About Deposit Calculator — FD, RD and PPF
Fixed deposits, recurring deposits and yearly schemes like PPF are the guaranteed-return part of a portfolio. They will not make you wealthy, but they do not fall either, which is what makes them the right home for money you will need on a known date.
This calculator works out maturity value for all three, and — more usefully — shows the real return once inflation is deducted, which is often the number people have not considered.
How to use it
- Choose the deposit type: a one-off fixed deposit, a monthly recurring deposit, or a yearly-contribution scheme such as PPF.
- Enter the amount, the interest rate and the term. For FDs and RDs you can also set the compounding frequency your bank uses.
- Read the maturity value, the interest earned, and the real return after inflation — flagged in red if it is negative.
Frequently asked questions
- How is RD maturity different from FD maturity?
- An FD compounds one lump sum for the full term. An RD receives a new instalment every month, and each instalment only earns for its own remaining term — so the first one earns for the whole period and the last for barely a month.
- What does a negative real return mean?
- It means the deposit is growing more slowly than prices are rising. The balance goes up in rupees but buys less than the original sum did. A 6% deposit against 7% inflation loses purchasing power every year, despite never showing a loss.
- Does compounding frequency matter much?
- Somewhat. More frequent compounding always produces slightly more, because interest starts earning interest sooner. Most Indian banks compound quarterly. The difference over a five-year term is real but small compared with the effect of the rate itself.