RD Calculator
Calculate the maturity value of your recurring deposit. See how your fixed monthly deposits grow with quarterly compounding, and exactly how much interest you earn over the tenure.
A recurring deposit of ₹5,000 per month at 7% for 5 years grows to about ₹3.62 L at maturity — earning you roughly ₹61,746 in interest.
How the RD Calculator works
A recurring deposit turns a steady monthly habit into a guaranteed corpus. You commit a fixed amount each month for the tenure, and the bank pays a fixed rate compounded quarterly. Because each instalment stays invested for a different length of time, the earliest deposits earn the most interest. This calculator adds up the compounded value of every instalment for you.
How the interest builds
- Each monthly deposit earns interest for the months remaining until maturity.
- Interest is compounded quarterly, the standard Indian banking convention.
- The maturity value equals total deposits plus the accumulated interest.
- The rate is locked at booking, so the return is unaffected by market swings.
Tax and practical tips
RD interest is taxable at your slab rate, and banks deduct TDS at 10% once annual interest crosses ₹40,000 (₹50,000 for senior citizens). Missing an instalment usually attracts a small penalty, so align your RD date with your salary credit. An RD is best suited to short- and medium-term goals where capital safety matters more than chasing higher, riskier returns.
Frequently asked questions
What is a Recurring Deposit (RD)?
A recurring deposit lets you invest a fixed amount every month for a chosen tenure at a fixed interest rate, with the whole maturity amount paid out at the end. It suits salaried savers who want to build a corpus from regular monthly surpluses without needing a lump sum upfront.
How is RD interest calculated?
Banks compound RD interest quarterly. Each monthly deposit earns interest for the remaining months until maturity, so earlier instalments earn more than later ones. This calculator sums the compounded value of every instalment to arrive at the maturity amount and the total interest earned.
Is RD interest taxable?
Yes. RD interest is fully taxable at your income-tax slab rate as Income from Other Sources. Banks deduct TDS at 10% if your annual RD interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit to avoid TDS.
RD versus SIP — which is better?
An RD offers a guaranteed, fixed return and capital safety, ideal for short-term goals and conservative savers. A mutual fund SIP is market-linked, carries risk, but has historically delivered higher long-term returns. Many investors use an RD for near-term goals and a SIP for long-term wealth creation.
What happens if I miss an RD instalment?
Most banks levy a small penalty — often around ₹1–2 per ₹100 per month of the delayed instalment — and post offices may charge a default fee. Missing several instalments (typically four consecutive ones) can lead the bank to close the account prematurely and pay reduced interest. Set up a standing instruction from your savings account to avoid defaults.
Can I withdraw my RD before maturity?
Yes, but premature closure attracts a penalty of about 0.5–1% on the applicable interest rate, and you earn interest only for the period the RD actually ran. Some banks do not permit partial withdrawals, so you may have to close the whole account. Many banks instead offer a loan or overdraft of up to 80–90% against the RD balance if you need temporary funds.
Is RD money insured by DICGC?
Yes. Recurring deposits held with scheduled banks are covered by DICGC insurance up to ₹5,00,000 per depositor per bank, combining principal and interest across all your deposits in that bank. Post office RDs carry a sovereign guarantee and are not subject to this limit. For a larger corpus, spread deposits across banks.
Should senior citizens choose RD or a monthly income scheme?
An RD pays out only at maturity, so it suits those building a corpus rather than needing regular income. Senior citizens seeking monthly cash flow may prefer the Senior Citizen Savings Scheme or the Post Office Monthly Income Scheme, which pay periodic interest. Banks also give senior citizens 0.25–0.50% higher RD rates if you do opt for an RD.
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The results shown are estimates for illustration only, based on the inputs and assumptions you provide. Actual returns, interest, and tax depend on market conditions, prevailing rates, and applicable laws, which change over time. This is not investment, tax, or financial advice — please consult a qualified advisor before making decisions.