Recurring Deposit (RD) Calculator: Maturity Amount and Interest
Find the maturity value of a monthly recurring deposit, using the quarterly compounding Indian banks apply.
How RD interest is calculated
In a recurring deposit you put in a fixed amount every month for a fixed period. Each instalment earns interest for the time it stays with the bank, and Indian banks add the interest quarterly. The maturity amount is:
M = D × ((1 + i)n − 1) ÷ (1 − (1 + i)−1/3)
- D is the monthly deposit.
- i is the quarterly interest rate: the yearly rate divided by 400.
- n is the number of quarters, which is the number of months divided by 3.
Worked example
Depositing ₹5,000 every month for 5 years at 6.5% gives about ₹3,54,954 at maturity. You deposit ₹3,00,000 in total, so the interest is about ₹54,954.
Things to know before you start
- Miss a payment, pay a penalty. Banks charge a small fee for late instalments, and repeated misses can close the account early. Setting up an auto-debit avoids this.
- Tenure. Most banks offer RDs from about 6 months to 10 years.
- Tax. RD interest is taxable, and TDS can apply above the limit set by the tax rules. Check current rules with your bank.
- Deposit insurance. Bank deposits are insured by the DICGC up to ₹5 lakh per depositor per bank.
- Rates vary. Rates differ between banks and change over time. Use the rate your bank quotes.
Common questions
RD or SIP: which is better?
They are different products. An RD has a fixed, known return set when you open it. A mutual-fund SIP has no guaranteed return. This calculator covers only bank recurring deposits.
Can I withdraw an RD before maturity?
Usually yes, but with a lower rate or a penalty. Ask your bank for its exact terms.
Where can I find my bank's RD rate?
On the bank's website or at the branch. If you also want to compare a lump sum deposit, try the FD calculator.
More tools
- Loan EMI Calculator: Monthly Instalment, Interest and Schedule
- Fixed Deposit (FD) Calculator: Maturity Amount and Interest
- Find IFSC Code
This calculator gives an estimate for information only and is not financial advice. Banks may calculate interest differently (for example rounding, compounding conventions, fees and taxes), so the amount your bank quotes can vary. Please confirm the exact figures with your bank.