RD Calculator
Calculate returns on your Recurring Deposit
RD Details
Results
Formula
FV = P × [(1+r)^n - 1] / r × (1+r) (per deposit)Frequently Asked Questions
What is a Recurring Deposit (RD)?
A Recurring Deposit is a savings scheme offered by banks where you deposit a fixed amount every month for a predetermined period. It earns interest similar to Fixed Deposits and is ideal for people who want to save regularly.
How is RD interest calculated?
RD interest is calculated using quarterly compounding. The formula considers each monthly deposit as a separate investment that earns interest for the remaining tenure. Our calculator uses the standard quarterly compounding method used by Indian banks.
What is the minimum amount for RD?
Most banks in India allow RDs starting from ₹100 per month. There is usually no maximum limit. The tenure typically ranges from 6 months to 10 years.
Is RD better than FD?
Both serve different purposes. FD is ideal if you have a lump sum to invest, while RD is better for regular monthly savings. FD generally offers slightly higher returns since the full amount is invested from day one. RD is more suitable for building a savings habit.
Can I break my RD before maturity?
Yes, you can close your RD before maturity, but you will receive reduced interest (typically 0.5-1% less). Some banks may also charge a small penalty. It is generally better to continue the RD to get the full interest benefit.