Recurring Deposit Calculator

Calculate maturity amount, interest earned, and quarterly compounding on bank Recurring Deposits (RD).

₹
₹ 500 ₹ 50,000 ₹ 1,00,000
%
1% 7.5% 15%
Yr
1 Yr 5 Yr 10 Yr
Calculation Breakdown Real-time
Total Value
₹ 0
Invested Amount
₹ 0
Est. Returns
₹ 0
Advertisement

How Does the Recurring Deposit Calculator Work?

A Recurring Deposit (RD) is a fixed-income savings product offered by Indian commercial banks and Post Offices. It allows individuals to invest a fixed monthly installment over a pre-determined tenure (from 6 months to 10 years) at a guaranteed interest rate.

Unlike simple monthly accumulation, commercial banks in India compound interest on Recurring Deposits on a quarterly basis under Reserve Bank of India (RBI) guidelines.

Formula & Mathematical Methodology

The standard Indian banking formula for RD maturity using quarterly compounding is:

M = P × [(1 + r/n)n×t] ∀ monthly installments

Where P is the monthly deposit, r is annual interest rate, n is 4 (quarterly compounding), and t is time in quarters remaining for each specific deposit installment.

Advertisement

Step-by-Step Practical Calculation Example

Depositing ₹5,00,00/month for 5 years (60 months) at an interest rate of 7.0% p.a.:

  • Total Capital Deposited: ₹3,00,000
  • Total Interest Earned: ₹59,795
  • Final Maturity Value: ₹3,59,795

Frequently Asked Questions

In accordance with RBI norms, interest on Indian bank recurring deposits is compounded quarterly on the cumulative balance.

Yes, RD interest is fully taxable as "Income from Other Sources" according to your applicable income tax slab. Banks deduct 10% TDS under Section 194A if total interest across deposits exceeds ₹40,000/yr (₹50,000 for senior citizens).

Yes, almost all Indian public and private banks offer an additional 0.50% to 0.75% interest rate for senior citizens (aged 60 and above).

Related Finance & Tax Calculators

SIP Calculator

Calculate future wealth and estimated returns on your Monthly Systematic Investment Plan (SIP).

Calculate →

EMI Calculator

Calculate Equated Monthly Installment (EMI) for Home Loans, Car Loans, and Personal Loans.

Calculate →

GST Calculator

Quickly add or remove Goods and Services Tax (GST) across 5%, 12%, 18%, and 28% tax slabs.

Calculate →