How RDs Grow

RDs accumulate monthly contributions with compounding at the bank’s periodic rate.

Formula (End-of-Period Contributions)

FV = C × [((1 + r)^n − 1) / r], where C = monthly contribution, r = periodic rate, n = total periods.

For beginning-of-period contributions, multiply the bracket by (1 + r).

Example

C = 2,000 monthly, APR 7% compounded quarterly (approx monthly rate r = 0.07/12), term 36 months → compute FV with the formula above.

Try It

Plan deposits and compare terms: RD Calculator