FD / RD Calculator
Calculate maturity values and interest returns for Fixed Deposits (FD) and Recurring Deposits (RD) with quarterly compounding. Free in your browser.
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How to use FD / RD Calculator
- 1
Choose between Fixed Deposit (FD) or Recurring Deposit (RD) tabs.
- 2
Enter your target principal, deposit amount, rate, tenure, and compound frequency.
- 3
Click Calculate Maturity to process compound math estimations.
- 4
Review principal details, interest payable, and standard banking rules.
Capabilities
- Dual compound estimation models (one-time vs recurring installments)
- Supports multiple compounding schedules (monthly, quarterly, annually)
- Standard Indian banking calculation standards for RD quarters
- Client-side in-browser calculation with zero network requests
How Fixed Deposit (FD) & Recurring Deposit (RD) Returns Work
Fixed Deposits (FD) and Recurring Deposits (RD) are traditional low-risk banking instruments offering defined capital protection and predictable interest returns. Knowing how commercial banks calculate interest using quarterly compounding allows you to forecast exact maturity sums.
Calculations follow standard Reserve Bank of India (RBI) conventions using quarterly compounding for cumulative term deposits. Actual bank outcomes can slightly differ depending on leap years or premature withdrawal penalty terms.
Deposit a single lump-sum upfront. Interest compounds at your chosen frequency (quarterly by default), yielding the final cumulative maturity amount at the end of the tenure.
Deposit a fixed amount every month. Each installment earns interest for the remaining quarters of the tenure, calculated using the standard Indian commercial banking formula.
Worked FD and RD Examples
Fixed Deposit Example: ₹2,00,000 for 5 years at 7.1% p.a. (quarterly compounding):
• Invested Principal: ₹2,00,000 | Estimated Interest: ₹84,394 | Maturity Value: ₹2,84,394
Recurring Deposit Example: ₹10,000/month for 24 months (2 years) at 6.8% p.a.:
• Total Invested: ₹2,40,000 | Estimated Interest: ₹17,472 | Maturity Value: ₹2,57,472
Compounding mechanics and deposit rules follow master directions issued by theReserve Bank of India (RBI) regarding Interest on Deposits.
For 15-year tax-free government deposits with EEE tax status, use PPF Calculator.
This tool operates in a sandbox directly inside your web browser. All parsing, processing, and downloads are rendered locally. Your file size, metadata, and contents never cross the network. It works completely offline.
Frequently Asked Questions
How is interest compounded on Indian bank Fixed Deposits (FD)?
Indian commercial banks typically compound interest on Fixed Deposits on a quarterly basis (every 3 months) in accordance with Reserve Bank of India (RBI) guidelines. The maturity formula is: A = P * (1 + r/4)^(4*t).
How is Recurring Deposit (RD) maturity calculated under quarterly compounding?
Indian banks compound monthly RD installments on a quarterly basis using the standard formula: Maturity = M * [((1 + i)^n - 1) / (1 - (1 + i)^(-1/3))], where i = annual rate / 4 (quarterly rate) and n = number of quarters.
What is the key difference between an FD and an RD?
A Fixed Deposit (FD) requires a single, one-time deposit of capital upfront for a specified tenure. A Recurring Deposit (RD) allows you to deposit a fixed sum of money each month, helping you build savings progressively.
Are bank FD and RD interest returns taxable in India?
Yes. Interest earned on bank FDs and RDs is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate. Banks also deduct TDS under Section 194A if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
Can I choose a different compounding frequency for my Fixed Deposit?
Yes. WebTorq supports monthly, quarterly, half-yearly, and annual compounding schedules, allowing you to match the exact terms offered by commercial banks or non-banking financial companies (NBFCs).