Recurring Deposit (RD) Calculator
Calculate maturity values and total interest earned on your monthly recurring deposits with Indian banks and Post Office using RBI quarterly compounding.
What Is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a structured savings scheme offered by Indian commercial banks and the India Post Office. It enables individuals to deposit a predetermined sum of money every month for a fixed tenure (from 6 months up to 10 years) at a guaranteed interest rate.
Unlike a Fixed Deposit which requires a large lump sum upfront, an RD is designed for salaried earners who wish to build a guaranteed corpus through disciplined monthly contributions without exposing their principal to equity market volatility.
How Does an RD Calculator Work?
An RD calculator models the precise compound interest accrued on every individual monthly deposit:
- First Installment: Compounds interest for the full tenure of n months.
- Second Installment: Compounds interest for n - 1 months.
- Final Installment: Compounds interest for 1 month.
By summing the compound values of all installments, the calculator provides the exact maturity payout.
RD Compound Interest Formula
In India, banks compound RD interest on a quarterly basis. The standard mathematical formula for RD maturity value is:
Key Benefits of Recurring Deposits
Guaranteed Payout
Interest rates are locked in at opening, fully insulating your capital from interest rate cycles.
Disciplined Savings
Automated monthly auto-debits foster structured wealth accumulation for short-term goals.
Low Minimum Deposit
Start with as little as ₹100/month at Post Office or major public and private sector banks.
Senior Citizen Premium
Senior citizens enjoy an extra 0.50% to 0.75% p.a. interest rate across all tenure options.
Frequently Asked Questions
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