Calculators

RD Calculator

Maturity value of a recurring deposit at a bank or post office, with each instalment compounded quarterly.

How it works

Every monthly instalment is its own small deposit that compounds quarterly until maturity. The first earns interest for the whole tenure and the last for just one month. Adding them up gives the maturity value, the same method banks and India Post use.

M = Σ R × (1 + r/4)^(months left ÷ 3)
R
Monthly instalment
r
Annual interest rate as a decimal
Months left
How long each instalment stays in the account

Worked example

₹5,000 a month in a 5-year post office RD at 6.7%.

  1. 1Instalments: 60 × 5,000 = ₹3,00,000
  2. 2The first instalment grows for 60 months: 5,000 × 1.01675²⁰ = ₹6,970
  3. 3The last grows for 1 month: 5,000 × 1.01675^(1/3) = ₹5,028
  4. 4Adding all 60 instalments gives the maturity value

The RD matures at ₹3,56,829, earning ₹56,829 of interest.

Frequently asked questions

RD or SIP: which is better?

An RD guarantees its rate and your capital; an equity SIP does not, but has historically returned far more over 5 years or longer. RDs suit money you need on a fixed date soon. For long-term goals, a SIP usually beats an RD comfortably after inflation.

What rate does the post office RD pay?

6.7% a year, compounded quarterly, for July–September 2026. The government reviews small savings rates every quarter, but the rate is fixed for the life of an account once it is opened.

Why does my RD earn less than an FD of the same total?

In an FD the whole amount earns interest from day one. In an RD, only the first instalment is invested for the full tenure; on average your money is in for about half of it.

Related calculators

More in Finance