loading
loading
loading
Finance
Estimate the maturity value of a bank Recurring Deposit (RD) in India, given the monthly deposit, interest rate, and tenure.
A Recurring Deposit takes a fixed deposit every month and pays interest on the accumulating balance: balance_next = balance × (1 + monthly rate) + monthly deposit. Important simplifying assumption: real Indian bank RDs typically compound quarterly, but apply that quarterly compounding to a balance that is itself growing from fresh monthly installments — each installment effectively earns interest for a different number of quarters depending on when it was deposited, which is a more intricate calculation than a single compounding frequency. This calculator instead compounds monthly, matched to the monthly deposit frequency, as a close and simpler approximation. It will typically land within a percent or two of your bank's own RD maturity figure rather than matching it to the rupee. Other assumptions: the quoted rate holds for the full tenure, and the shown figure is before TDS on the interest earned.
Banks compound RD interest quarterly on a balance that grows from monthly installments, which is a more layered calculation. This calculator uses monthly compounding as a simpler, close approximation, so the figures typically differ by a small margin rather than matching exactly.
Most banks charge a penalty for a missed or delayed RD installment, which isn't modeled here — this calculator assumes every monthly deposit is made on schedule for the full tenure.
Yes, RD interest is taxable and banks deduct TDS above the prescribed threshold, similar to FDs. The maturity value shown here is before any tax deduction.