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RD Calculator

Calculate Recurring Deposit maturity amount and interest earned

Maturity Amount
₹62,275
Total Deposits ₹60,000
Interest Earned ₹2,275

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a savings scheme offered by banks and post offices where you deposit a fixed amount every month for a predetermined period and earn interest on it. RD is perfect for individuals who want to build a savings habit and accumulate a corpus through regular monthly contributions.

Unlike Fixed Deposits which require a lump sum upfront, RDs allow you to invest small amounts monthly, making them accessible to salaried individuals and those with limited savings. RDs combine the discipline of systematic investing with the safety of guaranteed returns.

How to Use the RD Calculator

  1. Enter Monthly Deposit: Input the amount you'll invest every month (minimum ₹100)
  2. Set Interest Rate: Enter the annual interest rate offered (typically 5-7.5%)
  3. Choose Tenure: Select the deposit period in months (6-120 months)
  4. View Results: See maturity amount, total deposits, and interest earned

Understanding the RD Formula

RD maturity is calculated by applying compound interest to each monthly installment:

Where:

RD vs Other Investment Options

RD vs FD

FD requires lump sum investment while RD allows monthly deposits. FD typically offers slightly higher interest rates (0.25-0.5% more) but RD is better for building savings discipline.

RD vs SIP

RD offers guaranteed returns with zero market risk, while SIP in mutual funds can provide higher returns but with market volatility. RD is ideal for risk-averse investors, SIP for wealth creation.

RD vs PPF

PPF has a 15-year lock-in with tax benefits, while RD offers flexibility with 6-month to 10-year tenures. PPF interest is tax-free; RD interest is taxable.

Benefits of Recurring Deposits

RD Interest Rates in India (2025)

RD rates are typically 0.25-0.5% lower than FD rates for the same tenure:

Penalty for Missed Installments

Missing RD installments can result in penalties (typically ₹1-2 per ₹100 of monthly deposit). If you miss multiple consecutive installments (usually 3-4), the bank may close your RD account and return the deposited amount with reduced interest.

Tax Implications

RD interest is fully taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H if your income is below taxable limit.

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Disclaimer: This calculator provides estimates for informational purposes only. Actual results may vary based on your specific circumstances, lender terms, and market conditions. Always consult with a qualified financial advisor before making investment or borrowing decisions. QuickCalculators is not responsible for any financial decisions made based on these calculations.

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Frequently Asked Questions

What is RD?
RD (Recurring Deposit) is a savings scheme where you deposit a fixed amount every month for a predetermined period and earn interest on it. It's ideal for building savings discipline.
How is RD interest calculated?
RD interest is calculated quarterly using the formula: M = P × n × (n + 1) / 2 × (r / 100) / 4, where P is monthly deposit, n is number of months, and r is annual interest rate.
What happens if I miss an RD installment?
Missing installments may result in penalty charges (typically ₹1-2 per ₹100). If you miss multiple installments, the RD account may be closed and you'll receive the deposited amount with reduced interest.
Can I withdraw RD before maturity?
Yes, premature withdrawal is allowed but with a penalty (usually 1-2% lower interest rate). Some banks may also charge a processing fee for early closure.
Is RD better than SIP?
RD offers guaranteed returns with no market risk, while SIP in mutual funds can offer higher returns but with market risk. RD is better for risk-averse investors, SIP for wealth creation.