Recurring Deposit (RD) Calculator
Calculate the maturity amount and interest earned on your recurring deposit.
Tip: RD is an excellent way to build a habit of saving regularly. Even small monthly amounts can grow into a significant corpus over time.
Understanding Recurring Deposits (RD)
A Recurring Deposit is a special type of term deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to Fixed Deposits.
How is RD Interest Calculated?
In an RD, interest is compounded quarterly. The maturity amount is calculated based on each installment's investment period. The formula used is:
M = R * [(1+i)^n - 1] / [1 - (1+i)^(-1/3)]
- M: Maturity Value
- R: Monthly Installment
- i: Quarterly Rate of Interest (r / 400)
- n: Number of Quarters