Recurring Deposit Calculator

Calculate the maturity value of your Recurring Deposit (RD).

RD Calculator

Recurring Deposit
%
Years

Breakdown

About Recurring Deposits

Recurring Deposit is a systematic savings scheme offered by banks where you deposit a fixed amount every month for a predetermined tenure, earning guaranteed interest. It's perfect for building a corpus for specific goals.

Best For:

  • Disciplined monthly savers with fixed income
  • Risk-averse investors seeking guaranteed returns
  • Short to medium-term goals (1-10 years)
  • Building emergency or vacation funds

How RD Interest Works

Quarterly Compounding:

Each monthly deposit earns interest from the time it's deposited until maturity. Interest is compounded quarterly (every 3 months).

Example: ₹5,000/month for 5 years @ 6.5%

• Total Deposits: ₹3,00,000

• Interest Earned: ~₹52,000

• Maturity Value: ~₹3,52,000

First installment earns interest for full tenure while last installment earns for just 1 month.

Key Insights

🎯 RD vs FD Returns

For same rate and tenure, FD gives slightly better returns as entire amount earns interest from day 1. RD is better for monthly cash flows.

💰 Senior Citizen Advantage

Most banks offer 0.5% extra interest to senior citizens (60+), making RD an attractive safe option for retirees.

🔄 Auto-Debit Recommended

Set up auto-debit from savings account to avoid missing installments and late payment penalties.

Did You Know?

🏦 Post Office RD

Post Office offers RD with competitive rates and government backing. Minimum ₹100/month, maximum no limit. More convenient for 2-month flexibility.

📊 Laddering Strategy

Start multiple RDs with different maturity dates to ensure regular fund availability and capture rising interest rates.

⏰ Tax Saver RD

5-year RDs qualify for Section 80C deduction (up to ₹1.5 lakh), reducing taxable income. Lock-in period applies!

Frequently Asked Questions About Recurring Deposits

Recurring Deposit (RD) is a savings scheme where you deposit a fixed amount every month for a predetermined period. It combines the discipline of regular savings with guaranteed returns, making it ideal for building a corpus for specific goals.
RD vs FD: RD requires monthly deposits while FD is a one-time lumpsum. RD vs SIP: RD offers fixed guaranteed returns while SIP returns depend on market performance. RD is safer but typically offers 5.5-7.5% returns, while SIPs can potentially deliver 12-15% over long term.
No, RD requires regular monthly deposits. However, if you miss an installment, most banks allow a grace period of 1-2 months with a penalty (usually ₹1-2 per ₹100). Missing 2-3 consecutive installments may lead to account closure.
Missing payments incurs penalties and you lose interest for that month. If regularized within grace period, account continues. Post Office RDs allow deposit of 2 months together. Frequent defaults may result in account closure, and you'll receive invested amount with reduced interest.
No, you cannot increase the monthly deposit amount in an existing RD. However, you can start another RD account with a higher amount. Some banks offer 'Flexi RD' schemes with flexible deposit amounts, but these are less common.
Yes, RD interest is fully taxable as per your income tax slab. Banks deduct TDS @ 10% if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H if income is below taxable limit. Interest must be declared in ITR.
Yes, premature withdrawal is allowed but comes with penalties - typically 1-2% lower interest rate than contracted. Some banks charge additional penalty fees. Post Office RD can be closed after 3 years without penalty. Consider the reduced returns before premature closure.
RD rates vary: Public sector banks (5.5-6.7%), Private banks (6-7.5%), Small Finance Banks (up to 8-9%). Post Office offers competitive rates (~6.7-7%) with government backing. Senior citizens get 0.5% extra. Check current rates as they change quarterly based on RBI policies.