Higher Yield Scenario (+1.5%)
Total Invested₹3,00,000
Est. Interest₹59,664
Maturity Value₹3,59,664

Wealth Projection Curve

Visualization of systematic compounding over time

Annual Maturity Audit

Client-Side Logic Verified
YearTotal InvestedMaturity
Year 1₹60,000₹62,311
Year 2₹1,20,000₹1,29,099
Year 3₹1,80,000₹2,00,686
Year 4₹2,40,000₹2,77,418
Year 5₹3,00,000₹3,59,664

Capital Profile

Invested vs. Interest Gain Component

Growth

1.20x

Savings Factor83%
Interest Factor17%
RD Methodology

The RD Compounding

Each monthly installment earns interest for the remaining tenure, compounding quarterly—a disciplined path to building long-term capital.

M = P * (1+r/n)ⁿᵗ

M = Maturity of individual installment

P = Monthly Installment Amount

n = Compounding Frequency (Quarterly=4)

Institutional Insights

The TDS Threshold

Form 15G/H is required if total interest from all RDs/FDs in a bank exceeds ₹40k (₹50k for seniors).

Premature Closure

Banks usually charge a 1% penalty on the applicable rate for premature withdrawals.

Flexi-RD Advantage

Modern Flexi-RDs allow varying monthly amounts while maintaining fixed interest rates.

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