Estimate your future savings with compound interest
Maturity Amount
₹0
Investment Amount
₹5,000
Total Interest
₹0
Tenure
5 Years
Compounding Frequency
Monthly
Compound interest is a powerful tool for growing savings over time. This guide covers essential concepts, calculations, and strategies to maximize returns through compound interest.
Compound interest grows your money exponentially over time. The formula to calculate the future value of an investment or savings account.
Where:
The calculation for the maturity amount in an RD involves summing up the interest for each monthly installment. This can be simplified using the formula for the maturity amount:
Where:
For instance, let's calculate the maturity amount for a recurring deposit where ₹10,000 is deposited monthly with an annual interest rate of 6% compounded quarterly for 3 years:
Recurring deposits are a disciplined way to save regularly and earn assured returns. By understanding the interest calculation, benefits, and strategies for maximizing returns, you can make informed decisions about your recurring deposit investments. Always compare interest rates and terms across different banks to find the best RD scheme that aligns with your financial goals.
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