Formula & Mathematical Methodology: Quarterly Compounded FD & RD Maturity Formula
- P: Deposit principal
- r: Annual nominal interest rate (decimal)
- t: Tenure in years (Months ÷ 12)
Rounding: Rounded to 2 decimal places.
Compute bank FD (lump-sum) and RD (monthly installment) maturity values using quarterly IBA compounding conventions.
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Rounding: Rounded to 2 decimal places.
A saver places ₹2,00,000 in a 3-year cumulative bank FD at 7.25% compounded quarterly (12 quarters).
Because interest is credited every quarter and earns interest in subsequent quarters. A 7.25% rate compounded quarterly yields an effective annual return of 7.45%.
Compute bank FD (lump-sum) and RD (monthly installment) maturity values using quarterly IBA compounding conventions.
The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.
With the default values shown, Fixed Deposit (FD) Maturity Value is USD 248,109.40. The calculation follows Quarterly Compounded FD & RD Maturity Formula; the formula and variable definitions above show how the inputs combine.
One-input check: With the other defaults held constant, changing Deposit Scheme Type from Fixed Deposit (FD: One-Time Lump Sum) to Recurring Deposit (RD: Monthly Deposit) changes Fixed Deposit (FD) Maturity Value (USD 248,109.40) to Recurring Deposit (RD) Maturity Value (USD 8,058,961.65). This is a comparison inside the calculator's stated model, not a prediction.
Scope: India (IBA Quarterly Compounding Norm) & Global Check the assumptions and limitations against your situation before relying on the estimate.
More in Finance & Investing: PPF Calculator (Public Provident Fund), SIP Calculator (Systematic Investment Plan), Compound Interest Calculator.