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How to Calculate FD and RD Maturity

6 min read · Updated September 26, 2026 · by Thomas M, Registered Investment Adviser (South Carolina)

How to Calculate FD and RD Maturity – feature image

Fixed and recurring deposits both use compound interest, usually quarterly in India. This guide shows both formulas with examples and how to compare deposits by effective yield.

FD maturity

Maturity = P × (1 + r ÷ 4)4t for quarterly compounding. ₹1 lakh at 7% for 5 years: ₹1,41,477.82, interest ₹41,477.82, effective yield 7.186%.

Why compounding matters

Yearly compounding gives ₹1,40,255.17 and simple interest ₹1,35,000.00 for the same deposit.

RD maturity

Each monthly deposit compounds for the months it stays. ₹5,000 a month for 60 months at 6.5% gives ₹3,54,954.10 on ₹3,00,000.00 deposited — interest ₹54,954.10.

Choosing between FD, RD and other options

An FD suits a lump sum you will not need until maturity; an RD suits a monthly saving habit with a known end date. Both are low-risk but their interest is fully taxable, so after tax and inflation the real return can be small. PPF offers tax-free interest with a long lock-in, and market-linked options such as SIPs aim for higher returns with risk. Match the instrument to the time horizon: money needed within a few years belongs in deposits; money for goals a decade away can consider growth assets with an adviser’s guidance. Also check that the amount you hold with any one bank stays within the deposit-insurance limit, and ladder FDs across different maturities so some money is always becoming available.

Taxes and comparison

Interest is taxable and banks may deduct TDS. Compare deposits by effective yield and post-tax return, not the headline rate. Try the FD and RD calculators.

Practice questions

Test yourself, then tap to check. Answers are calculated by the tools linked below.

  1. ₹5 lakh FD at 7.25% for 3 years, quarterly compounding. What is the maturity amount?
    Show answer

    Maturity amount: ₹6,20,273.50 · Interest earned: ₹1,20,273.50

  2. ₹3,000 a month RD for 36 months at 6.8%. What is the maturity amount?
    Show answer

    Maturity amount: ₹1,20,035.38 · Interest earned: ₹12,035.38

  3. ₹1 lakh a year for 15 years at 7.1% (lump sum before 5 April). What is the maturity value?
    Show answer

    Maturity value: ₹27,12,139.48 · Total interest earned (tax-free): ₹12,12,139.48

Frequently asked questions

How is FD interest calculated?

With compound interest, usually quarterly: P × (1 + r/4)^(4t).

How is RD maturity calculated?

Each monthly deposit compounds for the months remaining; the totals are added.

Is FD interest taxable?

Yes, at your slab rate.

What is effective yield?

The annual return after compounding, for comparing deposits.

Try it yourself

FD CalculatorCalculate fixed deposit maturity amount and interest for any rate, tenure and compounding.RD CalculatorCalculate recurring deposit maturity and interest for a monthly deposit, rate and tenure.PPF CalculatorEstimate your Public Provident Fund maturity value with yearly or monthly deposits, tax-free interest and a yearly table.

Keep learning

How Compound Interest Works7 min readHow to Calculate PPF Maturity6 min readHow to Calculate CAGR and ROI6 min read

Reviewed by Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Spot a mistake? Tell us. See our editorial policy. Finance content is educational and not financial advice; see the disclaimer.