How a recurring deposit grows.
A recurring deposit takes the same amount each month; each deposit compounds quarterly until the end. How the maturity amount is worked out.
By Suraj Kumar3 min read
A recurring deposit is a fixed deposit a month at a time. Here is how it adds up.
Each month's deposit.
Each deposit grows, compounded quarterly, for the months it stays in, so the first grows longest and the last hardly at all.
Banks differ a little.
This is how many Indian banks reckon an RD; banks round and compound in their own ways, so their figure can differ a little.
Tax.
Tax on interest is left out, as it depends on where you live and your income.
Further reading
Topics: rd calculator · recurring deposit · rd maturity · rd interest · monthly deposit
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