Recurring Deposit scheme is offered by almost all banks (RD schemes of SBI, PNB, ICICI Bank, HDFC Bank, IDBI Bank, Bank of India, Bank of Baroda,
Corporation Bank ) in one form or the other. Recurring Deposit is very popular among the salaried class, specially who can afford to save only few hindered or
say few thousand rupees per month. This scheme is a boon for people who do not have a large amount of savings and thus can not use the Fixed Deposit scheme of
the banks. Under this scheme, the customer deposits a minimum amount (normally fixed) every month, and bank pays the interest at the pre-determined rates
(which is usually the same as applicable to fixed deposits ). At the end of the period i.e. on maturity date, the customer is paid the maturity value i.e.
principle deposited and the interest payable.

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Recurring Deposit Interest Calculator

The above is a RD Interest Calculator which calculates the maturity value (i.e. principal amount + interest
earned ) of the deposits made under recurring deposit schemes of banks in India.

TDS On Interest Earned on Recurring Deposits / TDS Rules for RD Interest :

In terms of present guidelines, TDS is not deductibale on the interest paid by banks. However, the investor needs to include the interest accrued during the year in his / her income tax return.

How Recurring Deposit Interest is calculated ? / Formula for RD Interest calculations :

Formula used by Banks in India / Recurring Deposit Calculations / RD Calculations / Recurring Deposit Calculation Formula / RD Formula used by Indian Banks : The following formula is used by Banks in India for calculation of maturity value of the Recurring Deposit wherein the compounding is done on a quarterly basis:

Maturity Value of the Recurring Deposits - based on Quarterly
Compounding)

M =R [ (1+i)^{n} – 1]
--------------------
1- (1+i) ^{-1/3}

M
= Maturity value
R = Monthly installment
n = Number of quarters
i = Rate of interest/400

In EXCEL ( .xls file ) the Future Value (FV) is used for this purpose. However,
it has been noticed that it does not exactly match with the values as per the
bank maturity value charts of banks in India.