Introduction
A Recurring Deposit (RD) is a fixed-income savings instrument where you deposit a fixed amount monthly for a predetermined tenure. Indian banks use quarterly compounding to calculate RD interest, making it a safe option for conservative investors.
Numverto RD Calculator computes maturity amount and total interest earned using the standard quarterly compounding method. Compare with SIP Calculator for market-linked alternatives or read our RD guide.
RD Maturity Calculation
Each monthly deposit P earns quarterly compounded interest at rate r/4 for its remaining tenure. Total maturity = sum of each installment grown to maturity date.
Step-by-Step Examples
₹5,000/month at 7% for 5 years
Total deposited: ₹3,00,000. Interest earned: ₹58,637. Maturity: ₹3,58,637 approximately.
₹10,000/month at 6.5% for 3 years
Total deposited: ₹3,60,000. Interest earned: ₹36,833. Maturity: ₹3,96,833 approximately.
Real-Life Applications
- Safe monthly savings with guaranteed returns
- Short-to-medium term goal planning (1-5 years)
- Senior citizen fixed income planning
- Post office RD investment comparison
- Emergency fund building with fixed discipline
Advantages of Using This RD Calculator
- Month-wise breakdown table showing each deposit growth
- Uses quarterly compounding as per Indian bank standards
- Instant calculation with no signup needed
- Compare across different rates and tenures easily
- Indian rupee formatting for realistic projections
Common Mistakes to Avoid
- Assuming monthly compounding — Indian banks use quarterly compounding for RD
- Not accounting for TDS on interest above ₹40,000/year
- Missing installments can attract penalty or account closure
- Comparing RD with SIP without considering risk difference
- Ignoring inflation — real returns on RD may be negative after tax