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Home / Calculators / RD Calculator

RD Calculator

Recurring Deposit maturity calculator — find what a monthly RD becomes at any rate and tenure. Works for bank RDs and Post Office RDs.

🇮🇳All amounts in ₹ INR · India tax law · FY 2025–26

RD inputs

Total invested
₹3,00,000
Interest earned
₹59,664
Maturity value
₹3,59,664

What is a Recurring Deposit?

An RD lets you deposit a fixed amount monthly into a bank or Post Office for a fixed tenure (6 months – 10 years) at a pre-agreed interest rate. Interest is typically compounded quarterly. Great for salaried Indians wanting disciplined, risk-free saving without the lumpsum requirement of an FD.

Formula

M = R × [((1+i)n − 1) / i] × (1+i)

R = monthly deposit, i = monthly rate, n = months.

Tax on RD interest

RD interest is taxed at your slab rate. TDS at 10% if annual interest crosses ₹40,000 (₹50,000 senior). Post Office RDs do not deduct TDS but interest is still taxable.

RD vs FD vs SIP

  • RD — fixed monthly deposit, guaranteed return, 6.5–7.5%.
  • FD — lumpsum, slightly higher rate, no monthly commitment.
  • SIP (debt fund) — comparable returns, T+1 liquidity, slab-rate tax post-2023.

FAQ

RD suits monthly savers; FD suits lumpsum holders. Returns are similar; RD has a small disadvantage because early deposits compound longer than late deposits.
Yes, with 0.5–1% interest penalty. Post Office RD allows premature closure after 3 years with savings-account rate applied.
Currently 6.7% (Q4 FY 2024-25), compounded quarterly, 5-year tenure with 1-year extensions.

Authoritative sources

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