Savings growth
Calculate the maturity value of your recurring deposit with compound interest.
Maturity value
₹3,60,053
after 60 months
The formula compounds monthly: M = P × [(1+i)^n - 1] / i × (1+i), where i = annual rate ÷ 1200. This assumes deposits made at the start of each month.
A Recurring Deposit is a fixed-income investment where you deposit a fixed sum each month for a set period (3 months to 10 years) and earn a guaranteed interest rate, typically 3–8% per annum depending on the bank and tenure. The interest compounds quarterly and is added to your principal at maturity. RDs are ideal for conservative investors seeking steady growth on regular savings.
The RD calculator applies the standard RD interest formula which compounds quarterly. For each monthly deposit, the calculator tracks how long it sits in the account and accumulates interest at the stated rate. All deposits together, plus the total compound interest earned on them, gives your maturity amount. Banks credit interest every quarter, so a deposit made in month 1 earns interest for all remaining quarters, while month 12's deposit earns less.
M = R × [((1 + i)^n − 1) / i] × (1 + i)M is maturity amount, R is monthly deposit, i is quarterly interest rate (annual rate ÷ 4 ÷ 100), and n is the total number of quarters (tenure in years × 4). The formula compounds quarterly and assumes deposits are made at the beginning of each month.
| Input | Result | Notes |
|---|---|---|
| Monthly deposit: ₹5,000 | Tenure: 5 years | Annual rate: 5% | Maturity amount: ₹328,247 | Interest earned: ₹28,247 | A modest ₹5,000 monthly deposit grows to over ₹3.28 lakhs in 5 years with a typical bank RD rate. |
| Monthly deposit: ₹10,000 | Tenure: 3 years | Annual rate: 6% | Maturity amount: ₹366,720 | Interest earned: ₹6,720 | Shorter tenure means less interest, but you access your money sooner with ₹3.67 lakhs capital. |
| Monthly deposit: ₹2,000 | Tenure: 10 years | Annual rate: 5.5% | Maturity amount: ₹268,904 | Interest earned: ₹28,904 | Long-term RD with lower monthly amount still builds significant corpus, ideal for students or part-time earners. |
Most banks allow RDs from ₹100–₹500 minimum monthly deposit with no upper limit. Check your bank's terms; some offer higher rates for bulk deposits of ₹50,000+.
Yes, most banks allow premature withdrawal after 6 months, but you forfeit 0.5–1% interest compared to the full tenure rate. Early closure within 3–6 months may incur penalties.
Interest is compounded quarterly (every 3 months) and credited to your RD account. This means you earn 'interest on interest,' boosting your maturity amount.
Yes, RD interest is treated as income and taxed per your slab. If annual interest exceeds ₹40,000 (₹50,000 for seniors), the bank deducts TDS at 20%.
RD requires fixed monthly deposits; FD is a lump-sum deposit. RDs suit savers without large upfront capital; FDs suit those with one-time savings and are often higher-yielding per rupee.
Most banks offer loans up to 75–90% of your RD maturity value at interest rates 1–3% above the RD rate, useful if you need urgent funds without closing your RD.