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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 installment every month, and each installment earns interest from the month it is paid until maturity — so the first installment earns for the whole tenure and the last one for a single month. Indian banks credit that interest on a quarterly rest, which gives the standard formula: maturity = the sum, over every installment, of deposit × (1 + rate/4) raised to the number of quarters that installment stays on deposit. This calculator evaluates exactly that, so its figure should line up closely with your bank's own RD calculator rather than approximating it. Remaining assumptions: the quoted rate holds for the full tenure (banks fix the rate at booking, so this normally holds), every installment is paid on schedule, and the figure shown is before TDS on the interest earned.
Each monthly installment earns interest from the month it is paid until maturity, with interest credited on a quarterly rest. So maturity is the sum, across all installments, of deposit × (1 + annual rate ÷ 4) raised to the number of quarters that installment stays deposited. An installment paid in month one of a five-year RD compounds for twenty quarters; the final installment compounds for roughly a third of one.
It uses the same quarterly-rest formula banks do, so any remaining difference is usually rounding — some banks round each quarter's interest to the rupee, and some apply a slightly different day-count for part-quarters. Expect a match to within a few rupees rather than to the paisa.
Not quite — the maturity arithmetic is the same, but the Post Office scheme runs a fixed five-year term at a rate the Ministry of Finance sets and reviews quarterly, rather than a tenure and rate you agree with a bank. Use the Post Office RD calculator for that.
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.