Recurring Deposit (RD) Calculator

A Recurring Deposit (RD) is a savings instrument offered by banks where you deposit a fixed amount every month for a chosen tenure and earn interest on it. RDs offer the discipline of regular saving combined with the security of guaranteed returns — similar to an FD, but with smaller, periodic contributions rather than one lump-sum deposit.

RD maturity is calculated by treating each monthly instalment as a mini Fixed Deposit. Interest is compounded quarterly (as per RBI guidelines for most bank RDs). The formula accumulates the future value of each monthly deposit for the remaining tenure, giving the total maturity amount at the end of the period.

Most banks offer RDs with tenures ranging from 6 months to 10 years. The minimum monthly deposit amount is typically ₹100–₹500 depending on the bank, while there is usually no upper limit on the monthly deposit. Interest rates vary by tenure and bank, similar to FD rates.

RDs are an excellent choice for individuals who want to build a savings habit with guaranteed returns. They are particularly suited for salaried individuals who can commit to a fixed monthly outflow. RDs provide better returns than a regular savings account and carry no market risk. However, for higher long-term wealth creation, instruments like SIPs in mutual funds may offer superior returns.