Calculate the maturity value of your recurring deposit based on your monthly installment, interest rate, and tenure.
Each monthly installment earns quarterly-compounded interest for the time it remains in the deposit. This calculator sums the maturity value of every individual installment:
M = Σ P × (1 + r/4)4ti
The first installment earns interest for the full tenure, while the last installment earns interest for only a fraction of a quarter — this calculator accounts for that installment-by-installment timing rather than treating the total as a single lumpsum.
Both involve regular monthly contributions, but an RD is a fixed-return bank deposit (like an FD paid in installments) while a SIP invests in market-linked mutual funds. RD returns are guaranteed and lower-risk; SIP returns are market-linked and variable.
Most Indian banks compound RD interest quarterly, similar to fixed deposits. Each monthly installment earns interest from the date it is deposited until the RD matures.
Yes, but premature withdrawal usually attracts a penalty, similar to fixed deposits — typically a reduction in the applicable interest rate.
Yes, interest earned on an RD is fully taxable as per your income tax slab, and TDS may be deducted if interest exceeds the prescribed threshold in a financial year.
Most banks charge a small penalty for missed or delayed RD installments, and the bank may not extend the maturity date — so the deposit could fall short of the originally projected maturity value.
A Recurring Deposit (RD) lets you build savings through fixed monthly contributions while earning guaranteed, bank-set interest — a good option if you want FD-like safety but don't have a lumpsum to invest upfront.
If you're open to market-linked returns instead of a guaranteed rate, compare this with our SIP Calculator, or check our FD Calculator if you do have a lumpsum amount ready to deposit instead.
