How Recurring Deposit (RD) Maturity Is Calculated

A recurring deposit is like a fixed deposit you feed monthly — ideal if you want the safety and guaranteed return of an FD but don't have a lump sum to start with. Because each monthly instalment is deposited at a different time, the maturity maths is a little different from a one-shot FD.

How each instalment grows

RDs compound quarterly, like FDs. Each monthly deposit earns interest for the number of months remaining until maturity — so your first instalment grows the most and your last grows the least. Add up every instalment with its compounded interest and you get the maturity value. The RD calculator does this month by month for you.

RD vs FD — which should you pick?

Choose an FD if you already have a lump sum to invest today. Choose an RD if you want to build savings gradually from your monthly income. For the same rate and total amount, an FD earns a bit more (all the money is working from day one), but an RD is far easier to start and builds a saving habit.

Tax on RD interest

Like FDs, RD interest is taxable at your slab rate and subject to TDS once it crosses the annual threshold. The calculator shows pre-tax maturity.

The bottom line

An RD turns small monthly amounts into a guaranteed lump sum. Enter your monthly deposit, rate and tenure in the RD calculator to see your maturity value and total interest — and if you have a lump sum instead, compare it with an FD.