What is an RD?
💡 A Recurring Deposit is a savings scheme where you deposit a fixed amount every month for a fixed tenure at a predetermined interest rate.
Recurring Deposits (RDs) are one of the most popular savings instruments for individuals who prefer small, regular contributions instead of lump-sum investments. An RD Calculator helps you estimate the maturity amount and interest earned.
Whether you're saving in India, using installment deposits in Europe, or planning disciplined savings in Asia, RDs encourage disciplined savings and build wealth gradually. Think of it as a piggy bank with interest — small deposits grow into a significant corpus over time.
Global Names
India
Recurring Deposit (RD)
US/Europe
Installment Savings Account
Asia
Monthly Savings Scheme
Key Feature
Disciplined monthly savings with guaranteed returns
How Does an RD Calculator Work?
The RD calculator uses the compound interest formula applied to monthly installments:
M = P × [(1 + i)^n - 1] / [1 - (1 + i)^(-1/3)]
Real-World Scenarios
👨💼 Raj's Education Fund (India)
Raj deposits ₹5,000 monthly for 5 years at 7%.
Total Invested
₹3,00,000
Maturity Value
≈ ₹3,60,000
💰 Raj uses this RD to fund his child's school fees with disciplined savings.
👩🎓 Emily's College Savings (US)
Emily deposits $200 monthly for 3 years at 5%.
Total Invested
$7,200
Maturity Value
≈ $7,800
💰 Emily builds a small fund for her daughter's college books.
👩🍳 Maria's Bakery Reserve (Spain)
Maria deposits €300 monthly for 4 years at 6%.
Total Invested
€14,400
Maturity Value
≈ €16,200
💰 Maria uses this RD to expand her bakery with guaranteed returns.
👨👩👧 Carlos' Vacation Fund (Mexico)
Carlos deposits MXN 2,000 monthly for 2 years at 6%.
Total Invested
MXN 48,000
Maturity Value
≈ MXN 51,500
💰 Carlos secures his family's vacation fund with disciplined monthly savings.
Frequently Asked Questions (FAQs)
Q: What is an RD calculator?
A: A tool to estimate maturity value and interest earned on recurring deposits based on monthly deposit, tenure, and interest rate.
Q: Can I compare multiple RDs?
A: Yes, by entering different rates and tenures to see which offers better returns.
Q: Does tenure affect returns?
A: Yes, longer tenure results in higher maturity value due to more deposits and accumulated interest.
Q: Are RD calculators accurate?
A: They provide close estimates; actual returns depend on bank policies and compounding frequency.
Q: Can I break an RD early?
A: Yes, but banks typically apply premature withdrawal penalties and reduced interest rates.
Q: Is RD suitable for beginners?
A: Yes, it's safe, predictable, and encourages disciplined monthly savings with guaranteed returns.
Q: Does compounding frequency matter?
A: Absolutely — quarterly compounding yields more than annual compounding for the same rate.
Q: Can I use it globally?
A: Yes, works with any currency and interest rate for recurring deposits worldwide.
Q: Is RD risk-free?
A: It's low-risk with guaranteed returns, but offers lower returns compared to market-linked investments.
Q: Why use an RD calculator?
A: To plan disciplined savings, get accurate maturity estimates, and avoid surprises at maturity.
Benefits of Using an RD Calculator
- ✓Accuracy: Eliminates manual calculation errors
- ✓Clarity: Shows exact maturity value and interest earned
- ✓Comparison Tool: Evaluate different banks and tenures
- ✓Financial Discipline: Encourages consistent monthly savings
- ✓Global Relevance: Works for RDs, installment deposits, and monthly savings schemes worldwide
Terms & Conditions
- Indicative Only: Results are estimates; actual maturity depends on bank policies.
- Exclusions: Taxes, premature withdrawal penalties, and fees may not be included.
- Market Variability: Interest rates may change for new deposits.
- Currency Impact: For international deposits, exchange rates may affect returns.
- Data Privacy: Calculator does not store personal financial data.