RD Calculator Recurring Deposit
Calculate how much your monthly deposits will grow to by maturity — with interest and a year-wise breakdown.
RD interest is taxable at your income-tax slab; TDS applies if annual interest crosses the prescribed threshold.
What Is a Recurring Deposit?
a recurring deposit (rd) is a savings product offered by banks and post offices where you commit to depositing a fixed amount every month for a chosen tenure at a predetermined interest rate. unlike a fixed deposit where you invest a lump sum upfront, an rd suits people who want to set aside a smaller amount each month and still earn compound interest on it. it is one of the safest ways to build a corpus steadily over time, with zero market risk.
The RD Maturity Formula
rd maturity is calculated using a compound-interest formula, where each monthly deposit earns interest over the remaining months. the standard formula is:
M = R × [((1 + i)ⁿ − 1) / (1 − (1 + i)^(−1/3))]
where R is the monthly deposit, i is the periodic interest rate (annual rate ÷ compounding periods per year), and n is the number of compounding periods. the total interest earned is simply:
interest earned = maturity amount − total amount deposited
total amount deposited = monthly instalment × number of months
Example
monthly deposit: ₹5,000 | tenure: 5 years (60 months) | rate: 7% p.a. compounded quarterly
total invested = ₹3,00,000
interest earned ≈ ₹58,000
maturity amount ≈ ₹3,58,000
the exact figure varies slightly depending on the compounding frequency chosen — quarterly is the standard used by most indian banks.
How to Use This Calculator
- enter your monthly deposit amount in the 'monthly deposit' field.
- select the compounding frequency — quarterly is the default used by most banks.
- use the slider or type your annual interest rate directly.
- set the deposit tenure in years and months.
- the calculator instantly shows your total invested, interest earned, and maturity value — along with a year-wise breakdown below.
Why Compounding Frequency Matters
compounding frequency determines how often the interest is added back to the principal, which then earns interest itself. most recurring deposits in india compound quarterly — meaning interest is added every three months. the more frequently interest compounds, the higher the effective return on the same nominal rate.
for example, monthly compounding on the same rd rate gives a marginally higher maturity amount than quarterly compounding, even if the stated rate is identical. over long tenures, this difference becomes meaningful.
Current RD Interest Rates — Major Banks (2026)
rates are indicative for general tenures; senior citizen rates are typically 0.25%–0.50% higher.
| Bank | General Rate (p.a.) | Senior Citizen Rate (p.a.) |
|---|---|---|
| State Bank of India | 6.80% – 7.00% | 7.30% – 7.50% |
| HDFC Bank | 4.50% – 7.20% | 5.00% – 7.75% |
| ICICI Bank | 4.75% – 7.25% | 5.25% – 7.80% |
| Kotak Mahindra Bank | 6.00% – 7.40% | 6.50% – 7.90% |
| Axis Bank | 5.75% – 7.25% | 6.25% – 7.75% |
| IDFC First Bank | 4.50% – 6.50% | 5.00% – 7.00% |
| Bank of Baroda | 4.25% – 7.15% | 4.75% – 7.65% |
Benefits of Using This Calculator
- accurate results — gives the precise maturity amount without manual calculations or formula lookup.
- easy comparison — adjust tenure and rate to compare different scenarios side-by-side.
- year-wise breakdown — see how your corpus grows year by year, not just at the end.
- better planning — understand the real impact of your monthly commitment before you open an account.
- time-saving — no spreadsheet needed; results appear the moment you change any input.
Types of Recurring Deposits
not all rds are identical. here are the main variants:
- regular rd — standard monthly deposit product at a fixed rate, available at all banks and post offices.
- flexi rd — allows varying the monthly deposit within a defined band; useful if your income is irregular.
- tax-saving rd — rare; some co-operative banks offer rd variants with section 80c benefit, though these are not mainstream.
- senior citizen rd — same structure as a regular rd but with a higher interest rate (typically +0.25% to +0.50%) for depositors above 60.
- nro rd — available to non-resident indians under nro accounts, subject to tds and rbi guidelines.
Who Should Consider an RD?
- salaried individuals who receive a fixed income every month and want to save a portion of it systematically.
- first-time savers who are not ready for market-linked products and need guaranteed, predictable returns.
- people saving for a near-term goal — a vacation, vehicle down payment, or emergency fund — with a defined horizon.
- retired individuals or those with low risk appetite who prefer capital protection over high returns.
- anyone who finds lump-sum fd difficult because they don't have a large amount available at one time.
RD vs FD vs SIP
| Feature | Recurring Deposit (RD) | Fixed Deposit (FD) | SIP (Mutual Fund) |
|---|---|---|---|
| Investment Type | Monthly fixed deposit | One-time lump sum | Monthly investment |
| Risk Level | Very Low | Very Low | Moderate to High |
| Returns | Fixed and predictable | Fixed and predictable | Market-linked; not guaranteed |
| Compounding | Usually quarterly | Usually quarterly | Daily (NAV-based) |
| Best For | Disciplined monthly savings | Parking a lump sum | Long-term wealth creation |
| Flexibility | Fixed monthly commitment | Locked-in amount | Can pause, increase, or stop |
| Liquidity | Moderate (penalty on early exit) | Low (penalty applies) | High (redeem any time) |
| Tenure | 6 months – 10 years | 7 days – 10 years | No fixed tenure |
| Return Potential | Low to Moderate | Low to Moderate | High (long term) |
Tax on RD Interest
the interest earned on a recurring deposit is added to your total income for the financial year and taxed at your applicable slab rate. there is no special exemption — it is treated like savings account or fd interest.
banks are required to deduct tds if the total interest credited across all your deposits in a branch exceeds ₹40,000 in a year (₹50,000 for senior citizens). if your total income is below the taxable limit, you can submit form 15g (for individuals below 60) or form 15h (for senior citizens) to avoid tds deduction.
note that tds is deducted on interest income, not on the maturity amount — your principal is always returned in full.
Premature Withdrawal
most banks allow you to close an rd before its scheduled maturity, but premature withdrawal usually comes with a cost. the bank typically recalculates interest at the rate applicable for the period the rd was actually held (which may be a lower tier than the booked rate) and also deducts a penalty of 0.5%–1% on the interest.
missing monthly instalments can also affect your rd — a penalty is usually levied per missed payment, and multiple consecutive misses may lead to account closure or automatic conversion to a lower-rate product.