Recurring Deposit Calculator
January 31, 2011 4 Comments
There is a saying in hindi ‘boondh boondh se sagar banta hai’ ie ‘Little drops of water make the mighty ocean.’
A life-time is but a sum total of seconds and our accomplishments are just a sum total of a lot of little actions.
Small sums of money saved in a recurring deposit account,tend to grow into nice lump-sums.Here is a calculator that graphically demonstrates this:http://www.religaremf.com/financial-goals.aspx .This calculator however does not allow you to input amounts less than 500 hundred rupees.Nor can you choose the frequency of compounding.Here is a calculator that allows for both:https://www.corpbanknet.com/Recurr_deposit_Calc.html.And in case you’re wondering just how small an amount will be accepted by anybody.The lowest I know of is India Post where the least monthly instalment is 10 rupees.The PORD offers 7.5% interest and is compounded quarterly.Here is a link to the PORD calculator:http://www.indiapost.gov.in/netscape/5YearsRD.html .This scheme is great for getting children to learn about saving and investment.
For any given term,banks generally offer an interest rate of one percent below fixed deposit rates for recurring deposits. Companies,such as Dewan Housing Finance ,too sometimes offer fixed deposits,though they are rarer.To find the best interest rates on offer for a given term please refer to my previous post : http://wealthymatters.com/2011/01/19/interest-rate/