How the FD & RD Calculator Works
A fixed deposit grows one lump sum for the complete term. A recurring deposit grows a sequence of monthly installments, which means every installment can earn interest for a different length of time. The calculator uses the selected nominal rate and compounding frequency to derive a consistent monthly growth rate for the projection.
Fixed deposit
Maturity = Principal × (1 + r ÷ n)n × t
Here r is the annual nominal rate, n is the number of compound periods per year, and t is the term in years.
Recurring deposit
Maturity = Sum of every installment and its compound growth
Month-start installments receive one extra month of growth compared with otherwise identical month-end installments.
Fixed Deposit or Recurring Deposit?
An FD is useful for comparing the future value of money already available as a lump sum. An RD is useful for planning a disciplined monthly deposit from income. The maturity amounts are not directly comparable unless the total deposited, timing, rate, and term are also comparable.
Compounding Frequency and Effective Yield
The stated annual rate is not always the same as the effective annual yield. When interest is added more than once per year, later periods can earn interest on earlier interest. The result shows the effective yield implied by the selected frequency so rate comparisons are clearer.
Product Rules, Tax, and Early Withdrawal
This is a planning model, not a bank quote. Institutions may calculate incomplete periods using days or completed quarters, round at a different stage, change rates by deposit size or term, and apply penalties for missed RD installments or early closure. Results are before tax and do not include withholding, TDS, fees, or penalties.
Continue Your Savings and Interest Planning
Compare the deposit with a flexible lump sum and contribution model using the Compound Interest Calculator, work backward from a target with the Savings Goal Calculator, model market-linked monthly investing with the SIP Calculator, or compare non-compounding growth using the Simple Interest Calculator.