Recurring Deposit Calculator
Calculate the maturity value of your recurring deposit or regular savings plan. Estimate total interest earned and your final balance with our free RD calculator.
Estimate Your Savings Growth
Enter your monthly deposit amount, expected interest rate, and time period to see how compound interest can grow your regular savings over time.
Your RD Maturity Estimate
Based on your entered figures
How Recurring Deposits Work
Understanding the mechanics of an RD helps you make informed decisions about your regular savings strategy and long-term financial goals.
Set a Fixed Monthly Contribution
You agree to deposit a specific, unchanging amount of money into the account every month for the duration of the term.
Earn Compound Interest
Each monthly deposit begins earning interest immediately. Because interest is calculated on the growing balance, your money generates its own earnings over time.
Commit to a Time Period
RDs typically have fixed tenures ranging from 6 months to 10 years. Longer tenures generally offer higher interest rates and greater compounding benefits.
Receive the Maturity Value
At the end of the term, the account matures. You receive a lump sum comprising all your monthly deposits plus all the accumulated compound interest.
Regular Savings Growth Examples
See how different monthly contributions grow over a 5-year period at a fixed 4.5% annual interest rate.
| Monthly Deposit | Total Invested (5 Years) | Interest Earned | Maturity Value |
|---|---|---|---|
| £100 | £6,000 | £751 | £6,751 |
| £200 | £12,000 | £1,502 | £13,502 |
| £300 | £18,000 | £2,253 | £20,253 |
| £500 | £30,000 | £3,755 | £33,755 |
| £750 | £45,000 | £5,632 | £50,632 |
| £1,000 | £60,000 | £7,510 | £67,510 |
Recurring Deposit FAQ
Answers to the most frequently asked questions about regular savings plans, compound interest, and maturity calculations.
A Recurring Deposit (RD) is a savings account where you commit to depositing a fixed amount of money every month for a predetermined period. In return, the bank pays you a fixed interest rate, compounding your savings over time.
RD interest is typically calculated using the compound interest formula for regular monthly contributions. Each monthly deposit earns interest for the remaining duration of the term, meaning earlier deposits earn more interest than later ones.
Most banks allow premature withdrawal from a recurring deposit, but it usually incurs a penalty. This often involves a reduction in the applicable interest rate (e.g., 0.5% to 1% lower than the contracted rate) or a flat fee.
In the UK, interest earned on savings is subject to Income Tax. However, you can earn up to £1,000 in savings interest tax-free each year if you are a basic rate taxpayer, or £500 if you are a higher rate taxpayer, thanks to the Personal Savings Allowance.