Recurring Deposit (RD)

A Recurring Deposit (RD) is like a fixed deposit that you fund monthly. You commit to depositing a fixed amount every month for a set tenure (usually 6 months to 10 years), and the bank pays interest on the accumulating balance — typically compounded quarterly.

Because each monthly deposit is new, the calculation is different from an FD: every deposit accrues interest until maturity, and the running balance compounds quarterly. The result is guaranteed and safe.

RDs suit short-term goals and disciplined saving. For potentially higher (but riskier) long-term growth, a SIP in mutual funds is the common alternative. Compare with the RD Calculator.