Maturity value of monthly recurring deposits.
Calculate maturity values of monthly recurring deposits. Estimate total deposits and interest earned with quarterly compounding.
Where: M is maturity value; P is monthly deposit; i is quarterly rate (annual rate / 400); and n is total quarterly periods.
A Recurring Deposit enables individuals to deposit fixed sums monthly into a bank or post office account, earning guaranteed interest comparable to Fixed Deposits.
Indian bank RDs calculate interest on monthly installments using quarterly compounding, meaning earlier monthly deposits compound for more quarters than later ones.
RDs are ideal for structured savings like annual tuition fees, festival budgets, or emergency reserve build-ups without requiring large initial lumpsums.
Banks charge a small penalty fee for delayed RD payments and may lower final interest payouts if multiple installments are missed.
Yes, RD interest is fully taxable according to your income tax slab, and TDS applies if annual interest exceeds threshold limits.
No, monthly RD contribution amounts are fixed at account opening and cannot be altered during the tenure.