposit (RD) with ease using our Post Office RD Calculator.

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