Estimate the maturity value of your recurring deposit using the standard quarterly-compounding formula used by Indian banks.
Enter your monthly deposit amount, interest rate, and tenure to estimate the maturity value.
Interest is compounded quarterly, which is how most Indian banks and post offices calculate RD maturity value.
Enter your details and hit calculate
Calculate to see the step-by-step RD maturity calculation.
A Recurring Deposit (RD) is a savings instrument where you deposit a fixed amount every month for a chosen tenure, and the bank pays interest on it, compounded quarterly. It's a popular option for disciplined, low-risk saving since it combines the habit of a monthly SIP with the safety of a bank fixed deposit.
Formula used: M = R × [(1+i)ⁿ − 1] ÷ (1 − (1+i)^(−1/3)), where R is your monthly installment, i is the quarterly interest rate (annual rate ÷ 400), and n is the total number of quarters in your tenure. This is the standard formula used by most Indian banks and India Post to compute RD maturity value.
Worked example: for a monthly deposit of ₹5,000 at 6.5% p.a. for 24 months (8 quarters), the quarterly rate i = 6.5/400 = 0.01625. Applying the formula gives a maturity value of roughly ₹1,29,000 against a total investment of ₹1,20,000 — an interest earning of about ₹9,000 over two years.
Unlike a fixed deposit where the entire principal earns interest from day one, in an RD each monthly installment earns interest only from the date it is deposited, which is why the effective yield is a bit lower than the quoted interest rate for the same tenure. Premature withdrawal of an RD usually attracts a penalty and a lower effective interest rate, so RDs work best when you're confident you won't need the money before maturity.
This calculator is for educational planning purposes only. Actual maturity value may vary slightly depending on your bank's exact compounding convention; please confirm with your bank or post office for the precise figure.
RD interest is compounded quarterly at most Indian banks and India Post, which is why the formula uses a quarterly rate rather than a simple annual or monthly rate.
Most banks charge a small penalty for delayed monthly installments, and missing too many can lead to the account being closed before maturity. This calculator assumes all installments are paid on time.
Yes, interest earned on an RD is fully taxable as per your income tax slab, and banks deduct TDS if the interest earned crosses the prescribed threshold in a financial year.
Yes, premature withdrawal is usually allowed but typically comes with a lower effective interest rate and sometimes a penalty, so it's best treated as a last resort rather than a routine option.