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RD Calculator

Calculate the maturity amount and interest earned on your Recurring Deposit. Plan your monthly savings with different RD schemes and tenure options.

RD Investment Details

6.5%
5 years

RD Calculation Results

Monthly Deposit: ₹5,000
Total Deposits: ₹3,00,000
Maturity Amount: ₹3,51,435
Total Interest Earned: ₹51,435
Effective Annual Rate: 6.66%
Average Monthly Interest: ₹857
Maturity Date: December 2029

About Recurring Deposit (RD)

A Recurring Deposit (RD) is a special kind of term deposit offered by banks and financial institutions where you can deposit a fixed amount every month for a predetermined period and earn interest on it. It's an ideal investment option for people who want to save a small amount every month and earn a reasonable return on it.

Example Calculation:

For a ₹5,000 monthly RD at 6.5% interest for 5 years with quarterly compounding:

Total Deposits: ₹3,00,000

Maturity Amount: ₹3,51,435

Total Interest: ₹51,435

Effective Annual Rate: 6.66%

Key features of Recurring Deposits:

  1. Fixed Monthly Deposit: Same amount deposited every month
  2. Fixed Tenure: Predetermined investment period
  3. Guaranteed Returns: Fixed interest rate throughout tenure
  4. Compounding Benefit: Interest earned on interest
  5. Flexible Tenure: Usually 6 months to 10 years

RD vs Other Investment Options

RD vs FD: RD allows monthly deposits while FD requires lump sum investment.

RD vs SIP: RD offers guaranteed returns while SIP returns depend on market performance.

RD vs PPF: PPF has 15-year lock-in with tax benefits, RD has flexible tenure.

RD is suitable for salaried individuals who want to save a fixed amount monthly with guaranteed returns and capital protection.

RD Maturity Calculation

For compound interest RD:

M = P × [((1 + r/n)^(nt) - 1) / (r/n)] × (1 + r/n)

Where:

M = Maturity Amount

P = Monthly Deposit

r = Annual Interest Rate (decimal)

n = Compounding frequency per year

t = Time in years

Simple Interest RD Formula

M = P × n × (n + 1) / 2 × r / 12 + P × n

Where n = number of months

Effective Annual Rate

EAR = (1 + r/n)^n - 1

Current RD Rates (Approx.)

• SBI: 6.50% - 7.00%

• HDFC: 6.50% - 7.25%

• ICICI: 6.50% - 7.25%

• Axis Bank: 6.75% - 7.50%

• Post Office: 6.70%