Recurring Deposit Calculator
RD maturity with quarterly compounding.
Inputs
This calculator applies to India — the rules behind it are Indian tax/regulatory rules, not just the currency, so it isn't shown in other currencies.
This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.
Formula
Maturity = Σ Monthly deposit × (1 + r/4)^(remaining quarters)
Each monthly instalment earns interest from the date of deposit until maturity, compounded quarterly. Earlier instalments earn more interest than later ones because they've been invested longer — the sum of individually compounded instalments gives the maturity value.
Worked example
A ₹10,000/month RD at 7% for 5 years (60 months) with quarterly compounding matures at about ₹7.2 lakh — ₹6 lakh deposited and roughly ₹1.2 lakh in interest. The first instalment earns interest for all 60 months; the last earns almost none.
Where this can give the wrong answer
- Premature RD closure attracts a penalty (typically 1% below the contracted rate) — this assumes full tenure at the quoted rate.
- TDS applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens) — maturity shown is pre-TDS.
- Post-office RD and bank RD use the same compounding convention but may differ slightly in day-count — this uses the standard quarterly-compounding formula.
FAQ
- RDs offer guaranteed returns but taxable interest at your slab rate. SIPs in equity funds offer market-linked returns with potential LTCG benefits but no guarantee. RDs suit short-term, fixed goals; SIPs suit long-term wealth building.