LIC RD Calculator
The LIC Recurring Deposit (RD) calculator will let you know the exact amount you would earn as interest on your RD for a fixed period. However, the figure is the gross interest amount. You will need to deduct the tax deductible at source (TDS) to know your interest after the tax payment.
An RD is a saving instrument, where you can make monthly installments. An RD allows you to grow your monthly savings over a fixed period. The tenure of the RD is usually between 6 months and 10 years. The interest is paid to over your funds and is usually compounded quarterly.
How Does The LIC RD Calculator Work?
The RD calculator works based on the below formula.
Where,
M is the Maturity value of the RD
R is the monthly installment credited in the RD
n is the number of quarters in the total tenure
i is the rate of interest divided by 400
Example:
You are planning to put ₹45,000 every month in an RD. The deposit pays an interest rate of 6.8% per annum. The tenure of the RD is 10 months.
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 45,000 x [(1 + 6.8/400) x 0.8 - 1] / 1 - (1 + 6.8/00) (-⅓)
M = ₹4,64,185
So, if you put ₹45,000 in an RD every month for a tenure of 10 months and earn an interest rate of 6.8% per annum for your investment, you will make a maturity of over ₹4.64 lakhs. You will earn an interest amount of ₹14,185.
How To Use The LIC RD Calculator?
The RD interest calculator is available on the Koshex platform. You only need to know the below three variables to know your maturity amount.
- The monthly amount you wish to put in your RD
- The interest rate at which the bank agrees to pay you interest on the RD
- The tenure of the RD, which is the period for which you wish to hold the money in an RD
The calculator page will display the total maturity amount and estimated interest on the screen.
Example:
Ms. Devika is looking to save ₹14,000 every month in an RD. The RD scheme is paying you an interest rate of 7.1% per annum. The duration of the scheme is 6 years. By using the calculator formula, let's calculate the maturity amount.
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 14,000 x [(1 + 7.1/400) x 6 - 1] / 1 - (1 + 7.1/400) (-⅓)
M = ₹12,57,907
So, if Ms. Devika saves ₹14,000 every month in an RD, earning an annual interest rate of 7.1% for a tenure of 6 years, she will earn a maturity amount of over ₹12.5 lakhs. The interest earned by the RD is nearly ₹2.5 lakhs.
Benefits Of Using The LIC RD Calculator
Some of the key advantages of using an RD calculator are:
- The LIC RD calculator saves you time as it performs complex calculations in minutes and eliminates the hassle of manual calculations.
- The calculator gives accurate results with minimal or no chances of error if the inputs are given correctly.
- The calculator allows investors to easily plan their future with great accuracy.