RD Calculator: How Recurring Deposit Maturity Is Calculated

What does a ₹5,000/month RD grow to? At a typical 6.8% rate over 5 years, depositing ₹5,000 every month grows to approximately ₹3,59,783 — you’d have put in ₹3,00,000 total, so that’s ₹59,783 in interest, more than a simple “just add up the deposits” estimate would suggest.

Why RD maturity is more than just your total deposits

Each monthly deposit in a Recurring Deposit starts earning interest from the day it’s made, and that interest itself compounds — typically quarterly for most Indian banks and the post office RD scheme. Your first deposit earns interest for close to the full 5 years, while your last deposit earns interest for only a few months, but because compounding is applied on the growing balance each quarter, the total interest adds up to noticeably more than a flat percentage of your total deposits would suggest.

Maturity table: ₹1,000 to ₹10,000 monthly deposit

At 6.8% interest, compounded quarterly, over a 5-year (60-month) RD:

Run your own monthly deposit, rate, and tenure through our RD Calculator for an exact maturity figure — rates vary somewhat by bank and by tenure, so confirm your specific bank’s current rate before relying on the 6.8% figure used above.

RD vs SIP for a fixed monthly saving habit

Both an RD and a SIP into a mutual fund reward the same monthly-saving discipline, but the return profile is very different: RD gives you a fixed, guaranteed rate with zero market risk, while an equity SIP has historically offered higher long-term returns but with real volatility along the way. RD suits a short, fixed goal (5 years, known amount needed); a SIP suits a longer horizon where you can ride out market swings. See how an equivalent SIP would compare with our SIP Calculator.