RD Account Calculator

Paid at the start of every month of the term.
The rate your bank or post office is currently paying on this term. Scheme rates are revised quarterly.
Added to the term in years, for a 30-month or 18-month deposit.
Used only when solving for the instalment.
Recurring deposit interest is taxable as income; banks also deduct tax at source above a threshold.
Maturity value
356,829.14
Recurring Deposit (RD) Calculator
Total deposited
300,000.00
Interest earned
56,829.14
Number of instalments
60
Rate per compounding period
1.675000 %
Effective annual yield
6.8702 %
Interest as a share of deposits
18.9430 %
Interest after tax
56,829.14
Maturity value after tax
356,829.14
Worked out from India Post, National Savings Recurring Deposit Account - maturity formula M = R[(1+i)^n - 1]/(1 - (1+i)^(-1/3)) and 1 other source.
Scheme and bank recurring-deposit rates are revised periodically; the rate used here is the one you entered.
A missed or late instalment attracts a default fee and changes the maturity value. This projection assumes every instalment is paid on time.
Deposit interest is taxable and banks may deduct tax at source. Confirm the rate, compounding basis and tax treatment with your own bank or post office before relying on a figure.

How this is worked out

5 steps
  1. Rate per compounding period i = 6.7% / 4 = 1.675%.
  2. 60 monthly instalments: the first compounds for 60 months, the last for one month.
  3. Future value of one unit of instalment = 71.36582884.
  4. Maturity value = 5000 * 71.365829 = 356829.14.
  5. Deposits total 300000, so the interest is 56829.14.
Balance at each anniversarytable
yeardepositedbalance
160,00062,210.16
2120,000128,694.3
3180,000199,746.04
4240,000275,679.2
5300,000356,829.14

Results are general information, not financial, tax, legal, medical or engineering advice.