RD Calculator
Calculate recurring deposit maturity value, total deposits and interest earned using the standard quarterly-compounding RD formula used by Indian banks.
About the RD Calculator
A recurring deposit (RD) lets you save a fixed amount every month and earn FD-like interest on it. This RD calculator shows the maturity value, total amount deposited and interest earned for any monthly instalment, interest rate and tenure in months, formatted in Indian rupees.
It uses the standard bank method: each monthly deposit is compounded quarterly for the time it stays invested, so the first instalment earns the most and the last the least. Depositing ₹5,000 a month at 6.8% for 5 years grows ₹3,00,000 of deposits into roughly ₹3,58,000.
Indian bank RD rates generally track FD rates for the same tenure — around 6% to 7.5% — and the Post Office 5-year RD is a popular government-backed alternative whose rate is revised quarterly. RDs suit salaried savers building an emergency fund or saving for a fixed goal without market risk; compare with a SIP if you can accept equity volatility for higher potential returns.
How to Use the RD Calculator
- 1Enter the amount you will deposit every month.
- 2Enter the annual interest rate offered on the RD.
- 3Enter the tenure in months (banks allow 6 to 120 months).
- 4Read the maturity value, total deposited and interest earned.
Frequently Asked Questions
How is RD maturity calculated?
Banks compound RD interest quarterly. Each monthly instalment earns interest for the months it remains invested: M = Σ P × (1 + r/4)^(4n/12), where P is the instalment, r the annual rate and n the months remaining for that deposit. This calculator sums that series for every instalment, which is why its result matches bank RD charts.
Is RD interest taxable in India?
Yes. Like FD interest, RD interest is added to your income and taxed at your slab rate. Banks deduct TDS at 10% once your total interest across the bank crosses the annual threshold. There is no tax deduction for investing in a regular RD — if you want Section 80C benefits with a similar discipline, consider PPF or a 5-year tax-saver FD.
What is the difference between an RD and a SIP?
An RD pays a fixed, guaranteed interest rate and your maturity value is known in advance; a SIP invests in mutual funds where returns are market-linked and can be higher or lower. RDs suit short-term goals and zero-risk savers; SIPs have historically rewarded horizons of 5+ years. Many savers run both — an RD for safety, a SIP for growth.
What happens if I miss an RD instalment?
Most banks charge a small penalty for delayed instalments (the Post Office RD charges ₹1 per ₹100 per month of default) and may close the account if several instalments are missed consecutively. The maturity amount also drops because the delayed money compounds for less time. Setting up a standing instruction from your savings account avoids misses entirely.
Can I withdraw my RD before maturity?
Yes, banks allow premature closure, but interest is recalculated at the rate applicable to the completed period, typically minus a 0.5–1% penalty, so you earn less than the booked rate. The Post Office RD permits closure after three years at savings-account interest. Some banks also offer loans of up to 90% against the RD balance instead.