FD & RD Calculator

What are FD & RD?

A Fixed Deposit (FD) lets you invest a lump sum for a fixed period at a fixed interest rate. A Recurring Deposit (RD) lets you invest a fixed amount every month for a fixed period.

Both are low-risk savings options offered by banks with guaranteed, compounding returns.

Disclaimer : Enter numbers in your local currency — the calculation works the same regardless of currency.

FD Formula

Maturity Value = P × (1 + r/n)^(n × t)

Where P = principal, r = annual interest rate (as a decimal), n = number of compounding periods per year, and t = term in years.

FD Example

If Principal = 1,00,000, Rate = 6.5%, Term = 5 years, compounded quarterly:

Maturity Value ≈ 1,38,043.99

That's about 38,043.99 in interest earned over 5 years on a one-time deposit.

RD Formula

Maturity Value ≈ (P × n) + [P × n(n+1)/2 × (r/1200)]

Where P = Monthly Investment, n = Number of Months, r = Annual Interest Rate

RD Example

If Monthly Deposit = 5,000, Rate = 6.5%, Tenure = 24 months:

Maturity Value ≈ 1,28,125.00

That's 1,20,000 invested plus about 8,125 in interest earned over 2 years of monthly deposits.

How FD & RD Connect to Your Other Calculators

Whether you have a lump sum or prefer saving monthly, it helps to see how these fixed-return options stack up against other calculators on this site.

  • CD Calculator — the US equivalent of an FD; compare rates directly if you're evaluating options across different banking systems.
  • Fixed Savings Calculator — the UK equivalent of an FD, useful for the same kind of side-by-side rate comparison.
  • SIP Calculator — like an RD, a SIP involves regular monthly contributions, but typically into market-linked instruments rather than a fixed-rate deposit — compare the two to weigh safety against growth potential.
  • PPF Calculator — another government-backed, low-risk option worth comparing against FD and RD rates for your safe-money allocation.
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Frequently Asked Questions

A Fixed Deposit is a savings option where you deposit a lump sum with a bank for a fixed term at a fixed interest rate. The funds earn compound interest and are generally locked in until maturity, though premature withdrawal is often allowed with a penalty.

A Recurring Deposit is a savings option where you deposit a fixed amount every month for a chosen tenure, and the bank pays interest on each installment for the time it remains deposited. It's designed for people who want to build savings through regular monthly contributions rather than a single lump sum.

FD interest is calculated using compound interest, based on the principal, annual rate, term, and compounding frequency such as quarterly or monthly. More frequent compounding results in a marginally higher maturity value for the same stated rate.

RD interest is calculated on each monthly installment separately, since each deposit earns interest only for the months it remains in the account. This means the first installment earns interest for the full tenure while the last installment earns interest for just one period, and the total is summed for the final maturity value.

Neither is universally better; an FD suits people with a lump sum to invest at once, while an RD suits people who want to save a fixed amount every month. Both typically offer similar interest rates at a given bank, so the right choice depends on how you plan to save rather than which option earns more.

Most banks allow premature withdrawal of both FDs and RDs, but usually at a reduced interest rate or with a penalty, and terms vary by bank. It's worth checking the specific premature withdrawal policy before opening either account if early access to funds is a possibility.