RD Calculator

Calculate maturity amount and interest earned on your Recurring Deposit (RD) investment. Plan your savings with monthly contributions.

RD Investment Details

Monthly Deposit ₹5,000
₹
₹100 ₹25,000 ₹50,000 ₹75,000 ₹1,00,000
Monthly investment amount (₹100 to ₹1,00,000)
Interest Rate (Annual) 6.5%
%
3% 4.75% 6.5% 8.25% 10%
Annual interest rate offered by bank (3% to 10%)
RD Tenure 5 years
years
6 months 3 years 6 years 9 years 10 years
RD tenure in months (6 months to 10 years)
Bank/Institution Select Bank
Select bank to auto-fill current interest rate
Compounding Frequency Quarterly
How often interest is compounded
Maturity Amount
₹3,58,221
Total Investment
₹3,00,000
₹58,221
Interest Earned
7.1%
Effective Annual Return

Yearly Growth

Year Investment Interest Balance Growth

Compare with Other Investments

Investment Type Returns (5 Years) Risk Level Liquidity Tax Benefit
Recurring Deposit ₹58,221 Low Low No
Fixed Deposit ₹65,000* Low Medium No
Mutual Funds (Equity) ₹1,00,000* High High Yes
PPF ₹70,000* Low Low Yes
*Estimated returns for ₹5,000 monthly investment

RD Investment Tips

RD gives you guaranteed returns. For higher returns with some risk, consider SIP in mutual funds. Post Office RD offers slightly higher interest rates (6.7%) than most banks.

Key Features of Recurring Deposits

Guanteed Returns

RD offers fixed returns with capital protection. Interest rates are fixed at the time of account opening.

Disciplined Saving

Monthly deposits enforce financial discipline and help build regular saving habits.

Flexible Tenure

Choose tenure from 6 months to 10 years. Minimum deposit can be as low as ₹100 per month.

Loan Facility

Get loan against your RD balance (up to 90% of deposit amount) without breaking the deposit.

About RD Calculator

The RD Calculator helps you calculate the maturity amount and interest earned on your Recurring Deposit investment. Recurring Deposit is a term deposit offered by banks and post offices where you deposit a fixed amount every month for a predetermined period.

How RD Interest is Calculated

Maturity Value = P × [ (1 + r/n)^(nt) - 1 ] / (1 - (1 + r/n)^(-1/3))
Where:
P = Monthly Deposit Amount
r = Annual Interest Rate (in decimal)
n = Compounding Frequency per year
t = Tenure in years

Types of Recurring Deposits

Bank RD

  • Offered by commercial banks
  • Interest rates: 5.5% to 7.5%
  • Tenure: 6 months to 10 years
  • Online account management

Post Office RD

  • Offered by India Post
  • Interest rate: 6.7% (current)
  • Tenure: 5 years fixed
  • Tax benefits under Section 80C

Corporate RD

  • Offered by corporate houses
  • Higher interest rates
  • Higher risk than bank RD
  • Not covered by deposit insurance

Tax Implications on RD

TDS on RD Interest

Banks deduct 10% TDS if interest income exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

Taxation of RD Interest

RD interest is fully taxable as per your income tax slab rate. It's added to your total income.

Form 15G/15H

Submit Form 15G (below taxable income) or 15H (senior citizens) to avoid TDS deduction.

RD vs Other Investment Options

RD vs Fixed Deposit

  • RD: Monthly deposits, FD: Lump sum
  • RD better for regular savers
  • FD gives slightly higher interest
  • Both have similar safety

RD vs Mutual Fund SIP

  • RD: Fixed returns, MF: Market-linked
  • MF SIP has higher growth potential
  • RD has capital protection
  • MF SIP offers tax benefits
Note: The calculator provides estimates based on standard RD interest calculation formula. Actual returns may vary based on bank policies, compounding frequency, and changes in interest rates during the tenure. TDS and other charges are not included in this calculation. Post Office RD offers tax benefits under Section 80C up to ₹1.5 lakhs per year.

What is Recurring Deposit (RD)?

Recurring Deposit is a special term deposit offered by banks where you deposit a fixed amount every month for a predetermined period. The deposit earns interest at a fixed rate and matures on a specific date.

What is the minimum and maximum tenure for RD?

Most banks offer RD tenure from 6 months to 10 years. Post Office RD has a fixed 5-year tenure. The minimum deposit amount is usually ₹100 per month.

Can I withdraw RD before maturity?

Yes, but premature withdrawal attracts penalty (usually 1% less interest). Some banks allow partial withdrawals, while others require full closure.

Is RD interest taxable?

Yes, RD interest is fully taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 in a financial year.

Which is better: RD or FD?

RD is better for monthly savers, while FD is better for lump sum investment. FD usually offers slightly higher interest rates. Choose based on your saving pattern.

Related Financial Calculators

FD Calculator SIP Calculator PPF Calculator Compound Interest Calculator