RD Calculator
Calculate your Recurring Deposit maturity amount with quarterly compounding and senior citizen rates.
$10,000
6.5%
24 months
Account Type
Maturity Amount
$258,232
Total Deposited
$240,000
Total Interest Earned
$18,232
Effective Annual Rate
6.66%
About Recurring Deposit Calculator
Calculate your RD maturity with quarterly compounding, senior citizen rates, and growth visualization.
How Recurring Deposit Compounding Works
A Recurring Deposit (RD) is a fixed-income savings instrument where you deposit a fixed sum every month. Indian banks compound RD interest quarterly, meaning interest is added to your balance every 3 months — not monthly or annually.
This quarterly compounding gives you a higher effective annual rate (EAR) than the nominal rate. Our calculator uses the authoritative iterative RD formula used by Indian banks and the RBI.
RD vs FD vs SIP
RDs are ideal for building a savings habit with predictable, guaranteed returns. Compare with alternatives:
- FD: Lump-sum deposit, same quarterly compounding. Suitable if you have a large sum to invest at once.
- PPF: 15-year lock-in, tax-free returns, slightly lower liquidity but no tax on maturity.
- SIP: Market-linked, higher long-term returns potential but no capital protection.
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How is Recurring Deposit interest calculated?
RD interest is calculated using quarterly compounding. Each month's deposit earns interest from the date of deposit till maturity, compounded quarterly at the applicable interest rate.
What is the benefit of senior citizen RD rates?
Most Indian banks offer 0.25% to 0.50% higher interest rates for senior citizens (age 60+) on RD accounts. This calculator adds 0.50% to the entered rate for senior citizens.
What is the minimum tenure for an RD account?
The minimum tenure for a Recurring Deposit is typically 3 months. Most banks offer RD tenures ranging from 3 months to 10 years.