RD Calculator — Recurring Deposit Returns
Calculate your Recurring Deposit maturity with quarterly compounding. See exact interest earned on every rupee deposited.
RD Details
RD Maturity Amount
₹1.28 L
Tenure: 2 yrs 0 mo • Quarterly compounding
Total Deposited
₹1.20 L
Interest Earned
₹8,425
Return %
7.0%
RD Maturity
₹1.28 L
Quarterly Growth
Sponsored
Open an RD with High Interest Rates
Compare RD rates from 50+ banks and start a Recurring Deposit online.
Powered by Paisabazaar
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a savings scheme offered by banks and post offices where you deposit a fixed amount every month for a predetermined tenure. At maturity, you receive the total deposited amount plus interest — making it ideal for disciplined monthly savings towards a short-term goal. Unlike an FD where you invest a lump sum, RD allows you to build savings gradually. The interest rate is fixed at the time of opening and doesn't change during the tenure. Banks compound RD interest on a quarterly basis in India, giving a slightly higher effective return than simple interest. RD is insured by DICGC up to ₹5 lakh per depositor per bank, making it one of the safest savings instruments.
How to Use the RD Calculator
- 1.Monthly Deposit: Enter the amount you will deposit every month into your RD.
- 2.Interest Rate: Enter the annual rate offered by your bank (check current rates on the bank website).
- 3.Tenure: Select the duration in months (6 to 120 months).
- 4.Result: See maturity amount, total deposited, interest earned, and quarterly growth chart. Download as PDF for your records.
RD vs FD — Which is Better?
RD and FD serve different purposes. Choose based on whether you have a lump sum or monthly savings available.
Choose RD if…
- ✓You save monthly from salary
- ✓No lump sum available
- ✓Short-term goal (1–3 years)
- ✓Building a habit of saving
Choose FD if…
- ✓You have a lump sum to invest
- ✓Seeking maximum interest
- ✓Medium-term (3–10 years)
- ✓Bonus, gift, or inheritance received
RD Formula and Calculation Method
Indian banks calculate RD maturity using quarterly compounding. Each monthly deposit is treated independently as a mini-FD. Here is the formula and step-by-step method:
RD Maturity Formula (each deposit)
A = P × (1 + r/400)^(4t)
Where: A = Maturity value of one deposit, P = Monthly deposit amount, r = Annual interest rate (%), t = Remaining tenure in years for that specific deposit
Total Maturity Amount
Total maturity = Sum of all n individual deposit maturity values, where the first deposit earns interest for the full n months and the last deposit earns for 1 month only. This is why RD maturity is always higher than simple interest on the total deposited amount.
Example (₹5,000/month · 7% · 2 years)
Total deposited: ₹1,20,000 · Quarterly compounding adds ≈ ₹9,020 in interest · Maturity amount: ≈ ₹1,29,020
Post Office RD uses the same quarterly compounding formula at 6.7% (as of FY 2025-26) with a fixed 5-year tenure. Bank RD rates are bank-specific and updated periodically.