Post Office RD Calculator is a helpful tool for individuals looking to invest their savings in a Recurring Deposit (RD) Scheme in a safe and reliable manner. This calculator simplifies financial planning for you and provides an estimate of your returns. In this articles, let us learn about the Post Office Recurring Deposit Calculator in detail.
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under
10(10D))
The rate of interest may differ from bank to bank and decided by the bank only. But what if you can calculate Recurring deposit ROI on your own? Yes, it is possible with the help of RD Calculator
What is Post Office RD Calculator?
The Post Office RD Calculator is an online tool that helps individuals calculate the interest earned and the maturity value of their investment in a Post Office Recurring Deposit (RD) Account.
RD Calculator- Post Office takes into account factors such as the following:
Deposit amount
Duration of the investment
Interest rates offered by the Post Office
It provides an accurate estimate of the returns that an investor can expect at maturity.
How Does the Post Office RD Calculator Work?
To use the Post Office RD calculator effectively, the following inputs are required:
Monthly Deposit Amount: The fixed sum of money deposited each month into the RD account.
Tenure: The duration for which the RD will be held, typically ranging from 6 months to 10 years.
Interest Rate: The rate of interest provided by the Post Office for RD accounts. This rate is subject to change periodically.
Once these inputs are provided, the calculator performs the necessary calculations to determine the maturity value and interest earned over the RD tenure.
Using the Post Office RD Calculator is a simple and straightforward process. The steps that an investor needs to follow to calculate post office RD are mentioned below:
Step 1: Open the Policybazaar Post Office RD Calculator webpage
Step 2: On the calculator interface, enter the following details:
Deposit amount (you wish to invest)
Duration of the investment (in months)
Latest Interest rate (offered by the Post Office)
Step 3: The calculator will automatically display the following details:
Maturity amount
Principal amount invested
Interest earned
You can experiment with different deposit amounts, durations, and interest rates to see how they impact the maturity value.
What is Post Office Recurring Deposit Formula?
Recurring Deposits can be calculated both with the help of a Post Office RD Interest Rate Calculator as well as RD Formula.
The Post Office Recurring Deposit Calculator works based on the following formula
M =R X [(1 + i) X n – 1] / 1 - (1 + i) (-1 / 3)
Terms used in Post Office Recurring Deposit Calculator
R
Monthly Deposit Amount
n
Total number of quarters in the tenure
i
Rate of Interest divided by 400 (includes 4 quarters each year)
M
Maturity value
For Illustration:
Mrs Sodhi bought a Post Office RD Scheme with the following details:
Monthly Deposits, R = Rs. 7,000
Tenure of RD= 5 years
Total no. of quarters in the tenure, n = 5 years X 4 quarters
n = 20 years
Rate of interest at the time of joining the RD= 5.8% p.a.
Therefore, i = 5.8 / 400 = 0.0145
So, the maturity amount at the end of 5 years tenure will be:
The eligible customers to join the Post Office Recurring Deposit Scheme are as follows:
Resident Individuals
Single Account
Joint Account (Maximum 3 Adults)
Minor (>10 years of age) through parent/ guardian
Minor (>10 years of age) in their name
Adult of unsound mind (through parent/ guardian)
Documents Required to Open a Post Office Recurring Deposit Account
The following documents are necessary to join the 5-Year Post Office RD Scheme to be functional:
Particulars
Details
Basic Documents
Post Office National Savings RD Account Form
Passport-size Photographs
Nomination Form
ID Proof
Pan Card
Aadhar Card
Passport
Voter ID Card
Driving License
Address Proof
Utility Proof
Bank Statement
Rental Agreement
Aadhar Card
Benefits of Post Office RD Calculator
The main advantages of using an RD Calculator are listed in the table below:
Provides accurate calculations of the interest earned and maturity value
Saves time and effort by providing instant results
No need for complex manual calculations
The calculator has a user-friendly interface that is easy to use
Helps in planning your investments better
Provides complete transparency in the calculation
Post Office RD Calculator is a free tool; you can use it as many times as you want without any charges
Wrapping It Up
Post Office RD Calculator is a useful and reliable tool for anyone looking to invest their savings in a recurring deposit scheme offered by the Post Office. The calculator is easy to use, transparent, and free, making it accessible to anyone with an internet connection.
Post Office RD Interest Rate Calculator is a valuable resource for individuals who want to plan their investments and achieve their financial goals.
FAQ's
How is post office RD calculated?
Policybazaar Post Office RD Calculator can be used to compute the interest earned and the maturity amount of your Recurring Deposit.
The interest rate is calculated every quarter for a particular financial year, and the interest earned for each quarter is added to the principal amount for the subsequent quarter.
The formula for calculating the Post Office RD interest is as follows:
M = R * [(1+i)^n-1]/1-(1+i)^(-1/3)
Where:
M = Maturity value
R = Monthly instalment
i = Rate of interest/400 (For quarterly compounding, i = Rate of interest/4)
n = Number of quarters
Which RD is best for 1 year?
The best RD interest rates in 2023 for a 1-year tenure are listed in the table below:
Post Office Savings Bank is offering an RD interest rate of 6.20% p.a. from 01 April 2023 to its customers.
Can I withdraw RD anytime?
Yes, you can withdraw the Post Office RD anytime after completing the three years of investment. However, if you withdraw the RD amount before the end of the 5-year tenure, you will have to pay a penalty fee.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Past 10 Years' annualised returns as on 01-04-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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