Post Office Recurring Deposit Calculator
Post Office Recurring Deposit (RD) is a popular savings scheme offered by the Indian Government. It is a type of investment where you can save a fixed amount of money every month for a fixed period of time and earn a fixed rate of interest on it. The interest rate on Post Office RD ranges from 5.8% to 6.8% depending on the tenure of the deposit. However, calculating your savings and returns can be a challenging task. This is where our Post Office RD Calculator comes in. Our calculator allows you to easily calculate your savings based on the investment amount, tenure, and interest rate. With our calculator, you can plan your savings and secure your future.
How to Use the Post Office RD Calculator
Using Post Office RD Calculator is easy. Simply follow these steps:
Step 1: Enter the monthly investment amount
- Enter the amount you want to invest every month in Post Office RD.
Step 2: Enter the Rate of interest
- Enter the interest rate offered by the Post Office on RD accounts.
Step 3: Enter the time period
- Enter the tenure of your Post Office RD account in months or years.
The Post Office Recurring Deposit (RD) calculator will provide you with the following details:
- Invested amount
- Estimated returns
- Final Value
How to Calculate Post Office RD Interest Rate ?
The formula used to calculate returns from the post office RD account is as follows:
M =R[(1+i)n – 1]/1-(1+i)(-1/3)
where,
M = Total value of maturity
R = Amount of monthly deposits
n = Time period in years
i = interest rate offered
Let us understand this with an example. Suppose you want to deposit Rs 10,000 every month for 5 years in the post office RD that offers a 5.8% rate of interest. Here,
R = Rs. 10,000
n = 5
i = 5.8
Putting these values in the formula we get:
M = 10000[(1+5.8)5 – 1]/1-(1+5.8)(-1/3)
M = Rs 6,96,967
Hence, you will get a maturity amount of Rs 6,96,967 on your total deposit of Rs 6,00,000, which means an interest of Rs 96,967.
Benefits of Using the Post Office RD Calculator
There are several benefits of using Post Office RD Calculator:
- Accuracy: The calculator provides accurate calculations of your savings and total interest earned.
- Convenience: You can use the calculator from the comfort of your home or office, without having to visit a Post Office.
- Time-saving: The calculator saves you time and effort by providing instant calculations, without having to go through complex calculations.
- Comparison: The calculator allows you to compare your savings and returns with different investment amounts, tenures, and interest rates, helping you make informed investment decisions.
Post Office Recurring Deposit Account Features
Post Office RD account offers various features to help you save your money regularly and securely. Here are the features of the Post Office RD account:
- Eligibility: Any Indian citizen can open a Post Office RD account, including minors.
- Minimum and Maximum Investment Amount: The minimum investment amount for Post Office RD account is Rs. 10 per month, and there is no maximum investment limit.
- Tenure: The tenure of Post Office RD account is from 5 years to 10 years, and the deposit can be made on a monthly basis.
- Interest Rate: The interest rate on Post Office RD account ranges from 5.8% to 6.8% per annum, depending on the tenure of the deposit.
- Penalty for Delayed Payment: If you miss a monthly payment, you can pay the same with a penalty of Rs. 1 per Rs. 100 per month for each default.
- Nomination Facility: You can nominate one or more persons for your Post Office RD account to receive the maturity amount in case of your death.
Post Office RD account is a safe and secure way to save money and earn a fixed rate of interest. By using our Post Office RD Calculator, you can easily calculate your savings and plan your investments accordingly. With features like low minimum investment, guaranteed returns, and tax benefits, Post Office RD account is an attractive investment option in India.
How to Open a Post Office RD Account
Opening a Post Office RD account in India is easy. You can follow the below process to open a Post Office RD account:
Step 1: Visit the nearest Post Office
- Visit the nearest Post Office to open a Post Office RD account.
Step 2: Fill the application form
- Fill the application form for Post Office RD account and submit it along with your KYC documents.
Step 3: Deposit the amount
- Deposit the amount you want to save every month in the Post Office RD account.
Step 4: Get the passbook
- Get the passbook for your Post Office RD account, which will have details of your monthly deposits, interest earned, and maturity value.
How Does Taxation Apply on RD?
Recurring Deposits attract no tax exemptions. The interest earned from RD will require an income tax to be paid as per the income tax slab of the RD holder.
Frequently Asked Questions
Can I open a joint Post Office RD account?
Yes, you can open a joint Post Office RD account with up to three adults. The account can be opened either with "Either or Survivor" or "Former or Survivor" option.
Can I withdraw my money before the maturity date of my Post Office RD account?
Yes, you can withdraw your money before the maturity date of your Post Office RD account. However, the account needs to be held for a minimum of one year. If the account is closed before one year, then no interest is paid on the deposits. If the account is closed after one year, then the interest is paid at a rate of 1% less than the applicable rate.
Can I transfer my Post Office RD account from one Post Office to another?
Yes, you can transfer your Post Office RD account from one Post Office to another Post Office of your choice. The transfer can be done by filling out the necessary form and paying a nominal fee.
Is TDS applicable on the interest earned on Post Office RD account?
Yes, TDS (Tax Deducted at Source) is applicable on the interest earned on Post Office RD accounts. If the interest earned on Post Office RD accounts exceeds Rs. 10,000 in a financial year, the Post Office deducts TDS at the rate of 10% before crediting the interest to your account.
Can I use the Post Office RD Calculator to calculate my savings for multiple tenures?
Yes, you can use the Post Office RD Calculator to calculate your savings for multiple tenures by entering the investment amount, tenure, and interest rate separately for each tenure. The calculator will provide you with the savings and total interest earned for each tenure.
Is RD interest taxable?
Yes. Interest earned from RD is taxed at the income tax slab rate.