Recurring Deposit Calculator
Calculate RD (Recurring Deposit) maturity value. FV = P × ((1+r)^n - 1) / (1 - (1+r)^(-1)) × (1+r). Indian banking term deposit with fixed monthly contributions.
Formula
FV = P × ((1+r)^n - 1) / (1 - (1+r)^(-1)) × (1+r)
- Recurring Deposit: fixed monthly deposits + compounding interest
- Popular in Indian banks (HDFC, ICICI, SBI, etc.)
- r = Annual Rate / 100 / 12 (monthly)
- Interest compounds monthly
- Typically penalty for early withdrawal
Example
Inputs
- Monthly Deposit: 1000
- Annual Interest Rate (%): 6
- Tenure (months): 60
$1000/month, 6% p.a., 60 months: Deposit=$60,000, Interest≈$9,387, Maturity=$69,387
Frequently asked questions
What is RD?
Recurring Deposit: deposit fixed amount monthly, earn compound interest. Maturity = all deposits + interest.
How does interest differ from savings account?
RD typically has higher rate than savings. Withdrawals before maturity may incur penalty.