Question 1

What is a Recurring Deposit (RD)?

Accepted Answer

A Recurring Deposit is a term deposit offered by Indian banks that allows people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to Fixed Deposits.

Question 2

How is RD interest calculated?

Accepted Answer

In India, the interest on an RD is usually compounded quarterly. This means the interest is added to your principal every quarter, and subsequent interest is calculated on the new amount.

Question 3

Can I withdraw my RD before maturity?

Accepted Answer

Yes, premature withdrawal of RD is allowed, but banks usually charge a penalty (typically 0.5% to 1%) on the applicable interest rate for the period the deposit was held.

Recurring Deposit Calculator

Recurring Deposit Details

Frequently Asked Questions