A Recurring Deposit (RD) is a good way to save money. It lets you put aside a fixed amount of money every month. Over time, this money grows because it earns interest. An RD calculator app helps you figure out how much you can save and earn. In this guide, we’ll show you how to use an RD calculator app, step by step.
Step 1: Download the RD Calculator App
The first step is to download an RD calculator app. You can find these apps in the App Store if you have an iPhone or in the Google Play Store if you have an Android phone. Type “RD calculator” in the search bar, and you’ll see many options. Pick one with good reviews and click “Install.”
Step 2: Open the App
Once you have installed the app, open it to begin. You will see a simple screen with several empty boxes. These boxes are where you enter important details about your Recurring Deposit, like how much you will deposit each month and the interest rate. By filling in these details, the app can calculate your savings correctly.
Step 3: Enter the Monthly Deposit Amount
The first box you need to fill in is usually labeled “Monthly Deposit Amount.” This is the amount of money you plan to deposit into your RD account every month. For example, if you want to deposit ₹1000 every month, type “1000” into this box.
Step 4: Choose the Tenure of the RD
Next, select the “Tenure” or duration of your RD. The tenure is how long you will keep depositing money. RDs can serve for as little as six months and as long as ten years. Choose the tenure that matches your saving goals. If you want to save for 2 years, select “2 years” from the list.
Step 5: Enter the Interest Rate
The next box is for the “Interest Rate.” This is the rate at which your money will earn interest. Different banks offer different interest rates for RDs. You can find the current rates on your bank’s website or ask a bank employee. Enter the rate you found into the app. For example, if the rate is 6%, type “6” into the box.
Step 6: Press Calculate
Once you have entered all the necessary information, look for the “Calculate” button. This button is usually at the bottom of the screen. Tap it to see your results. The app will quickly calculate how much money you will have at the end of your RD tenure. It will also show you the total interest earned.
Step 7: Review the Results
After pressing “Calculate,” you will see a summary of your RD savings. The summary will include the total amount you deposited, the total interest earned, and the final amount. For example, if you deposited ₹1000 every month for 2 years at 6% interest, you might see something like this
:
- Total Deposited: ₹24,000
- Total Interest Earned: ₹1,560
- Final Amount: ₹25,560
These numbers help you understand how much your savings will grow over time. You can try different amounts, tenures, and interest rates to see how they change your savings.
Step 8: Adjust Your Plan if Needed
If you see that your savings are not growing as much as you wanted, you can change your plan. Try increasing your monthly deposit amount or choosing a longer tenure. Use the app to calculate again and see how these changes affect your final amount. Changing your plan can help you reach your savings goals faster.
Step 9: Set Reminders
Some RD calculator apps have a reminder feature. This feature helps you remember to deposit your money every month. Check the app for a “Set Reminder” option. You can set it to remind you a few days before your deposit is due. This way, you won’t forget to make a payment and can stay on track with your savings.
Conclusion
Using an RD calculator app is a simple and effective way to plan your savings. It helps you understand how much you can save and earn over time. By following these steps, you can easily calculate your RD returns and make smart financial decisions. Start using an RD calculator app today and take control of your savings.
