RD Calculator
Recurring deposit maturity value and interest with quarterly compounding.
Year-by-year growth table
| Year | Invested | Value | Interest |
|---|---|---|---|
| 1 | ₹60,000 | ₹62,311 | ₹2,311 |
| 2 | ₹1,20,000 | ₹1,29,099 | ₹9,099 |
| 3 | ₹1,80,000 | ₹2,00,686 | ₹20,686 |
| 4 | ₹2,40,000 | ₹2,77,418 | ₹37,418 |
| 5 | ₹3,00,000 | ₹3,59,664 | ₹59,664 |
A recurring deposit (RD) lets you save a fixed amount every month for a fixed tenure at a guaranteed interest rate, paying out one lump sum at maturity. This RD calculator shows exactly what those monthly deposits grow to — set the instalment, rate and tenure above to see your maturity value and total interest instantly.
Indian banks and the post office pay RD interest with quarterly compounding even though you deposit monthly, so each instalment earns interest for a different number of quarters. This calculator uses that same convention, which is why its maturity figure matches the number printed on your bank's RD advice slip.
How is RD maturity calculated?
The Indian bank convention treats an RD as monthly deposits earning quarterly-compounded interest: M = R × [(1 + i)ⁿ − 1] ÷ [1 − (1 + i)^(−1/3)], where R is the monthly instalment, i is the quarterly rate (annual rate ÷ 400) and n is the number of quarters in the tenure. The odd −1/3 exponent is what converts the quarterly rate into the monthly deposit rhythm.
For example, ₹5,000 a month at 7% for 5 years gives i = 7 ÷ 400 = 0.0175 and n = 20 quarters. (1.0175)²⁰ = 1.41478, so M = 5,000 × 0.41478 ÷ 0.0057662 = ₹3,59,664. You deposit ₹3,00,000 over the 60 months and earn ₹59,664 in interest. The year-wise table shows the balance passing ₹62,311 after year 1, ₹2,00,686 after year 3 and ₹3,59,664 at maturity — the curve steepens because early instalments have compounded the longest.
How to use this calculator
- Set the monthly deposit — the instalment your bank will auto-debit each month.
- Enter the interest rate quoted for that tenure; senior citizens should add the 0.25–0.50% extra card rate.
- Pick the tenure in years — most banks offer RDs from 6 months to 10 years.
- Read off invested amount, interest earned and maturity value, and check the doughnut to see how much of the corpus is your own money.
- Open the year-by-year table to compare the RD against an FD or SIP over the same period before you commit.
RD tips for Indian savers
RD interest is fully taxable at your slab rate, and banks deduct TDS at 10% once interest across your deposits with that bank crosses ₹40,000 in a financial year (₹50,000 for senior citizens). TDS is deducted every year as interest accrues, not only at maturity, so file Form 15G or 15H early in the year if your total income is below the taxable limit. Post-office RDs do not deduct TDS, but the interest is still taxable in your hands.
Choose between the three monthly-saving routes on purpose. An RD gives a guaranteed rate and suits goals within 1–5 years; an FD earns more on the same money because the whole amount is invested from day one, so use it when you already have the lump sum; an equity SIP has historically beaten both over 7+ year horizons but can fall in any given year. Also know the exit rules: RDs allow premature closure with interest paid at the rate applicable for the period served minus a 0.5–1% penalty, there are no partial withdrawals, and missing instalments attracts a small default fee — six consecutive misses can close the account.
Frequently asked questions
How do banks calculate RD interest in India?
Banks compound RD interest quarterly even though deposits arrive monthly, using M = R × [(1 + i)ⁿ − 1] ÷ [1 − (1 + i)^(−1/3)] with i as the quarterly rate. Each instalment therefore earns interest for a different span, and the earliest ones contribute the most. This calculator uses the same formula, so its result should match your bank's quote.
Is RD interest taxable, and when is TDS deducted?
Yes, RD interest is fully taxable at your income-tax slab rate under 'income from other sources'. Banks deduct 10% TDS once interest across all your deposits with that bank exceeds ₹40,000 in a financial year, or ₹50,000 if you are a senior citizen. Submitting Form 15G or 15H stops the deduction if your total income is below the taxable limit.
Which is better — RD or FD?
At the same rate an FD earns more, because the entire amount works from day one while RD instalments only start earning as they arrive. Choose an RD when you are saving out of monthly salary and an FD when the lump sum is already in hand. Many savers run an RD and roll the maturity proceeds into an FD.
Is an RD better than a SIP?
They answer different questions. An RD gives a guaranteed, DICGC-insured return that is ideal for goals one to five years away, while an equity SIP has historically delivered higher returns over 7+ years but can lose value in the short run. For a down payment two years out, choose the RD; for retirement, the SIP.
Can I close my RD before maturity?
Yes, premature closure is allowed, but the bank pays interest only at the rate applicable to the period the deposit actually ran, minus a penalty of roughly 0.5–1%. RDs do not allow partial withdrawals — it is all or nothing — though most banks offer a loan or overdraft of up to 90% of the balance instead.
What happens if I miss a monthly instalment?
Banks charge a small default fee, typically ₹1–2 per ₹100 of the instalment per month of delay, and the maturity value drops because that money compounds for less time. If you miss six consecutive instalments most banks close the account prematurely and pay out the balance at the applicable lower rate.
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Disclaimer: results are estimates based on the inputs and published rules/rates, for information only — not investment, tax or legal advice. Verify important decisions with a qualified professional. See our full disclaimer.