RD Calculator (Recurring Deposit)
Saving a fixed amount every month in an RD? See what it adds up to at maturity. Uses quarterly compounding, which is how most Indian banks and the Post Office calculate RD returns.
This calculator is designed for India. Rates and rules are based on Indian regulations. Outside India? Try our Recurring Savings Calculator →
How to use
- Enter how much you're depositing each month.
- Enter the interest rate your bank is offering. It's usually somewhere between 5% and 7% - check with them if you're not sure.
- Enter the tenure in months. Most RDs run for 12, 24, or 36 months.
- Hit Calculate to see your maturity amount and how much interest you'll earn on top.
Related tools:
A Recurring Deposit (RD) is a savings scheme where you deposit a fixed amount every month for a predetermined tenure. At maturity, you receive the total deposited amount plus the interest earned. RDs are ideal for salaried individuals who want to save regularly without needing a large lump sum. Banks compound RD interest quarterly in India.
The RD maturity formula is: M = R × [(1 + i)^n − 1] / (1 − (1 + i)^(−1/3)), where R is the monthly deposit, i is the quarterly interest rate (annual rate / 4 / 100), and n is the number of quarters. Post Office RDs offer sovereign guarantee and competitive rates, making them popular for conservative investors.
Frequently Asked Questions
What is the minimum deposit for an RD?
Most banks allow RDs starting from ₹100 per month. Post Office RD minimum is ₹100/month. There is no upper limit.
Is RD interest taxable?
Yes. RD interest is fully taxable and added to your income. TDS at 10% is deducted if total interest from a bank exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H if your income is below the taxable limit.
Can I break an RD before maturity?
Yes, premature closure is allowed with a penalty of typically 0.5%–1% on the applicable rate. The interest earned till the date of closure is paid at the reduced rate.
RD vs SIP, which is better?
RD offers guaranteed returns (currently 6–7.5%) with no market risk, suitable for conservative investors. SIP in mutual funds offers potentially higher returns (10–15% historically) but with market risk. For short-term goals (1–3 years), RD is safer. For long-term wealth creation (5+ years), SIP in equity funds generally outperforms.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.