RD calculator
A recurring deposit (RD) takes the same sum every month for a fixed term and pays it back with interest at the end. Banks and the post office add the interest every quarter, so each month's deposit earns interest on its interest for as long as it is held.
What a recurring deposit pays at maturity: a fixed sum put in every month at a set rate
- Deposited
- ₹1,20,000
- Interest earned
- ₹9,099
- Maturity amount
- ₹1,29,099
Value at each quarter end
- Deposited
- Interest earned
What if
12 more months
₹2,00,686
₹71,588 higher
₹1,000 more a month
₹1,54,919
₹25,820 higher
0.5% more interest
₹1,29,776
₹677 higher
How it is worked out
Each month's deposit grows at the rate for the months it is held: deposit × (1 + r ÷ m)^(m × months held ÷ 12), where r is the yearly rate and m the times interest is added in a year (4 for quarterly). The maturity amount is the sum over every month.
For example, ₹100 a month for 60 months at 6.7% a year, added quarterly, comes to ₹7,136.58 at maturity: ₹6,000 deposited and ₹1,136.58 interest.
Tax deducted at source on interest is not taken off, and a deposit paid late, which most banks charge a penalty for, is not counted.