RD Calculator — India (₹)

Calculate your Recurring Deposit maturity amount and total interest earned. Plan disciplined monthly savings with guaranteed returns and milestone projections.

🔄 RD Details
Compounding is done quarterly as per Indian bank standards
💡 RD vs FD
• RD: Deposit monthly, ideal for salaried individuals
• FD: One-time deposit, slightly higher effective rate
• TDS: 10% on interest if > ₹40,000/year
• Min tenure: Usually 6 months in banks
• Premature withdrawal: Penalty of ~1%
Maturity Amount₹1,29,099
Total Deposited₹1,20,000
Interest Earned₹9,099
Wealth Gain7.6%
🎯 Milestone Projections
6 months₹30,615
12 months₹62,311
24 months₹1,29,099

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a deposit scheme offered by banks and post offices where you invest a fixed amount every month for a predetermined period (6 months to 10 years). At maturity, you receive the total deposited amount plus accumulated interest. RD is essentially a monthly installment version of a Fixed Deposit — it helps build disciplined savings habits.

In India, most banks compound RD interest quarterly, similar to FDs. RD interest rates are currently 6.5–7.5% p.a. for regular customers and 7–8% for senior citizens. Post Office RD offers 6.7% p.a. quarterly compounding — a government-guaranteed option.

How to Use This RD Calculator

  • Monthly Deposit: Enter the fixed amount you'll deposit each month (e.g., ₹5,000).
  • Interest Rate: Enter the annual interest rate (e.g., 7.0% for SBI RD). Check your bank's current RD rates before entering.
  • Tenure: Select the number of months (6 months to 120 months). RDs can run from 6 months to 10 years.
  • Milestone table: See how your RD corpus looks at 6, 12, 24, 36 months to help plan partial goals.

Key Factors That Affect RD Returns in India

  • Interest Rate: Small Finance Banks often offer 7–8% RD rates vs 6.5–7% at PSU banks. Senior citizens typically get 0.5% more.
  • Tenure: Longer tenure locks your money at the starting rate. In a rising rate environment, shorter-tenure RDs let you reinvest at higher rates after maturity.
  • Tax: RD interest is fully taxable at your slab rate. TDS is deducted if interest exceeds ₹40,000/year. Submit Form 15G/15H to avoid TDS if income is below taxable limit.
  • Premature Closure Penalty: Breaking an RD before maturity typically reduces the effective rate by 0.5–1%. Plan RD tenure to match actual need dates.

Tips to Maximise RD Returns in India

  • Compare Small Finance Bank rates: AU Small Finance, Ujjivan, and ESAF offer RD rates 0.75–1% higher than major PSU banks, with the same DICGC insurance up to ₹5L.
  • Use RD for short-term goal saving: If you're saving for a goal 1–3 years away (car down payment, vacation), an RD guarantees returns without market risk — unlike equity mutual funds.
  • Consider Post Office RD for guaranteed returns: Post Office RD offers 6.7% p.a. with quarterly compounding and government backing — suitable for extremely risk-averse investors.
  • Combine RD with emergency fund planning: Rather than keeping emergency funds in a savings account at 3–4%, use a short-tenure RD (6 months) for slightly higher returns, keeping one account for instant liquidity.

Disclaimer: RD returns are based on assumed interest rates. Actual rates vary by bank. Interest is fully taxable at your applicable income tax slab rate. Always verify current rates with your bank.