📅 Recurring Deposit (RD) Calculator

Calculate your RD maturity amount with monthly deposits. Compare returns from SBI, HDFC, ICICI and other Indian banks.

Enter RD Details

₹
%

📊 RD Maturity Summary

Maturity Amount
₹1,28,942
Deposited
93%
Total Deposited
Interest Earned
Total Deposited₹1,20,000
Interest Earned₹8,942
Maturity Amount₹1,28,942
Compare with FD →

What Is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a term deposit offered by Indian banks and post offices where you invest a fixed amount every month for a predetermined period. At the end of the tenure, you receive the total deposited amount plus the accumulated interest — similar to an FD, but with monthly installments instead of a lump sum.

RDs are ideal for individuals who want to save regularly but cannot invest a large lump sum at once. They combine the safety of an FD with the monthly savings discipline of an SIP.

RD Interest Calculation

Indian banks compound RD interest quarterly. The formula used is:

A = R × [(1+i)^n – 1] / [1 – (1+i)^(-1/3)] Where: A = Maturity Amount R = Monthly Instalment n = Number of quarters (Tenure months ÷ 3) i = Quarterly Rate = Annual Rate / 400

📌 Example

Monthly Deposit: ₹5,000 | Rate: 7% p.a. | Tenure: 24 months

Total deposited = ₹5,000 × 24 = ₹1,20,000

Approximate maturity = ₹1,28,942 | Interest = ₹8,942

RD vs SIP – Which Is Better?

  • RD offers guaranteed returns, capital protection, and is ideal for conservative investors. Returns: 6–7.5%.
  • SIP in equity mutual funds offers potentially higher returns (10–15% historically) but with market risk. Better for long-term wealth creation.
  • For emergency funds and short-term goals (1–3 years), RD is safer. For long-term goals (5+ years), SIP is generally better.

RD Calculator – FAQs

What is the minimum tenure for an RD? +
Most banks offer RDs with a minimum tenure of 6 months. The maximum tenure is typically 10 years. Post Office RDs have a fixed 5-year tenure.
Is RD interest taxable? +
Yes, RD interest is fully taxable under "Income from Other Sources." TDS is deducted at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your income is below the taxable limit.
Can I open multiple RDs? +
Yes, you can open multiple RD accounts with the same or different banks. There is no restriction on the number of RDs you hold. This is a good strategy to create a "savings ladder."

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