RD Calculator
Project the maturity of a Recurring Deposit in India for monthly contributions over any tenure. Free RD calculator with current bank rates and total interest.
A Recurring Deposit, or RD, is the SIP equivalent for fixed income. You commit a fixed monthly amount, the bank or post office credits interest at a contracted rate, and at maturity you receive the total deposits plus accumulated interest. RDs are typically used by salaried Indians who want disciplined monthly saving without the volatility of mutual funds. The RD calculator on this page tells you the maturity value, total deposits and interest earned for any combination of monthly amount, rate and tenure.
Recurring Deposit
Why use the RD Calculator
RDs are simple but the maths can mislead. The maturity is not just the monthly amount times the number of months. Each month's deposit earns interest for a different length of time, with the first deposit compounding longest and the last deposit barely compounding at all. The calculator does this iteration correctly so you see the actual maturity rather than a back of the envelope estimate.
Benefits at a glance
Accurate iterative maturity calculation
The calculator compounds each monthly deposit for the remaining months in the tenure. The output matches what your bank or post office passbook will show at maturity.
Compare across banks and post offices
Public sector bank RDs are typically 6.5 to 7 percent. Private banks 5.5 to 7 percent. Post office RD is 6.7 percent. Senior citizens get a small premium. The calculator handles all rate variations.
Useful for short term goals
RDs work well for goals 1 to 5 years away where you want guaranteed returns and disciplined saving. For longer horizons, SIPs in equity mutual funds usually outperform.
Year by year balance growth
The chart shows how the balance accumulates as monthly contributions add up and earn interest. The curve is gentler than an equity SIP but more predictable.
How to use the RD Calculator
- 1
Enter the monthly deposit
How much you can commit to deposit every month. RDs accept amounts from 100 rupees onwards in most banks. Post office RDs have a minimum of 100 rupees per month.
- 2
Enter the interest rate
Use the rate offered by your bank for the chosen tenure. Most major banks publish their RD rates online. Senior citizens get 50 basis points more.
- 3
Set the tenure in years
RD tenures range from 6 months to 10 years. The most common tenures are 1, 3 and 5 years. Post office RD has a fixed 5 year tenure.
- 4
Read the maturity and interest earned
The maturity value is your total at the end of the tenure. The interest earned is the difference between maturity and total deposits. TDS of 10 percent applies if interest exceeds 40,000 in a year.
Frequently asked questions
How is RD interest calculated?
Each monthly deposit earns interest for the remaining months in the tenure, compounded quarterly per the standard Indian banking convention. The first month's deposit earns the most because it stays the longest. The last month's deposit barely compounds. The calculator iterates month by month for accuracy.
Is RD interest taxable in India?
Yes, RD interest is fully taxable at your slab rate. Banks deduct TDS at 10 percent if the total interest in a financial year exceeds 40,000 (50,000 for senior citizens). For taxpayers below the taxable threshold, Form 15G or 15H avoids TDS. Post office RD interest is also taxable, but TDS is not deducted by the post office; you must declare and pay tax separately.
Should I take an RD or a SIP?
RD if you need guaranteed returns and the goal is 1 to 3 years away. SIP if the goal is 5 plus years away and you can tolerate market volatility. RD interest is taxable at slab rate, often making post tax returns 4.5 to 5 percent for higher earners. Equity mutual fund SIPs over long periods comfortably beat this after tax. The right choice depends on your horizon and risk tolerance.
Can I miss a monthly RD installment?
Most banks charge a small penalty (typically 1 to 2 rupees per 100 rupees per month of delay) for missed installments. Post office RD allows up to 4 missed installments before the account becomes inactive. Reactivation requires paying the missed amounts plus a penalty. Avoid missing installments if you can.
Is there a tax saver RD?
No, there is no tax saving RD in India. The only tax saving fixed return product under Section 80C is the 5 year tax saver FD. RDs are a regular taxable savings instrument.
Can I prematurely close an RD?
Yes, with a penalty. Most banks reduce the applicable rate by 0.5 to 1 percent for premature closure. Post office RD allows premature withdrawal after 3 years, with the savings account rate applied instead of the RD rate. Premature closure usually defeats the purpose of an RD, so commit to the tenure if possible.
Is post office RD better than bank RD?
Post office RD has a fixed 5 year tenure at 6.7 percent (as notified for FY 2025 to 2026 Q4). Bank RDs offer more tenure flexibility but rates vary. For a 5 year horizon, post office RD is often competitive. For shorter or longer tenures, banks may offer better rates. Both carry similar credit risk for practical purposes (post office is sovereign backed, bank deposits are DICGC insured up to 5 lakh).
Final word
An RD is the simplest disciplined saving tool in Indian fixed income. Use the calculator to size your monthly deposit against a short term goal, then choose between a bank or post office RD based on the rate and tenure that fits. For longer horizons, the SIP calculator will likely make a more compelling case for equity, but the RD remains useful for the safer, more predictable corner of the portfolio.
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