How it’s calculated
Each monthly deposit earns interest for the months it stays in the account, compounded every quarter, which is the method Indian banks use for RDs:
Maturity = Σ R × (1 + i ÷ 400)m ÷ 3 R = monthly deposit i = yearly interest rate (%) m = months each deposit stays invested (n, n − 1, … 1)
Example: ₹5,000 a month for 12 months at 7% matures to ₹62,311: ₹60,000 deposited plus ₹2,311 interest. Over 60 months it comes to ₹3,59,664.
TDS on interest is not included.