Calculate interest on recurring deposits.
Recurring deposit is a saving plan offered by banks and post offices in India, wherein you deposit a certain amount every month for a fixed tenure, usually six months and longer. Interests on recurring deposits are compounded quarterly and paid on maturity. Interest rates differ from bank to bank and may vary over time. See the latest interest rate offered by SBI, HDFC, ICICI and post office rd here.
Here is the formula for calculating recurring deposit given by Indian Banks' Association, which is a simplification of the formula for future value of annuity with monthly payments and quarterly compounding:-
A = P . ((1+i)n-1) / (1-(1+i)-1/3)
A = Maturity amount
P = Monthly installment
n = Number of quarters
i = r/4
r = Interest rate in percentage
To calculate maturity value and interest earned on recurring deposits with daily/ yearly installments, visit our website for calculating SIP returns.
Disclaimer:- The content of this website does not constitute financial advice and is solely meant for information purpose. The calculations are accurate as per the prescribed formula.