IBA Standard Quarterly RD Compounding Calibrated for Bank & Post Office RDs 100% Client-Side Privacy

Recurring Deposit (RD) Calculator

Build guaranteed short-to-medium term savings with monthly installments compounded quarterly under Indian Banking Association (IBA) standards.

₹
%
Yrs
Guaranteed RD Maturity Value
₹7.19 L
₹7,19,328 • Total Installments: 60 Months
Total Deposited
₹6.00 L
₹6,00,000
Total Interest Earned
₹1.19 L
₹1,19,328
Return Gain %
+19.89%
Over Total Principal
Deposits vs Interest Split
RD Accumulation Curve

Year-Wise RD Accumulation Schedule

Year Cumulative Deposited Interest Earned Till Date Year-End Maturity Value

How RD Quarterly Compounding Works (Worked Example)

In an Indian Recurring Deposit, you deposit P every month for N = 12 × t months, while the bank compounds interest quarterly at r / 4. Each monthly deposit k (from 1 to N) remains invested for k months (or k / 3 quarters):

A = ∑k=1..N P × (1 + r / 4)(4 × k / 12)

Worked Example

Deposit ₹10,000/month at 7.0% p.a. for 5 years (60 months): your 1st installment compounds for all 20 quarters (growing to ₹14,148), while your 60th installment compounds for 1 month (growing to ₹10,058). Summing all 60 installments gives ₹7,19,328.

When to Choose RD vs Debt Fund SIP

  • Zero Market Volatility: For non-negotiable short-term goals (like paying school fees or buying gold in 24 months), an RD locks in a known contractual interest rate from Day 1.
  • Watch Out for Late Installment Penalties: Banks and Post Offices charge ₹1 to ₹1.50 per ₹100 per month for missed RD installments. If your monthly cashflow is irregular, a flexible Liquid/Money Market Fund SIP avoids penalty charges.

RD Frequently Asked Questions

Bank RDs do not qualify for Section 80C deductions. Only a 5-year Tax-Saver Fixed Deposit or a 5-year Post Office Time Deposit qualifies under Section 80C.

Post Office RD has a fixed 5-year tenure (extendable by another 5 years) and carries a sovereign Government of India guarantee, whereas Bank RDs allow flexible tenures from 6 months to 10 years.