RD Calculator

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a savings scheme offered by Indian banks and the Post Office where you deposit a fixed amount every month for a predetermined tenure. Unlike a Fixed Deposit (FD) which requires a lump sum, an RD lets you build a corpus gradually from monthly savings. At maturity, you receive the total of all deposits plus compound interest — guaranteed, with zero market risk.

RD Maturity Amount Formula

Indian banks use quarterly compounding for RDs. The formula for each monthly installment is:

M = P × (1 + r/n)^(n×t)

Where P = monthly deposit, r = annual interest rate (decimal), n = 4 (quarterly), t = remaining tenure in years. The total maturity amount is the sum of all installments compounded individually for their remaining tenure. This calculator uses this exact method — the standard formula used by SBI, HDFC, and ICICI Bank.

Example: ₹5,000/month × 24 months @ 7.0% pa = ₹1,28,512 maturity (₹1,20,000 deposited + ₹8,512 interest).

How to Use This RD Calculator

1. Enter your Monthly Deposit amount (minimum ₹100 for most banks).
2. Enter the Interest Rate — check your bank's current RD rate (typically 6.5–9.0% pa).
3. Set the Tenure in Months (most banks offer 6 months to 10 years = 120 months).
4. Read the Maturity Amount, Total Deposits, and Interest Earned instantly.
5. Use the growth table to see month-by-month accumulation.

Current RD Interest Rates in India (2024–25)

• SBI: 6.50% – 7.00% pa (general), 7.00% – 7.50% pa (senior citizens)
• HDFC Bank: 7.00% – 7.50% pa
• ICICI Bank: 7.00% – 7.50% pa
• Post Office RD: 6.70% pa (government-backed, very safe)
• Small Finance Banks (Ujjivan, Jana, Equitas): 7.50% – 9.00% pa (highest rates, DICGC insured up to ₹5 lakh)

Tax on RD Interest — TDS Rules

RD interest is taxable as Income from Other Sources at your income tax slab rate. TDS of 10% is deducted by the bank if total interest across all deposits in that bank exceeds ₹40,000/year (₹50,000 for senior citizens). If your total income is below the taxable limit, submit Form 15G (non-senior) or Form 15H (senior citizens) to avoid TDS deduction.

RD vs FD vs SIP — Which is Better?

• RD: Best for salaried individuals who want to save monthly. Fixed returns, zero risk, ideal for short-term goals (1–3 years).
• FD: Better when you have a lump sum. Same guaranteed return, but slightly more flexible — no monthly commitment.
• SIP (Mutual Fund): Market-linked returns (historical CAGR 10–15%), suitable for long-term goals (5+ years). Higher potential returns but principal not guaranteed.