# How is interest calculated on recurring deposit accounts in banks

I want to know how the interest is calculated on Recurring deposits made in banks and post offices in india? Also, give a few examples of calculation

Posted by on

• Deneen Lewis May 11, 2010

It would depend on the institution holding the money. They have the option to offer interest and how to calculate it. Give me the name of the institution in India and I will search for their interest policy.

For example some banks interest is calculated on the average balance during the month then that is calculated by .05 = 5% interest. However NO interest is offered if the balance in the account falls below a pre-determined dollar amount.

×

• Level 1:

An expert who has achieved level 1.

Mayor:

An expert whose answer got voted for 2 times.

• Contributor

Recurring deposit interest is calculation may vary depends on compounding period. You have to invest an amount every month interest will be calculated for the current holding in your recurring deposit account. And every compounding period interest amount will be added into holdings or available balance. You can calculate the Recurring deposit using this recurring deposit calculator

Posted on Sep 12, 2011

• Level 2:

An expert who has achieved level 2 by getting 100 points

MVP:

An expert that got 5 achievements.

Governor:

An expert whose answer got voted for 20 times.

Scholar:

An expert who has written 20 answers of more than 400 characters.

• Expert

It would depend on the institution holding the money. They have the option to offer interest and how to calculate it. Give me the name of the institution in India and I will search for their interest policy.

For example some banks interest is calculated on the average balance during the month then that is calculated by .05 = 5% interest. However NO interest is offered if the balance in the account falls below a pre-determined dollar amount.

Posted on Mar 27, 2009

Hi there,
Save hours of searching online or wasting money on unnecessary repairs by talking to a 6YA Expert who can help you resolve this issue over the phone in a minute or two.

Best thing about this new service is that you are never placed on hold and get to talk to real repairmen in the US.

Here's a link to this great service

Good luck!

Posted on Jan 02, 2017

×

my-video-file.mp4

×

## Related Questions:

### Interest rate calculation method for fixed deposit?

Fixed deposit is a low-risk, assured return and stable investment which lets you earn interest on the lump sum amount. Most financial institutions and NBFCs offer interest rate starting from 8.40% to up to 8.75% depending on lender's terms and your application. You can earn tax-free interest income up to Rs. 10,000 on your fixed deposit.
Use the online FD calculator on lender's website to calculate income from fixed deposit. It is a fairly simple process. This is how you can do it.
· Choose your customer type such as new customer, existing customer, or senior citizen.
· Choose type of fixed deposit i.e., cumulative (where interest is payable at the time of maturity of the deposit) or non-cumulative (where interest is earned in intervals like quarterly, monthly, half-yearly and annually).
· Choose amount of fixed deposit
· Choose tenure of the deposit
The calculator will provide the value of interest amount and total amount earned at the time of maturity of the deposit.
If you are wondering what formula is used for calculation, look below.
This is A = P (1 + r/4/100) ^ (4*n) and A = P (1 + r/25)4n.
Here,
A = Maturity Amount
P = Deposit Amount
n = Compounded Interest Frequency

Jul 06, 2018 | Finance

### Where should I invest?

According to best online stock trading company. Please be aware of any suggestions and weigh each of them at your end.
1.Do you need tax saving investments? If you are in tax bracket and your 80C investments are still pending. If Yes, Look for options PPF (For fixed return but long lock in) and ELSS (Short lock in but for market volatility)
2.Do you have some emergency fund at least to afford your own expenses for 1yr? If not, Accumulate that money in your account using recurring deposits.
3.What are your immediate goals e.g Buying a car/ Vacations/ Further education etc within 2-3 yrs down the line. If yes, Invest in recurring deposits with banks or post office.
4.Educate yourself for investing in MFs or Share market if it can be done for long term.

Jun 12, 2018 | Financial aid

### What is the method of calculating interest rate for fixed deposit?

Fixed deposit calculations can be done by both manual and automatic methods.Now let us figure out the fd calculation in both ways:
1.) Manual Calculation Technique: It is the conventional process to know your Fixed deposit interest calculation. The formula for manual fd calculation is used as below:

Where,A = Final Amount
P = Principal Amount (initial investment)
r = Annual Nominal Interest Rate (as a decimal, not in percentage)
n = Number of times the interest is compounded per year
t = Number of years

2.) Online Calculator Technique: Nowadays online FD calculator is very amazing technique and it is a very useful online tool that helps you to easily calculate your Fixed deposit return. Online FD calculators uses simple technique in which you need to put your amount, tenure, interest rate and can get accurate results instantly. You can easily calculate and compare the interest receivable by changing the deposit amount.

Mar 18, 2018 | Finance

### How to calculate interest on fixed deposit if tenor is 3 years?

principle X interest rate X term
deposit by interest rate by the length of the term

Jul 28, 2016 | investopedia.com

### Can you make deposits by phone if you have a personal checking account? I live very far from the bank and don't know how often I can get there.

Sure! Phone and online banking options are pretty standard in all US banks these days. There are even mobile banking apps if you have a smart phone and even if you don't, just look at your bank's website and search for a mobile banking option. You can take a snapshot of the check you want to deposit and send it to the bank for depositing. Good Luck.

Aug 13, 2013 | Finance

### Can anyone recommend me website for financing an RV?

You can check http://sumnerrv.com/ for financing your RV.

Nov 16, 2012 | Cars & Trucks

### My name is willie berry and i am try see when i am going to get payed can you let me know

Google racks up the money you've made by the end of the month, then they go through a two week process of calculating it and checking the statistics of your traffic and ad clicks. You will then be paid after if you've been accepted.

For example.

Ad Clicks for the Month of April will be processed on the first day of May, two weeks of checking over the traffic & ad clicks minimum, then the payment should be received by the end of the month of May.

### Bank process in daily interest calculation

I want how i can calculate daily profit /loss calculation on investment

Sep 07, 2009 | Microsoft Step by Step Visual Basic 6.0...

## Open Questions:

#### Related Topics:

8,348 people viewed this question

Level 3 Expert

Level 3 Expert