Interest & Returns Calculators
Calculate annual percentage yield, daily compound interest and effective interest rate and other interest & returns calculations.
All Interest & Returns Calculators
Interest & Returns Guides
FD vs RD: Which Earns More Interest for the Same Money?
For the same total amount invested at the same rate over the same tenure, a Fixed Deposit (FD) earns noticeably more interest than a Recurring Deposit (RD), because an FD's full principal earns interest from day one, while an RD's money arrives gradually and each monthly installment earns interest only from the month it's deposited.
Read guideHow APY Reveals the True Return on a Deposit
APY (Annual Percentage Yield) accounts for how often interest compounds — a nominal 8% rate compounded monthly actually pays out 8.3% over a year, and compounding more often pushes that figure up even further.
Read guideHow Compounding Frequency Changes Your Interest Earned
The same principal, rate, and duration earn slightly more interest when compounded daily than when compounded monthly — because interest gets added back into the balance more often, starting to earn its own interest sooner.
Read guideHow Fixed Deposit (FD) Interest Is Actually Calculated
Indian bank FDs conventionally compound quarterly, not annually or as simple interest — the formula is maturityAmount = Principal × (1 + rate/4)^(tenure in quarters) — which earns more than plain simple interest at the same quoted annual rate, and the gap widens the longer the tenure runs.
Read guideHow Recurring Deposit (RD) Maturity Is Calculated
RD maturity is more complex than FD maturity because each monthly installment starts earning interest at a different point in time — the first deposit compounds for almost the whole tenure while the last deposit barely compounds at all — so the formula has to account for every installment's individual compounding period, not just one lump sum.
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