Saving a fixed amount every month in a bank recurring deposit? See exactly what it adds up to at maturity.
Illustrative projection using the assumptions you entered. Market returns are not guaranteed; actual results will differ. This is an educational tool, not financial advice.
A Recurring Deposit (RD) is like a fixed deposit built month by month: you deposit a fixed amount every month, and each deposit earns interest from the month it is made. Indian banks compound RD interest quarterly, so earlier deposits — which stay invested longest — earn the most.
Here P is the monthly deposit, i is the quarterly rate (annual rate ÷ 4), and n is the number of quarters. Because each monthly deposit earns interest for a different length of time, the formula adds up all deposits with their individual compounding.
An RD suits short, dated goals — next year's school fees, a festival purchase, a down payment in two or three years — where certainty matters more than growth. For goals beyond five years, compare the post-tax RD return with what a conservative mutual fund strategy could do, keeping risk in mind.
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