How to calculate the Recurring Deposit maturity amount
The maturity amount for Recurring Deposits is the sum of the principle and interest generated over the investment period. Interest is compounded on a quarterly basis. According to HDFC Bank website, “Recurring Deposit is calculated using the compound interest formula. The savings have to be deposited into the account every month. The interest on your savings is compounded quarterly”.
ICICI Bank RD interest rates
Penalty charges for non-Deposit of monthly instalments
SBI customers must pay Rs 1.50 per Rs 100 each month for an account with a 5-year maturity period. Rs. 2.00 per Rs. 100/- every month for accounts having a maturity duration of more than 5 years. In case of SBI RD, if an RD customer misses six consecutive instalments, the account will be shut early and the remaining balance will be paid to the account holder. According to the ICICI Bank website, “Penalty is charged at monthly interest at the rate of Rs 12 per Rs 1000 for all delayed installments.”