Question 1

What is a Recurring Deposit?

Accepted Answer

A Recurring Deposit (RD) is a type of term deposit where you invest a fixed amount every month for a predetermined tenure. It earns interest at a rate similar to fixed deposits.

Question 2

How is RD maturity calculated?

Accepted Answer

RD maturity is calculated using the compound interest formula applied to each monthly installment separately, with quarterly compounding typically used by banks.