RD Calculator
Calculate Recurring Deposit Maturity Online
Plan your financial future with guaranteed income. Adjust the inputs and see how much you can receive.
Guaranteed Income
Tax Benefit as per IT Act
Tax Benefit as per IT Act
RD CalculatorTotal Amount Invested
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Total Interest Earned
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Maturity Amount
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Interest Rate
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What is a Recurring Deposit (RD)?
A recurring deposit is a savings plan in which you deposit a certain sum every month for a set period of time, usually 6 months to 10 years. At maturity, you will get your total deposits as well as the accumulated compound interest. Banks, post offices, and NBFCs all provide RDs, with the majority requiring a monthly deposit of Rs 500 or more. The Post Office RD starts at Rs 100 per month.
Consider a RD as a disciplined and low-risk alternative to a savings account. It earns much more while offering the same DICGC insurance coverage of up to Rs 5 lakh, making it ideal for short to medium-term goals.
What is an RD Calculator?
An online RD calculator uses the monthly compounding method to estimate your maturity amount and interest earned, saving you from doing the math manually. It enables you to compare tenures, change monthly contributions, and plan for specific financial goals like a trip, emergency fund, or down payment.
How to Use the RD Calculator
Using this calculator takes under a minute. To get your full RD maturity breakdown, do the following:
- Choose the type of customer you are: Regular, Senior Citizen, or Minor.
- Enter the amount you want to deposit each month.
- Put in the yearly interest rate that your bank offers.
- Choose the duration of time in months or years.
- To see the full interest breakdown and the maturity amount, click Calculate.
Try changing the duration of time or the monthly amount after you see the results to see how minor changes change your final corpus. Even adding Rs 500 to your monthly deposit can add thousands to your maturity value over the course of 3 to 5 years.
RD Interest Calculation Formula
RD interest is compounded quarterly. Each monthly installment generates compound interest for the remaining months of the term, necessitating a specific formula rather than a simple CI formula.
RD Maturity Formula: M = R × [(1 + i)(n−1) + (1 + i)(n−2) + ... + (1 + i)1/3] Where: M is the maturity amount, R is the monthly deposit, i is the quarterly interest rate (annual rate divided by 400), and n is the number of quarters.
For a two-year RD at a 7% annual rate, i = 7/400 = 0.0175, with n = 8 quarters. The first installment earns CI for all eight quarters, the second for seven, and so on until the final installment, which yields interest for only one quarter.
RD Calculation Examples
| Parameter | Value |
|---|---|
| Monthly deposit | Rs 5,000 |
| Rate | 7% per annum |
| Tenure | 12 months |
| Total deposit | Rs. 60,000 |
| Interest earned | Rs 2,380 |
| Maturity amount | Rs 62,380 |
| Parameter | Value |
|---|---|
| Monthly deposit | Rs 10,000 |
| Rate | 7.5% per annum |
| Tenure | 36 months |
| Total deposit | Rs 360,000 |
| Interest earned | Rs 42,100 |
| Maturity amount | Rs 402,100 |
| Parameter | Value |
|---|---|
| Monthly deposit | Rs. 2,000 |
| Rate | 6.8% per annum |
| Tenure | 60 months |
| Total deposit | Rs. 120,000 |
| Interest earned | Rs. 21,980 |
| Maturity amount | Rs. 141,980 |
Types of Recurring Deposits
| Type | Who It Is For | Key Feature | Special Benefit |
|---|---|---|---|
| Regular RD | General public | Fixed monthly deposit | Standard bank rates |
| Senior Citizen RD | Age 60 and above | Higher interest rate | Typically 0.25-0.50% extra over the regular rate |
| Minor RD | Below 18 and operated by parents | Builds savings habit early | Low minimum deposit at some banks |
| Tax-Saving RD | General public | 5-year lock-in | Available at select banks only |
| Flexi RD | Variable income earners | Variable monthly amount | Deposit more in high-income months |
| Post Office RD | Risk-averse savers | 5-year fixed tenure | Sovereign guarantee, auto-renewal option |
RD Interest Rates in India 2026
| Bank | Regular Rate | Senior Citizen Rate | Minimum Monthly Deposit |
|---|---|---|---|
| SBI | 6.50-7.00% | 7.00-7.50% | Rs. 100 |
| HDFC Bank | 6.60-7.10% | 7.10-7.60% | Rs. 1,000 |
| ICICI Bank | 6.60-7.10% | 7.10-7.60% | Rs. 500 |
| Axis Bank | 6.70-7.10% | 7.20-7.60% | Rs. 500 |
| PNB | 6.50-7.00% | 7.00-7.50% | Rs. 100 |
| Kotak Mahindra | 6.50-7.20% | 7.00-7.70% | Rs. 100 |
| Post Office RD | 6.70% | 6.70% | Rs. 100 |
Post Office RD
| Feature | Details |
|---|---|
| Current Rate | 6.70% per annum |
| Tenure | 5 years (fixed) |
| Minimum Deposit | Rs 100 per month (multiples of Rs 10) |
| Maximum Deposit | No upper limit |
| Guarantee | Sovereign (Government of India) |
| Auto-renewal | Available on maturity |
| Premature closure | Allowed after 3 years at a reduced rate |
| Loan against RD | Up to 50% of the balance after 12 months |
RD vs FD: Which is Better?
For example: Rs 60,000 total investment for a year. As a 7% FD, the entire Rs 60,000 earns interest from day one, totaling approximately Rs 4,200 in interest. As an RD at 7% and Rs 5,000 per month, only the initial installment is earned for the entire year. Total RD interest amounts to around Rs 2,730. When a lump payment is available, the FD performs better in terms of returns.
| Feature | RD | FD |
|---|---|---|
| Investment style | Monthly installments | One-time lump sum |
| Interest rate | Slightly lower (6.5-7.5%) | Slightly higher (6.5-8.5%) |
| Effective interest | Lower as deposits are added monthly | Higher as the full amount is earned from day 1 |
| Best for | Salaried, monthly savers | Those with a lump sum ready to invest |
| DICGC cover | Up to Rs 5 lakh | Up to Rs 5 lakh |
RD vs. SIP: Which is Better?
The balanced approach is to use RD for short-term goals such as holidays, emergency funds, and down payments within one to three years, where capital safety is critical. Use SIPs for long-term goals such as retirement or kids' education (7 years or more) because market compounding can greatly outperform RD returns.
| Feature | RD | SIP (Equity Mutual Fund) |
|---|---|---|
| Returns | Fixed 6.5-7.5% guaranteed | 12-15% historical average (not guaranteed) |
| Risk | Zero risk | Market-linked risk |
| Tenure | Fixed (6 months to 10 years) | Flexible, open-ended |
| Liquidity | Limited (penalties on early exit) | High (most funds, exit anytime) |
| Tax on gains | Interest taxed as income (slab rate) | LTCG at 12.5% after Rs 1.25 lakh (equity) |
| Best for | Short-term goals, safety-first savers | Long-term wealth creation (5 years plus) |
Tax on Recurring Deposit Interest (TDS Rules)
RD interest is added to your overall income and taxed at the applicable slab rate. The relevant TDS reference is Section 193(1)(15)(iii) (earlier Section 194A). Here are the key TDS rules to know:
- TDS is deducted if the total interest on time deposits with a banking company or co-operative bank exceeds Rs 50,000 per financial year (Rs 1,00,000 for senior citizens).
- TDS is 10% if PAN is provided. Without PAN, the higher applicable rate may apply as per tax law in force.
- If your total income is below the taxable limit and you meet the prescribed conditions, you may submit Form 15G (earlier Form 15G/15H) to seek non-deduction of tax.
- Even if the RD has not yet matured, interest accrued on an annual basis under Income from Other Sources is taxable.
- Section 80TTA does not apply to RD interest. It covers only eligible savings account interest.
Premature Withdrawal and Penalties
Most banks allow premature closure of an RD, subject to their policy terms. The applicable interest reduction or penalty is bank-specific and should be checked with the issuer before opening the deposit. In some cases, the minimum period may be as low as 7 days, while in others it may be longer. For Post Office RD, premature closure is permitted after 3 years, subject to the applicable rules. Post Office RD permits premature closure after three years and pays a reduced rate. Some banks offer loans against an RD of up to 50% of the sum after 12 months, which is a better option than breaking the RD completely because the deposit continues to earn interest.
RD Laddering Strategy
RD laddering is a practice in which you open many RDs with staggered maturity dates rather than investing all of your savings in one RD.
For example, split Rs 5,000 every month over four RDs, one for each quarter. RD 1 matures in 6 months, RD 2 matures in 12 months, RD 3 matures in 18 months, and RD 4 matures in 24 months. This approach provides you with consistent liquidity every six months, allows you to reinvest at current rates, and prevents the risk of locking all of your resources into a single tenure.
Laddering is particularly effective when interest rate increases are to be expected. If interest rates rise, shorter-term RDs mature sooner and can be reinvested at higher rates.
Benefits of Using an RD Calculator
- Calculates the maturity amount instantly, eliminating the need for tedious formula work.
- Compares different durations and monthly amounts side by side.
- Creates a monthly budget that shows how much money should be set aside.
- Helps create a goal-based savings plan for specific objectives.
- Includes senior citizen rates and Post Office RD for a comprehensive comparison.
Tips to Maximize RD Returns
- Before you open an account, compare rates from several banks. Small financing banks and certain cooperative banks frequently provide 0.5% to 1% higher rates than large commercial banks.
- Senior citizens should always ask for the senior citizen rate. The additional 0.25% to 0.50% compounds meaningfully over a three to five-year period.
- Prevent early withdrawal whenever possible. Rather than breaking your RD, consider taking out a loan against it.
- Set up auto-debit to ensure that monthly payments are never missed. Most banks charge a penalty for missing installments.
- Consider Post Office RD for amounts above Rs 5 lakh, as the sovereign guarantee eliminates direct risk that DICGC insurance does not totally cover.
- Use RD laddering when interest rates are expected to go up, allowing certain deposits to be reinvested at higher rates as they mature.
