RD Calculator

How a recurring deposit works

A recurring deposit lets you save a fixed amount every month for a chosen tenure, earning a guaranteed interest rate. Unlike a fixed deposit, where you lock a single lump sum, an RD builds the corpus gradually. Each monthly instalment earns interest for the number of quarters remaining until maturity, and interest is compounded quarterly — the same convention banks use for FDs.

The calculator treats every deposit as its own mini-FD compounding to the maturity date, then sums them, which is exactly how banks compute the final amount.

Why choose an RD

An RD is built for disciplined, goal-based saving with zero market risk. Because you commit to a fixed monthly deposit, it enforces a savings habit that many find easier than investing a lump sum. It suits short- to medium-term goals — a vacation, a gadget, a wedding contribution, or seeding an emergency fund — where you value certainty over the higher but variable returns of equity.

What affects your maturity value

• Monthly deposit — the fixed amount you commit each month.
• Interest rate — set by the bank at booking; seniors get a bonus.
• Tenure — longer terms let earlier deposits compound for more quarters.

Earlier instalments earn interest for longer, so they contribute more to the final corpus than later ones. Note that the maturity figure shown is pre-tax; RD interest is taxed at your slab rate.

Common mistakes to avoid

The most common slip is missing instalments — penalties add up and persistent defaults can shut the account. Automating the deposit fixes this. Savers also often overlook the tax drag: after slab-rate tax, an RD's real return may barely stay ahead of inflation, so using an RD for a 15-year goal usually underperforms an equity SIP. Finally, many stick with their home bank's rate without checking small finance banks or the post office, which frequently pay more for the same tenure.