RD Calculator
Bank-style quarterly compounding
₹5,000
36 months (3 yrs)
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Maturity value after tenure
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Total deposited
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Interest earned
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vs same money in FD
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Avg yield
RD builds discipline; FD beats bulk returns
For the same ₹5K × 36 months, an FD locks the entire ₹1.8L upfront at 7% and earns more than a RD that gradually deploys. But RD's monthly habit is the reason middle-class India saves.
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How RD maturity is calculated
RBI and Indian banks compound RD quarterly. Each monthly instalment earns interest from its deposit date. Formula chains per-quarter blocks using FV of ordinary annuity:
M = P × [(1+r/4)^(n/3) − 1] / (1 − (1+r/4)^(−1/3)).
- RD at 6.8% vs FD at 7% on ₹5K × 36mo: RD maturity ≈ ₹2,00,031 · FD ₹2,21,640 (if you'd deposited ₹1.8L upfront)
- Missed instalment typically costs 1.5–2% penalty per missed month
- Interest is taxable as income at your slab (unlike EPF/PPF)
Auto-sweep: many banks (HDFC, ICICI) auto-sweep excess savings into RDs — check if yours does. Set the ₹5K auto-debit right after salary.