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Recurring Deposit (RD) Calculator

Calculate the maturity value of your recurring deposit. Enter your monthly installment, interest rate, and tenure to see how your RD grows over time.

Results

Enter values and click Calculate to see results

How Recurring Deposits Work

A Recurring Deposit (RD) is a term deposit where you save a fixed amount every month for a predetermined period. Banks pay compound interest quarterly, making RDs a low-risk savings option.

Maturity = P × [((1 + R)^N - 1) / R] × (1 + R)

Where P is monthly deposit, R is monthly interest rate, and N is total months. Interest compounds quarterly in most Indian banks.

RD Interest Rates Reference

Bank TypeTypical RateSenior Citizen
Public Sector Banks5.5-6.5%+0.50%
Private Banks6.0-7.0%+0.50%
Small Finance Banks7.0-8.0%+0.75%
Post Office RD6.7%No extra

Rates vary by tenure and amount. Check current rates with your bank before investing.

RD vs Fixed Deposit

Recurring Deposit

Monthly deposits, lower initial commitment, good for regular savers

Fixed Deposit

Lump sum deposit, higher rates typically, better for one-time investments

Frequently Asked Questions

Is RD interest taxable?
Yes. RD interest is fully taxable as "Income from Other Sources." Banks deduct TDS if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
Can I withdraw RD before maturity?
Yes, but penalties apply. Most banks charge 1-2% lower interest for premature withdrawal. Some allow partial withdrawals after a lock-in period.
What happens if I miss a monthly payment?
Banks charge penalty for missed payments (₹10-100 depending on amount). After consecutive defaults, the RD may be closed prematurely.
Is RD safer than mutual funds?
RDs are safer — they offer guaranteed returns and are insured up to ₹5 lakh per depositor per bank. Mutual funds carry market risk but may give higher returns.
What is the minimum RD tenure?
Most banks offer RDs from 6 months to 10 years. Common tenures are 1, 2, 3, and 5 years. Longer tenures typically get better interest rates.

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