π Recurring Deposit
RD Calculator
Calculate Maturity, Interest & Real Returns on Recurring Deposits
Compute your RD maturity value for any monthly instalment, tenure, and compounding frequency. Compare banks, model the impact of tax and inflation, and see exactly how your disciplined savings grow month by month.
Maturity AmountMonthly InstalmentQuarterly Compounding
Tax on RDReal ReturnCompare BanksSenior Citizen Rate
QUICK SCENARIOS:
Recurring Deposit Calculator
Monthly Instalment
Fixed amount deposited each month
βΉ
βΉ100βΉ1L
Annual Interest Rate
Bank's RD rate (quarterly compounding)
%
4%12%
Tenure
Duration of the RD
yr
3 mo10 yr
Tax & Inflation
Tax Slab
For TDS & after-tax return
%
0%42%
Inflation Rate
For real return calculation
%
0%15%
Monthly Instalment
Same for all banks
βΉ
βΉ100βΉ1L
Tenure
Same for all banks
yr
3 mo10 yr
Bank RD Rates
π SBI
%
π HDFC Bank
%
π ICICI Bank
%
π Axis Bank
%
π§ Post Office
%
π Small Finance
%
Target Maturity Amount
How much you want at the end
βΉ
βΉ10KβΉ10L
Annual Interest Rate
%
4%12%
Tenure
yr
3 mo10 yr
Goal Inflation Adjustment
Goal Inflation Rate
Expected rise in cost of your goal
%
0%15%
RD Summary
π
Maturity Amount
β
β
Total Interest
β
β
Total Invested
β
β
Invested vs Interest Earned
β
gain
Total Invested
βInterest Earned
βTax Deducted
βπ Real Return (Inflation-Adjusted)
Absolute Returnβ
Tax Paidβ
Inflation Erosionβ
Real Net Gainβ
Maturity Amount
β
β
Total Interest
β
β
Post-Tax Maturity
β
β
Absolute Return
β
on invested amount
Month-wise RD Growth
Invested
Interest
π Year-wise RD Breakdown
How is RD Interest Calculated?
A Recurring Deposit (RD) works by depositing a fixed amount every month. Each instalment earns interest from the date it is deposited until maturity. Indian banks use quarterly compounding for RDs. The total maturity amount is the sum of all monthly instalments plus the interest compounded on each one for its respective remaining tenure.
Maturity = β [P Γ (1 + r/4)(4 Γ n/12)]Β for each monthly instalment
Where: P = Monthly instalment Β Β r = Annual rate / 100
n = Remaining months for that instalment
Total Invested = Monthly Instalment Γ Tenure in Months
Interest Earned = Maturity β Total Invested
Real Return = Post-Tax Maturity β Inflation-adjusted Total Invested
Where: P = Monthly instalment Β Β r = Annual rate / 100
n = Remaining months for that instalment
Total Invested = Monthly Instalment Γ Tenure in Months
Interest Earned = Maturity β Total Invested
Real Return = Post-Tax Maturity β Inflation-adjusted Total Invested
RD Maturity for βΉ5,000/month at Various Rates & Tenures
| Rate | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| 6.5% | βΉ61,776 | βΉ1,98,623 | βΉ3,52,835 | βΉ8,37,204 |
| 7.0% | βΉ62,011 | βΉ2,01,272 | βΉ3,59,576 | βΉ8,65,904 |
| 7.5% | βΉ62,248 | βΉ2,03,952 | βΉ3,66,447 | βΉ8,95,451 |
| 8.0% | βΉ62,487 | βΉ2,06,664 | βΉ3,73,451 | βΉ9,25,880 |
| 8.5% | βΉ62,728 | βΉ2,09,407 | βΉ3,80,589 | βΉ9,57,221 |
RD vs SIP vs FD β Which is Better?
| Feature | RD | SIP (Mutual Fund) | FD |
|---|---|---|---|
| Investment Style | Fixed monthly | Fixed monthly | One-time lump sum |
| Returns | 6.5%β8.5% (fixed) | 10%β15% (market-linked) | 6.5%β8.5% (fixed) |
| Risk | No risk | Market risk | No risk |
| Liquidity | Partial (penalty on break) | High (ELSS: 3yr lock-in) | Low (penalty on premature) |
| Tax | Slab rate (TDS applies) | LTCG 12.5% above βΉ1.25L | Slab rate (TDS applies) |
| Best for | Capital preservation + habit | Long-term wealth creation | Lump sum parking |
Frequently Asked Questions
How is RD interest taxed in India?βΌ
RD interest is fully taxable as "Income from Other Sources" at your applicable income tax slab rate. Banks deduct TDS at 10% when total interest across all deposits exceeds βΉ40,000 in a financial year (βΉ50,000 for senior citizens). Unlike FDs, you cannot submit Form 15G/15H to avoid TDS on RDs at most banks. Even if TDS is not deducted, you must declare the accrued interest in your ITR every year β not just at maturity. Post Office RDs are exempt from TDS deductions.
What happens if I miss an RD instalment?βΌ
Banks levy a penalty for missed RD instalments β typically βΉ1β2 per βΉ100 per month of delay. SBI charges βΉ1.50 per βΉ100 for tenures up to 5 years. If you miss more than 3β4 consecutive instalments, most banks cancel the RD and pay interest only for the period actually deposited (at a lower premature withdrawal rate). Post Office RDs allow a 2-month grace period, and the RD can be revived by paying arrears with penalty.
Is RD better than SIP for a first-time investor?βΌ
For a first-time investor with a short time horizon (1β3 years) or low risk tolerance, RD is safer because returns are guaranteed. For goals beyond 5 years, SIP in diversified equity mutual funds historically outperforms RD significantly (10β15% vs 6.5β8%). The ideal approach: use RD for short-term goals (emergency fund, down payment in 2 years) and SIP for long-term goals (retirement, child's education in 10+ years). Starting a SIP alongside an RD trains the habit of monthly investing.
Can I get a loan against my RD?βΌ
Yes. Banks offer loans or overdraft facilities against RDs, typically up to 90β95% of the deposited amount (not the full maturity value). The interest rate on the loan is usually 1β2% above the RD rate. This is useful when you need liquidity temporarily without breaking the RD and losing accumulated interest. Post Office RDs allow loans after completing 12 instalments β up to 50% of deposits. Note that the loan amount is based on the balance deposited, not the future maturity value.
What is the Post Office RD scheme and how does it compare?βΌ
The Post Office Recurring Deposit (PORD) currently offers 6.7% p.a. with quarterly compounding β backed by the Government of India (sovereign guarantee). Minimum deposit is βΉ100/month, no maximum. Key advantages: no TDS deduction, sovereign guarantee (vs DICGC βΉ5L cap for bank RDs), loans available after 12 months, and can be extended indefinitely in 5-year blocks. Disadvantage: slightly lower rate than some private banks or small finance banks. Best for risk-averse investors wanting government-backed safety with no TDS hassle.
π Recurring Deposit
RD Calculator
Calculate Maturity, Interest & Real Returns on Recurring Deposits
Compute your RD maturity value for any monthly instalment, tenure, and compounding frequency. Compare banks, model the impact of tax and inflation, and see exactly how your disciplined savings grow month by month.
Maturity AmountMonthly InstalmentQuarterly Compounding
Tax on RDReal ReturnCompare BanksSenior Citizen Rate
QUICK SCENARIOS:
Recurring Deposit Calculator
Monthly Instalment
Fixed amount deposited each month
βΉ
βΉ100βΉ1L
Annual Interest Rate
Bank's RD rate (quarterly compounding)
%
4%12%
Tenure
Duration of the RD
yr
3 mo10 yr
Tax & Inflation
Tax Slab
For TDS & after-tax return
%
0%42%
Inflation Rate
For real return calculation
%
0%15%
Monthly Instalment
Same for all banks
βΉ
βΉ100βΉ1L
Tenure
Same for all banks
yr
3 mo10 yr
Bank RD Rates
π SBI
%
π HDFC Bank
%
π ICICI Bank
%
π Axis Bank
%
π§ Post Office
%
π Small Finance
%
Target Maturity Amount
How much you want at the end
βΉ
βΉ10KβΉ10L
Annual Interest Rate
%
4%12%
Tenure
yr
3 mo10 yr
Goal Inflation Adjustment
Goal Inflation Rate
Expected rise in cost of your goal
%
0%15%
RD Summary
π
Maturity Amount
β
β
Total Interest
β
β
Total Invested
β
β
Invested vs Interest Earned
β
gain
Total Invested
βInterest Earned
βTax Deducted
βπ Real Return (Inflation-Adjusted)
Absolute Returnβ
Tax Paidβ
Inflation Erosionβ
Real Net Gainβ
Maturity Amount
β
β
Total Interest
β
β
Post-Tax Maturity
β
β
Absolute Return
β
on invested amount
Month-wise RD Growth
Invested
Interest
π Year-wise RD Breakdown
How is RD Interest Calculated?
A Recurring Deposit (RD) works by depositing a fixed amount every month. Each instalment earns interest from the date it is deposited until maturity. Indian banks use quarterly compounding for RDs. The total maturity amount is the sum of all monthly instalments plus the interest compounded on each one for its respective remaining tenure.
Maturity = β [P Γ (1 + r/4)(4 Γ n/12)] for each monthly instalment
Where: P = Monthly instalment r = Annual rate / 100
n = Remaining months for that instalment
Total Invested = Monthly Instalment Γ Tenure in Months
Interest Earned = Maturity β Total Invested
Real Return = Post-Tax Maturity β Inflation-adjusted Total Invested
Where: P = Monthly instalment r = Annual rate / 100
n = Remaining months for that instalment
Total Invested = Monthly Instalment Γ Tenure in Months
Interest Earned = Maturity β Total Invested
Real Return = Post-Tax Maturity β Inflation-adjusted Total Invested
RD Maturity for βΉ5,000/month at Various Rates & Tenures
| Rate | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| 6.5% | βΉ61,776 | βΉ1,98,623 | βΉ3,52,835 | βΉ8,37,204 |
| 7.0% | βΉ62,011 | βΉ2,01,272 | βΉ3,59,576 | βΉ8,65,904 |
| 7.5% | βΉ62,248 | βΉ2,03,952 | βΉ3,66,447 | βΉ8,95,451 |
| 8.0% | βΉ62,487 | βΉ2,06,664 | βΉ3,73,451 | βΉ9,25,880 |
| 8.5% | βΉ62,728 | βΉ2,09,407 | βΉ3,80,589 | βΉ9,57,221 |
RD vs SIP vs FD β Which is Better?
| Feature | RD | SIP (Mutual Fund) | FD |
|---|---|---|---|
| Investment Style | Fixed monthly | Fixed monthly | One-time lump sum |
| Returns | 6.5%β8.5% (fixed) | 10%β15% (market-linked) | 6.5%β8.5% (fixed) |
| Risk | No risk | Market risk | No risk |
| Liquidity | Partial (penalty on break) | High (ELSS: 3yr lock-in) | Low (penalty on premature) |
| Tax | Slab rate (TDS applies) | LTCG 12.5% above βΉ1.25L | Slab rate (TDS applies) |
| Best for | Capital preservation + habit | Long-term wealth creation | Lump sum parking |
Frequently Asked Questions
How is RD interest taxed in India?βΌ
RD interest is fully taxable as "Income from Other Sources" at your applicable income tax slab rate. Banks deduct TDS at 10% when total interest across all deposits exceeds βΉ40,000 in a financial year (βΉ50,000 for senior citizens). Unlike FDs, you cannot submit Form 15G/15H to avoid TDS on RDs at most banks. Even if TDS is not deducted, you must declare the accrued interest in your ITR every year β not just at maturity. Post Office RDs are exempt from TDS deductions.
What happens if I miss an RD instalment?βΌ
Banks levy a penalty for missed RD instalments β typically βΉ1β2 per βΉ100 per month of delay. SBI charges βΉ1.50 per βΉ100 for tenures up to 5 years. If you miss more than 3β4 consecutive instalments, most banks cancel the RD and pay interest only for the period actually deposited (at a lower premature withdrawal rate). Post Office RDs allow a 2-month grace period, and the RD can be revived by paying arrears with penalty.
Is RD better than SIP for a first-time investor?βΌ
For a first-time investor with a short time horizon (1β3 years) or low risk tolerance, RD is safer because returns are guaranteed. For goals beyond 5 years, SIP in diversified equity mutual funds historically outperforms RD significantly (10β15% vs 6.5β8%). The ideal approach: use RD for short-term goals (emergency fund, down payment in 2 years) and SIP for long-term goals (retirement, child's education in 10+ years). Starting a SIP alongside an RD trains the habit of monthly investing.
Can I get a loan against my RD?βΌ
Yes. Banks offer loans or overdraft facilities against RDs, typically up to 90β95% of the deposited amount (not the full maturity value). The interest rate on the loan is usually 1β2% above the RD rate. This is useful when you need liquidity temporarily without breaking the RD and losing accumulated interest. Post Office RDs allow loans after completing 12 instalments β up to 50% of deposits. Note that the loan amount is based on the balance deposited, not the future maturity value.
What is the Post Office RD scheme and how does it compare?βΌ
The Post Office Recurring Deposit (PORD) currently offers 6.7% p.a. with quarterly compounding β backed by the Government of India (sovereign guarantee). Minimum deposit is βΉ100/month, no maximum. Key advantages: no TDS deduction, sovereign guarantee (vs DICGC βΉ5L cap for bank RDs), loans available after 12 months, and can be extended indefinitely in 5-year blocks. Disadvantage: slightly lower rate than some private banks or small finance banks. Best for risk-averse investors wanting government-backed safety with no TDS hassle.