RD Calculator
Monthly RD deposits to maturity value.
- Deposits₹3 L
- Interest₹59.66K
Uses standard quarterly-compounding RD formula. Bank rounding may differ by a few rupees.
How it works
Each monthly deposit earns interest from the month it is made, compounded quarterly like an FD. Earlier deposits earn the most — which is why longer RDs grow disproportionately.
Example
₹5,000/month at 7% for 5 years matures to about ₹3.6 lakh — you deposit ₹3 lakh and earn roughly ₹60,000 in interest.
FAQs
RD or SIP — which is better?
RDs give fixed, safe returns (~7%). Equity SIPs average higher (~12%) over long periods but with market risk. Match the choice to your goal's horizon and your risk appetite.
What if I miss an RD instalment?
Banks charge a small penalty per missed month, and repeated misses can close the account early. Some banks allow standing instructions to avoid this.
Can I close an RD early?
Yes, but you usually get savings-account interest instead of the RD rate. Keep an emergency fund so you rarely need to break deposits.