Recurring Deposit Details
RD Result
Total Investment
₹
Interest Earned
₹
Maturity Value
₹
✔ Calculated using standard bank RD formula
How Recurring Deposit (RD) Returns Are Calculated
A Recurring Deposit (RD) is a savings investment where you deposit a fixed amount every month for a chosen period. Each monthly deposit earns interest for a different duration, which makes RD returns slightly more complex than lump-sum investments.
How Interest Works in RD
- Interest is usually compounded quarterly by Indian banks
- The first monthly deposit earns interest for the full tenure
- The last monthly deposit earns interest for the shortest duration
- Total maturity value is the sum of interest earned on all deposits
RD Calculation Formula (Indicative)
Maturity Amount = Sum of each monthly deposit compounded for remaining period
In practice, banks calculate RD returns by applying interest separately to each monthly deposit based on the remaining tenure.
What Affects Your RD Returns?
- Monthly deposit amount: Higher deposits lead to higher maturity value
- Interest rate: Even small rate changes impact long-term returns
- Tenure: Longer tenure allows more compounding
- Missed installments: Can reduce interest earnings
Important Notes
- RD interest rates vary across banks and may change over time
- Premature withdrawal may attract penalties
- Interest earned on RD is taxable as per income tax rules
This RD calculator provides an estimate based on commonly used bank compounding practices. Actual maturity amount may differ slightly depending on your bank’s specific rules.