**Recurring Deposit(RD)** is a special type of deposit account which enables a depositor particularly in fixed income group to save by paying into the account an agreed fixed sum of money monthly over a stipulated period. The deposits in this type of account earn compound interest on quarterly basis. Longer the period for which monthly deposits are agreed to be made higher is the rate of interest subject to rules.

**Formula To Calculate RD Interest :**

R [ (1+i)n – 1]

M = ——————–

1- (1+i) -1/3

M = Maturity value

R = Monthly installment

n = Number of quarters

i = Rate of interest/400

**What is Recurring Deposit (RD) ?**

**Recurring Deposits** are a special kind of Term Deposits offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their **RD** [**Read More**]

The formula which is used in there is correct ?

Thanks for such a useful software.

please ex plane rd formula

Can you please explain how to derive this formula