RD Setup
Formatting choice only. No exchange rate conversion is applied.
₹ 5,000
₹
6.8%
%
5 Years
Years
? 0 (Inactive)
₹
Maturity Summary
Maturity Value
₹ 3,57,958
Total Invested
₹ 3,00,000
Interest Earned
₹ 57,958
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Recurring Deposit Calculation Formulas
For Recurring Deposits in India, banking institutions utilize a quarterly compounding model on individual installments:
M = P × [ (1 + i)n - 1 ] / [ 1 - (1 + i)-1/3 ]
Where:
- M = Maturity Value
- P = Monthly Recurring Installment
- i = Quarterly interest rate (r / 4)
- n = Total Quarters (months / 3)
- r = Annual Interest Rate
Recurring Deposit Annual Projections
| Year | Opening Balance | Yearly Contributions | Interest Earned | Closing Balance |
|---|
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Frequently Asked Questions
Yes, standard Recurring Deposits in almost all major banks compound the accumulated interest quarterly, which is exactly why the standard banking sum formula is used rather than basic linear multiplication.
No, once a Recurring Deposit account is opened, the monthly installment amount and interest rate slab are locked in and cannot be modified. If you wish to save more monthly, you must open a separate RD account.