Saturday, May 2, 2015

How to Calculate RD Interest Download RD Calculator

Download RD ( Recurring Deposit ) Calculator excel sheet or RD formula
As a banker by profession many people come to my desk and they have the query on RD and its calculations. They want to know the formula which is used in Recurring Deposit so today I decided to write a post for them. I am sure you must have a Recurring Deposit account in your bank but most of people are unaware with the calculation that is done in RD.  Here we have a simple solution of this problem by downloading the RD calculator excel sheet you can easily calculate the RD interest or can compare it with your bank RD interest and also you can do the TDS calculations on RD that is going to be applicable w.e.f. 01st June, 2015


( Note: You must have office 2007 or its later updated version to access all the features and functions of this excel sheet and to save this file you can click on edit button, Go To File menu click on download option in excel)
Here we have also the formula that is used to calculate the RD interest This Simple Formula is Used to Calculate the Interest Value of Recurring Deposits (RD) . The rate of Interest differs from Bank to Bank so you should aware of the rate of interest your bank is applying on RD account.

Recurring Deposit's formula :

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

where M = Maturity value
R = Monthly instalment
n = Number of quarters
i = Rate of interest/400

TDS on Recurring Deposits:
Earlier, TDS was not deducted on Recurring Deposits ( RD ) but with effect from 01st of June, 2015 TDS on Recurring Deposits would be deducted @10 % under section 194A. No TDS would be deducted on interest earned upto Rs. 10,000/- so you can also calculate here the deduction amount and earned interest amount on RD by just downloading this sheet.

Later, I will also share you the post in detail on TDS and its slabs.

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