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About the RD Calculator
A recurring deposit is the deposit equivalent of a SIP: a fixed amount every month at a contracted rate, compounded quarterly. It suits short-term goals where capital safety matters more than return — a school fee due next year, or an insurance premium.
Because each instalment earns interest only for its remaining months, the effective return on the total invested is noticeably lower than an FD at the same headline rate. That is arithmetic, not a bad deal.
The formula
Each instalment is compounded for the exact period it stays on deposit.
Things worth knowing
Frequently asked questions
Each monthly instalment compounds quarterly for the number of months it remains on deposit, and the maturity is the sum of all of them. The first instalment earns for the full tenure, the last for a single month.
An RD guarantees the return and the capital; a SIP does not, but has historically delivered far more over long periods. Use an RD for goals inside three years and a SIP beyond five.
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