Calculate banking maturity yields when saving a fixed sum every month at guaranteed rates.
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Fixed sum deposited into the RD account every month.
Guaranteed interest rate offered by the bank for RDs.
Total duration of the recurring deposit.
Interactive visual breakdown of principal invested vs. wealth gain / interest over time.
Comprehensive guide covering foundational concepts, regulatory rules, and advanced strategies.
A Recurring Deposit (RD) is a special term deposit offered by Indian banks and post offices that helps individuals with regular salaries save a fixed amount each month. Unlike an FD where you deposit everything upfront, an RD allows you to build a guaranteed savings corpus step-by-step without exposure to stock market risk.
Because each monthly deposit enters the bank at a different time, the first deposit earns interest for all $n$ months, while the last deposit earns interest for only 1 month. Banks calculate interest on each installment separately and compound accrued interest every quarter. Therefore, for the same total capital invested, an upfront FD always yields more than an RD because all funds are invested from day one.