Understand your recurring-deposit estimate
Learn why deposit timing matters and how regular instalments build the maturity estimate.
How to use the RD calculator
- Enter the monthly deposit.
- Add the annual rate and duration.
- Choose the compounding frequency and compare total deposited with estimated interest.
Monthly contribution and duration
The total deposited equals the monthly contribution multiplied by the number of months. Longer terms add more instalments and give earlier deposits more time to earn interest.
Why instalments earn for different periods
Every instalment is treated separately. The first remains deposited for the full term, while each later instalment has one month less to earn interest.
Beginning-of-month assumption
Total deposited versus interest earned
Total deposited is the sum of instalments. Estimated interest is the maturity amount above that total before any applicable tax, fee, or penalty.
Benefits and common use cases
- Explore a regular savings pattern.
- Estimate a maturity amount for a chosen term.
- Separate deposits from estimated interest.
Limitations and assumptions
Actual results may differ because of deposit dates, missed instalments, day-count conventions, rounding, compounding rules, taxes, and institution-specific terms.
Missed instalments and premature closure
A missed deposit or early closure may change interest or trigger charges under the product rules. Check these terms directly with the institution.
Common RD calculation mistakes
- Assuming every instalment earns for the full term.
- Ignoring the modeled beginning-of-month timing.
- Using the wrong compounding frequency.
- Ignoring missed-instalment or closure terms.
Practical tips
- Match rate, duration, and compounding to the product document.
- Review total deposits separately from interest.
- Check the scheduled debit date.
- Understand missed-instalment and closure conditions.
RD versus FD
| Factor | RD | FD |
|---|---|---|
| Deposit pattern | Regular instalments | One-time principal |
| Interest period | Each instalment has a different remaining term | Principal generally earns for the full term |
| May suit users who | Prefer periodic deposits | Have a lump sum available |
| Actual outcome depends on | Dates, rate, compounding, and bank rules | Rate, term, compounding, and bank rules |