RD Calculator

A recurring deposit takes a fixed sum each month rather than a lump sum, and the arithmetic is less intuitive because each instalment earns interest only for the months remaining in the term. The first payment therefore earns considerably more than the last. This calculates the maturity value and the interest component from your monthly instalment, the rate and the term, which is what makes it possible to compare a recurring deposit fairly against other options. That structure explains a result people often find surprising: the effective return is lower than a fixed deposit of the same total amount at the same rate, because most of the money has been invested for less of the time. Missing an instalment usually attracts a penalty and reduces the maturity value, and interest is generally taxable, so the figure shown here is before tax.