Recurring Deposit (RD) Calculator
💡 RD (Recurring Deposit) Made Simple
What is RD?
A Recurring Deposit is a type of fixed deposit where you deposit a fixed amount every month for a specific tenure and earn interest on it. At maturity, you receive the total deposit plus interest.
📊 RD Formula (India)
Maturity Amount = Σ [P × (1 + r)^q]
- P = Monthly deposit
- r = Quarterly interest rate (Annual ÷ 4 ÷ 100)
- q = Number of quarters remaining for each installment
- Σ = Sum of all installments with interest
🔄 How It Works
- Monthly deposits: You deposit a fixed amount every month
- Interest accrues quarterly: Each installment earns interest until maturity
- Total interest depends on monthly deposit, interest rate, and tenure
✅ Why RD is Useful
- Save money systematically every month
- Earn higher interest than a savings account
- Suitable for medium-term financial goals
💡 Pro Tips to Maximize RD Returns
- Longer tenure → more interest earned
- Higher interest rate → higher maturity amount
- Consider banks with better RD schemes for optimal returns