RD Calculator

A recurring deposit (RD) is a term deposit where you commit to depositing a fixed amount every month for a predetermined tenure. At maturity you receive the total of all instalments plus compounded interest. RDs are widely used in India to build savings through monthly discipline — for school fees, festivals, travel, or a first home down-payment buffer.

Unlike a fixed deposit (FD), which needs a lump sum upfront, an RD spreads the investment over time. Banks and India Post both offer RD products; interest is typically compounded quarterly, which makes manual maturity calculation tedious without a calculator.

The calculator above uses the standard Indian method: each monthly instalment grows with quarterly compounding until the end of the tenure. Enable senior citizen for a typical +0.50% rate, and use optional tax slab chips for post-tax interest estimates. The growth chart and year-wise schedule show invested amount vs corpus over time.

For instalment deposited at the start of month m (of n total months), its contribution is:

A = P × (1 + R/400)^4t, where P is the monthly deposit, R is the annual rate in percent, and t is the remaining tenure in years for that instalment.

Worked example:₹5,000 per month at 8% p.a. for 3 years (36 instalments). Total deposited = ₹1,80,000. Estimated maturity ≈ ₹2,03,858 (interest ≈ ₹23,858). Adjust the inputs above to match your bank's quote.

RDs encourage a monthly saving habit with a fixed tenure and known rate, low minimums at many banks and post offices, and no market risk (subject to bank solvency / DICGC limits). Senior citizens often earn a small rate premium. Interest compounds — typically quarterly — so instalments deposited earlier earn more than those near maturity.

Bank RD:Offered by scheduled commercial banks and small finance banks. Rates are set per bank within RBI's Master Directions on deposits. Accounts are covered by DICGC insurance up to ₹5 lakh per depositor per bank (principal plus interest within that limit).

Post Office RD: A government small savings scheme administered through India Post. Interest rates are notified quarterly by the Ministry of Finance, Department of Economic Affairs — similar to other National Savings schemes. Rules on tenure, penalties and documentation are in the official scheme notification.

Premature closure is usually allowed but attracts a penalty — often a reduction in the interest rate or a charge specified in the product terms. Partial withdrawal may not be available on all RD variants; some banks require a minimum number of instalments before any exit is permitted.

Several banks offer loans or overdrafts against the accumulated balance in an active RD, subject to margin requirements and separate loan interest. This can provide liquidity without breaking the deposit, but terms differ by institution.

RD interest is fully taxable as "Income from other sources" at your income-tax slab rate. It does not qualify for the tax-free treatment that PPF enjoys.

Under Section 194A of the Income Tax Act, banks deduct TDS when aggregate interest on deposits (including RD and FD) with that bank exceeds ₹50,000 in a financial year (₹1,00,000 for resident senior citizens, from 1 April 2025). Submit Form 15G/15H if eligible to avoid TDS despite interest crossing the threshold.

RDs suit salaried individuals and small business owners who want a forced-saving habit without market risk. They work well for goals 1–5 years away where you prefer a known return over equity volatility.

If you already have a lump sum, compare an FD for potentially similar rates with simpler administration. For 15-year horizons and tax-free growth, see our PPF calculator. This is general information, not personal financial advice.