Chit Fund Calculator

An FD or RD pays you a fixed, guaranteed return with no counterparty risk beyond the bank. A chit fund instead pools members' contributions and rotates the payout via auction, so your effective cost or return depends on when you win — it can beat an FD/RD in some scenarios, but it also carries organizer and default risk that a bank deposit doesn't.

Only if it's run by an RBI/state-registered chit fund company operating under the Chit Funds Act. Unregistered or informal chit schemes offer little legal recourse if the foreman or a member defaults — always verify registration before joining.

Winning early gives you a lump sum sooner, useful if you need the money, but at a steeper discount and little dividend benefit. Winning late means a smaller discount (closer to the full chit value) plus dividends collected from earlier months, but your money stays locked in longer — the right choice depends on whether you need cash now or are optimizing for total return.

It's a simplified, average-case model using one flat bid-discount percentage across the whole tenure. Real chit funds see bids vary a lot month to month, so treat the results as a rough approximation of your average cost, not a month-by-month prediction.