Recurring Deposits (RD) are ideal for building a savings habit — you deposit a fixed amount every month and earn compound interest at rates comparable to FDs. Popular among salaried individuals and students, RDs help you accumulate a meaningful corpus without requiring a large upfront investment. Use the calculator above to plan your RD.

RD Maturity for Different Monthly Deposits

Monthly Deposit	1 Year	3 Years	5 Years
₹500	₹6,250	₹19,850	₹35,200
₹1,000	₹12,500	₹39,700	₹70,400
₹5,000	₹62,500	₹1,98,500	₹3,52,000
₹10,000	₹1,25,000	₹3,97,000	₹7,04,000

*Assuming 6.5% p.a. with quarterly compounding. Current rates vary by bank.

RD vs FD — Which is Better?

Factor	RD	FD
Investment Pattern	Monthly installments	Lump sum at once
Minimum Amount	₹100-500/month	₹1,000-10,000
Interest Rate	Similar to FD	6-7.5% p.a.
Best For	Regular savers, salary earners	Surplus lump sum, emergency fund

How to Calculate RD Maturity Amount

In plain words

Recurring Deposit (RD) interest is compounded quarterly. Each monthly installment earns interest for its remaining tenure — earlier deposits earn more due to longer compounding periods. Banks calculate interest on a quarterly basis for RD accounts.

How the calculation works

M = R × ((1 + r)^n - 1) / (1 - (1 + r)^(-1/3))

Where:
M = Maturity Amount
R = Monthly Deposit
r = Quarterly Interest Rate (Annual Rate ÷ 4 ÷ 100)
n = Number of Quarters

A quick example

Let us calculate RD returns for a typical savings plan:

Monthly Deposit:₹5,000

Annual Interest Rate:6.5%

Tenure:5 years (60 months)

Step by step

1.Quarterly rate = 6.5% ÷ 4 = 1.625% = 0.01625
2.Total quarters = 5 × 4 = 20 quarters
3.Each monthly installment earns compound interest quarterly
4.Total deposited = ₹5,000 × 60 = ₹3,00,000
5.The formula accounts for each installment earning interest for its specific duration

So the answer is: Maturity Amount ≈ ₹3,52,000 | Total Interest ≈ ₹52,000 | Effective Returns: ~17.3%

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Frequently Asked Questions

How is RD interest calculated?

RD interest is compounded quarterly. Each monthly installment earns interest for its remaining tenure. The formula is: M = R × ((1+r)^n - 1) / (1-(1+r)^(-1/3)).

What is the current RD interest rate?

RD interest rates vary by bank. Currently, most banks offer 5.5% to 7.5% per annum for general public, with higher rates for senior citizens.

What is the minimum RD deposit?

Most banks require a minimum monthly deposit of ₹100 to ₹500 for RD accounts. The maximum has no upper limit.

Can I break RD before maturity?

Yes, but premature withdrawal may attract a penalty of 0.5% to 1% on the applicable interest rate.