What Is a Recurring Deposit (RD)?
A recurring deposit is a savings arrangement in which you contribute an agreed amount at regular intervals, commonly each month. Banks specify deposit dates, interest rates, maturity dates, and treatment of missed installments. Unlike an FD, which normally begins with a single deposit, an RD grows through repeated contributions.
How to Use the RD Calculator
- Enter your monthly deposit.
- Enter the nominal annual interest rate in percent.
- Set the deposit tenure in months.
- Review the maturity amount, total deposited, and estimated interest.
- Expand the year-wise breakdown to compare total contributions with accumulated interest.
Currency selection only changes the displayed denomination; it does not perform a currency conversion.
How This RD Interest Calculation Works
This calculator uses an illustrative quarterly-credit schedule:
- A monthly installment is deposited at the start of each month.
- Interest for each month is calculated on the existing credited balance plus that month’s deposit, at the assumed monthly rate of annual rate ÷ 12.
- Interest accumulates separately until the end of months 3, 6, 9, and so on; at those points it is credited to the balance and begins earning interest in subsequent months.
- If the tenure ends partway through a quarter, uncredited interest is settled at maturity.
- No tax, penalty, fee or day-count adjustment is included.
This is a transparent projection, not a claim that every Indian bank calculates RD interest in exactly this way. In particular, different installment dates and day-count conventions may change your official maturity value.
Symbols and Definitions
| Symbol | Description |
|---|---|
| D | Monthly deposit |
| i | Nominal annual rate ÷ 12 (expressed as a decimal) |
| m | Number of months |
| B | Current credited balance |
| I | Accrued interest awaiting quarterly credit |
At each month, the deposit is added to B and interest equal to B × i is added to I. At each quarter end, I is added to B and reset to zero. At maturity, any outstanding I is included in the final balance.
Total deposited = D × m
Interest earned = Maturity value − Total deposited
Example: Monthly Savings Plan
Suppose you deposit ₹5,000 per month for 60 months at an assumed 7% nominal annual rate. Your total deposits are ₹3,00,000. The calculator estimates how additional quarterly-credited interest increases the maturity value. Change the rate or tenure to see how the final balance responds.
RD vs. SIP vs. FD
| Product | Contribution pattern | Nature of projected return |
|---|---|---|
| RD | Regular installments | Contractual bank interest, subject to terms |
| FD | Usually one lump sum | Contractual bank interest, subject to terms |
| SIP | Regular investments | Market-linked return assumption; not guaranteed |
A bank RD generally serves a different purpose from a market-linked SIP. Compare risk, liquidity, taxes and restrictions rather than maturity estimates alone.
What Can Change Your Actual Maturity Amount?
Official bank rules, installment timing, compounding conventions, rate adjustments, premature closure, missed-deposit penalties, TDS and income-tax treatment may change the amount received. Verify exact maturity figures with the deposit provider before making a financial commitment.