How maturity value is calculated in recurring deposit?

# How maturity value is calculated in recurring deposit?

Unlike fixed deposits, where you have to deposit lump sum amounts, recurring deposits only require you to deposit fixed amounts on a monthly or quarterly basis. The interest for a recurring deposit is compounded quarterly. There are three variables used in the formula to calculate the maturity value of a recurring deposit: the interest rate ®, the tenure (t) and the compounding frequency (n) which is the number of quarters. If P is your principal amount and M is your maturity value, the formula to calculate M is -

M = P*(1+r/n)^(nt)

You can use an online recurring deposit maturity value calculator to save you the trouble of calculating the value manually.