Recurring Deposit (RD) Calculator
Calculate RD maturity value, interest earned & year-wise growth for your monthly savings.
RD Calculator
Maturity Value
₹0
Total Invested
₹0
Interest Earned
₹0
Year-wise RD Growth
| Year | Invested | Interest | Balance |
|---|
RD Returns by Tenure
Maturity for ₹10,000/month @ 7.1% (Quarterly Compounding)
| Tenure | Total Invested | Interest Earned | Maturity Value |
|---|
How Recurring Deposit Interest is Calculated
A Recurring Deposit (RD) is a savings instrument that allows you to invest a fixed amount every month for a predetermined period and earn interest on it. Banks in India typically compound RD interest quarterly, which helps your savings grow faster than simple interest.
RD Calculation Formula
M = R × [(1 + i)^n - 1] / (1 - (1 + i)^(-1/3))
- M = Maturity Value
- R = Monthly Installment
- i = Quarterly Interest Rate (Annual Rate / 400)
- n = Number of Quarters (Months / 3)
* Because deposits are made monthly but interest is compounded quarterly, the formula accounts for fractional periods.
Example Calculation
For a monthly RD of ₹10,000 at 7.1% p.a. for 5 years (60 months):
• Monthly Installment: ₹10,000
• Total Invested: ₹6,00,000 (₹10,000 × 60 months)
→ Interest Earned: ₹1,08,741
→ Maturity Value: ₹7,08,741
RD vs FD: Which is Better?
Recurring Deposit (RD)
- • Invest small amounts monthly
- • Best for salaried individuals
- • Builds a savings habit
- • Slightly lower interest rate than FD
Fixed Deposit (FD)
- • Invest a lump sum amount once
- • Best if you have idle cash
- • Higher interest rate than RD
- • Multiple payout options available
Benefits of Investing in RD
- 1 Guaranteed Returns: RD offers fixed, guaranteed returns unaffected by market fluctuations, making it a safe investment option.
- 2 Financial Discipline: The monthly commitment enforces a regular savings habit, ideal for building a corpus over time.
- 3 Low Minimum Investment: You can start an RD with as low as ₹100/month (in post office) or ₹500/month (in most banks).
- 4 Loan Facility: Banks offer loans (up to 80-90% of the RD balance) against your recurring deposit at competitive interest rates.
Current RD Interest Rates 2025
Compare RD rates from top banks for 1-5 year tenure
| Bank | General | Senior Citizen |
|---|---|---|
| SBI | 6.80% – 7.10% | 7.30% – 7.60% |
| HDFC Bank | 6.60% – 7.20% | 7.10% – 7.70% |
| ICICI Bank | 6.70% – 7.10% | 7.20% – 7.60% |
| Bank of Baroda | 6.85% – 7.25% | 7.35% – 7.75% |
| Kotak Mahindra | 6.80% – 7.20% | 7.30% – 7.70% |
| Post Office | 7.00% (5 Yrs) | 7.00% (5 Yrs) |
* Rates are indicative. Senior citizens get additional 0.50% p.a. over card rate. Last updated: Jan 2025.
Taxation on RD Interest
TDS Rules
- • 10% TDS if interest exceeds ₹40,000/year
- • ₹50,000 limit for senior citizens
- • 20% TDS if PAN not provided
- • No TDS on 15G/15H (if eligible)
Tax on Interest
- • RD interest is fully taxable
- • Taxed at your income slab rate
- • Deducted under "Income from Other Sources"
- • Post Office RD (5 Yr) qualifies for Sec 80C deduction