RD Explained: Monthly Deposits, Interest and Maturity

An RD builds maturity through recurring monthly deposits

A recurring deposit adds a fixed amount month by month rather than placing the full principal into the model at once. The RD Calculator uses the monthly deposit, entered annual interest rate and whole-year tenure to estimate total deposits, interest and maturity.

The result is a controlled projection under the calculator's timing and constant-rate assumptions. It is not a bank recommendation, a guaranteed return or a promise of the amount an institution will pay.

Read the inputs and results together

• Monthly deposit: the fixed contribution added in every modeled month.
• Entered annual interest rate: an illustrative constant percentage converted to a monthly equivalent by the engine.
• Tenure: a whole number of years; years multiplied by 12 gives the number of monthly deposits.
• Total deposits: the monthly deposit multiplied by the number of deposits.
• Estimated interest: the projected maturity amount minus total deposits.
• Estimated maturity: total deposits plus modeled interest under the stated assumptions.

Worked example: ₹10,000 monthly for three years

Consider ₹10,000 deposited monthly for three years at an illustrative entered annual rate of 7%. The tenure produces 36 deposits. The 7% input is an assumption for this example, not a current, market, typical, best or prevailing RD rate.

The calculator assumes beginning-of-month deposits

Each monthly deposit is added at the beginning of the modeled month and then receives that month's growth. In the 36-month example, the first contribution receives 36 monthly growth periods and the final contribution receives one, so installments do not all earn interest for the same duration.

See How RD Interest Is Calculated for the installment-specific timing mechanics.

An RD cash flow differs from one upfront deposit

Because RD capital enters month by month, it should not be treated as though the full amount was present from the start. The existing FD vs RD comparison owns the lump-sum-versus-recurring timing comparison.

What the projection does not model

The calculator uses a fixed monthly contribution, one constant entered annual rate, beginning-of-month timing and a fixed whole-year tenure. It returns summary totals and does not expose an installment schedule.

It does not model variable interest rates, missed or late installments, penalties, premature closure, tax, TDS, current bank rates, bank-specific contribution timing, bank-specific rounding or institution-specific contractual terms.

Read why an RD projection may differ from actual maturity, or enter a controlled scenario in the RD Calculator.