RD Calculator
Plan your recurring deposits and estimate the maturity amount with quarterly compounding used by Indian banks.
Total Deposited
₹3 L
Interest Earned
₹59,664
Maturity Amount
₹3.6 L
Investment Breakdown
RD Calculator – Recurring Deposit Returns Calculator
What is a Recurring Deposit?
A Recurring Deposit (RD) is a savings instrument offered by Indian banks where you deposit a fixed amount every month for a predetermined period. The bank pays interest on these deposits, compounded quarterly, and returns the maturity amount at the end of the tenure.
RDs are perfect for those who want to build a savings habit with small, regular contributions. They offer guaranteed returns like FDs but with the flexibility of monthly deposits instead of a lump sum.
How Does the RD Calculator Work?
The RD calculator treats each monthly installment as a mini fixed deposit that compounds for the remaining months. The first deposit earns interest for the full tenure, while the last deposit earns interest for just one month. The maturity amount is the sum of all installments plus their respective compounded interest.
For example, a ₹5,000/month RD at 7% for 5 years results in a total deposit of ₹3,00,000 and a maturity amount of approximately ₹3,60,060 — earning about ₹60,060 in interest.
RD vs SIP – Which Should You Choose?
RDs offer guaranteed returns (typically 6–7.5%) but limited growth potential. SIPs in equity mutual funds offer higher potential returns (10–14% historically) but come with market risk. Choose RDs for short-term goals (1–5 years) where capital protection matters. Choose SIPs for long-term wealth creation (5+ years).
For a balanced approach, use RDs for emergency fund building and short-term goals, and SIPs for long-term objectives like retirement or children's education.
Tax on Recurring Deposit Interest
RD interest is taxable as "Income from Other Sources" at your slab rate. Banks deduct TDS at 10% if total interest from all deposits exceeds ₹40,000 per financial year (₹50,000 for senior citizens). Submit Form 15G/15H if your income is below the taxable limit to avoid TDS.
Unlike tax-saving FDs, RDs do not offer any Section 80C deduction on the deposited amount.
Frequently Asked Questions
No, the monthly installment amount is fixed at the time of opening the RD. If you want to invest more, you'll need to open a separate RD. Some banks offer flexible RDs that allow varying deposits, but these are less common.
Missing an RD installment typically attracts a penalty (₹10–50 per missed installment depending on the bank). Regular missed payments may lead to the RD being closed prematurely with reduced interest. Set up auto-debit to avoid missing payments.
Most banks offer RD tenures from 6 months to 10 years. The minimum tenure is usually 6 months, and some banks allow tenures in multiples of 3 months after that.
Most banks allow RDs starting from ₹100–500 per month. There's no strict maximum, but some banks cap it at ₹10–15 lakh per month. Post office RDs require a minimum of ₹100/month. You can open multiple RDs at the same or different banks.
Yes, most banks allow opening RDs through net banking or mobile apps. The amount is auto-debited from your savings account each month. Post office RDs require a physical visit. Online RDs are more convenient and ensure you never miss a payment with auto-debit.
Premature closure of RD typically earns interest at the rate applicable for the actual tenure minus 0.5–1% penalty. If the actual tenure is less than the minimum RD period, savings account rate applies. Partial withdrawal is not allowed — you must close the entire RD.
RD offers guaranteed returns (6–7.5%) with zero risk, making it ideal for short-term goals (1–5 years). SIP in equity funds offers higher potential returns (10–14%) but with volatility, suited for 5+ year goals. For emergency fund building, RD is better. For wealth creation, SIP wins over long periods.
Yes, most banks offer 0.25–0.50% higher RD rates for senior citizens, similar to FD rates. Some banks have special senior citizen RD schemes. Post office RDs, however, offer the same rate to all depositors regardless of age.
In case of death, the RD amount is paid to the nominee or legal heir. The interest rate remains the same as the original RD — no penalty is applied. The nominee can choose to continue the RD or close it prematurely without penalty.