RD Calculator

What is a Recurring Deposit?

A Recurring Deposit (RD) is a savings scheme offered by banks where you deposit a fixed amount every month for a specified period. The money earns compound interest, making it ideal for regular savers who want to build a corpus over time.

How RD Interest Works

In an RD, each monthly deposit earns interest for the remaining period. The calculation uses the future value of annuity formula with compound interest.

Example Calculation

₹5,000 monthly deposit at 6.5% annual interest for 5 years (60 months):

• Total deposit: ₹3,00,000
• Interest earned: ~₹55,284
• Maturity amount: ~₹3,55,284

Key RD Features

• Regular savings: Disciplined approach to building wealth
• Fixed commitment: Same amount every month
• Guaranteed returns: Interest rate locked in upfront
• Flexible tenure: Usually 3 months to 10 years
• Safety: FDIC insured (varies by country)

Disclaimer

This calculator provides estimates based on the inputs you provide. Actual returns may vary based on bank policies and interest rate changes.