RD Details
₹100₹1 L
1%15%
1 yr10 yrs
Maturity Amount
₹--
at the end of tenure
Total Deposited--
Interest Earned--
Absolute Return--
Deposits vs Interest
Deposited
Interest

Formula

M = R × [(1+i)n − 1] / (1-(1+i)-1/3)

R = Monthly installment   i = Rate/400 (quarterly)   n = Quarters

Indian banks use quarterly compounding for RDs. The formula sums the future value of each monthly deposit compounded for its remaining duration using quarterly compounding.

Frequently Asked Questions

Each monthly deposit earns interest for the remaining months of the RD tenure, compounded quarterly. The bank calculates maturity as the sum of future values of all deposits.
Post Office RD currently offers 6.7% p.a. with quarterly compounding and sovereign guarantee. Bank RDs range from 6.0-7.5% with DICGC insurance up to ₹5 lakh. Post Office is safer; banks may offer higher rates.
Yes. RD interest is taxable as per your income tax slab. TDS is deducted at 10% if total bank interest (FD+RD) exceeds ₹40,000 per year (₹50,000 for senior citizens).