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Recurring Deposit Calculator

Calculate the maturity amount for your Recurring Deposit (RD) with compound interest.

Enter Details

₹
₹500₹1,00,000
1%15%

Calculation Results

Total Deposits₹3,00,000
Total Interest Earned₹59,663.95
Maturity Amount₹3,59,663.95
Effective Annual Yield3.69%

Breakdown

16.6%
Interest Earned
Deposits
Interest

Month-by-Month Growth

Month 1
₹5,029
Month 7
₹35,821.44
Month 13
₹67,701.04
Month 19
₹1,00,706.19
Month 25
₹1,34,876.63
Month 31
₹1,70,253.5
Month 37
₹2,06,879.39
Month 43
₹2,44,798.41
Month 49
₹2,84,056.21
Month 55
₹3,24,700.05
Month 60
₹3,59,663.95

RD Maturity Formula

M = P * ((1 + r/n)^(n*t) - 1) / (1 - (1 + r/n)^(-1/n))
  • M = Maturity Amount
  • P = Monthly Deposit (₹5,000)
  • r = Annual Interest Rate (7%)
  • n = Compounding Frequency (4 times/year)
  • t = Time (5 years)

Note: Standard RD accounts in India use quarterly compounding. Each monthly deposit earns compound interest for the remaining tenure.

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Learn About Recurring Deposits

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a type of term deposit offered by banks where you deposit a fixed amount every month for a predetermined period. It's an excellent savings tool for people who want to build a corpus through regular monthly investments. The interest earned is compounded quarterly in most cases, helping your money grow faster.

Benefits of Recurring Deposits

Disciplined Savings

Regular monthly deposits build a savings habit

Guaranteed Returns

Fixed interest rate ensures predictable returns

Flexible Tenure

Choose from 6 months to 10 years

Low Minimum Amount

Start with as little as Rs. 100 per month

RD vs Fixed Deposit

While both RD and FD are safe investment options, they serve different purposes:

  • 1

    Investment Pattern: RD requires regular monthly deposits, while FD needs a lump sum investment

  • 2

    Interest Rates: FD typically offers slightly higher interest rates than RD

  • 3

    Best For: RD is ideal for salaried individuals who can save monthly, FD suits those with surplus funds

  • 4

    Tax Treatment: Both have similar tax implications - interest is taxable as per income slab

Tips for Maximizing RD Returns

  • 1

    Compare interest rates across banks before opening an RD

  • 2

    Senior citizens often get 0.25-0.50% higher interest rates

  • 3

    Avoid premature withdrawal to prevent penalty charges

  • 4

    Set up auto-debit to never miss a monthly deposit