Updated June 2026
RD Calculator Calculate Recurring Deposit Maturity Online
Calculate your Recurring Deposit maturity amount, total investment, and interest earned instantly using Arthzo's free RD Calculator.
₹100
Min. Deposit/Month
Up to 8.5%
Best RD Rate 2026
6M–10Y
Flexible Tenure
DICGC
Insured up to ₹5L
RD Calculator
📅 Rates Updated June 2026
Monthly Deposit (₹)
₹5,000
Interest Rate (% p.a.)
6.50%
Investment Tenure
5 Years
Compounding Frequency
Quarterly
Maturity Amount
₹3,54,954
After 5 Years at 6.50% p.a.
Total Invested
₹3,00,000
Interest Earned
₹54,954
Effective Return
18.3%
Monthly Deposit
₹5,000
- Invested 85%
- Interest 15%
Investment Summary
A detailed breakdown of your RD investment at current inputs
| Particular | Amount |
|---|---|
| Monthly Deposit | ₹5,000 |
| Investment Tenure | 5 Years (60 Months) |
| Interest Rate (p.a.) | 6.50% |
| Compounding Frequency | Quarterly |
| Total Investment | ₹3,00,000 |
| Interest Earned | ₹54,954 |
| Maturity Amount | ₹3,54,954 |
What is an RD Calculator?
Quick answers for AI and search — optimised for Google and Bing AI Overviews
Quick Answer
What is an RD Calculator?
An RD Calculator is a free online tool that helps investors estimate the maturity value of a Recurring Deposit based on monthly contribution, interest rate, and tenure. It uses the quarterly compounding formula to calculate total invested amount, interest earned, and final maturity value — instantly and accurately.
Key Takeaways
- Calculates maturity amount instantly
- Helps compare bank RD rates
- Useful for financial planning
- Suitable for salaried & students
- Interest compounded quarterly
Example Calculation
Monthly Deposit
₹5,000
Interest Rate
7.00%
Tenure
5 Years
Total Deposit
₹3,00,000
Interest Earned
~₹55,440
Maturity Amount
~₹3,55,440
How to Use the RD Calculator
1
Enter your monthly deposit amount (₹100 to ₹1,00,000)
2
Enter the annual RD interest rate offered by your bank
3
Select your investment tenure in months or years
4
Choose compounding frequency (default: Quarterly)
5
Click Calculate to view maturity amount and interest earned
How is RD Interest Calculated?
The standard formula used by all Indian banks for quarterly compounding
RD Maturity Formula (Standard — RBI Compliant)
M = R × [(1 + i)ⁿ – 1] / [1 – (1 + i)^(–1/3)]
- M = Maturity Amount — the total amount you receive at the end of tenure
- R = Monthly Deposit — the fixed instalment you pay every month
- i = Quarterly interest rate = Annual Rate ÷ 4 ÷ 100
- n = Number of quarters = Tenure in Months ÷ 3
Worked Example: Monthly deposit ₹5,000 | Rate 7% p.a. | Tenure 5 Years (60 months)
i = 7 ÷ 4 ÷ 100 = 0.0175 | n = 60 ÷ 3 = 20 quarters
M = 5000 × [(1.0175)²⁰ – 1] / [1 – (1.0175)^(–1/3)] ≈ ₹3,55,440
Interest Earned = ₹3,55,440 – ₹3,00,000 = ₹55,440
Note: The first instalment earns interest for the entire tenure while the last instalment earns interest for just one month. This is why RD provides better returns than simple interest but slightly lower than FD on an equivalent amount. Interest is always compounded quarterly as per standard Indian banking practice.
i = 7 ÷ 4 ÷ 100 = 0.0175 | n = 60 ÷ 3 = 20 quarters
M = 5000 × [(1.0175)²⁰ – 1] / [1 – (1.0175)^(–1/3)] ≈ ₹3,55,440
Interest Earned = ₹3,55,440 – ₹3,00,000 = ₹55,440
Note: The first instalment earns interest for the entire tenure while the last instalment earns interest for just one month. This is why RD provides better returns than simple interest but slightly lower than FD on an equivalent amount. Interest is always compounded quarterly as per standard Indian banking practice.
Benefits of Recurring Deposits
Why millions of Indians choose RD as their primary savings instrument
Low-Risk Investment
Guaranteed returns unaffected by market volatility. Deposits insured up to ₹5 lakh by DICGC.
Guaranteed Returns
Interest rate locked at opening. You know exactly how much you'll receive at maturity.
Flexible Tenure
Choose from 6 months to 10 years. Match your RD tenure to any short or long-term goal.
Disciplined Savings
Monthly commitment builds a strong savings habit — ideal for salaried individuals and beginners.
Loan Against RD
Get a loan or overdraft of up to 90% of your RD value at interest just 1-2% above RD rate.
Easy to Open
Open online via net banking or mobile app in minutes. Minimum ₹100/month at public banks.
RD vs FD — Key Differences
Choose the right deposit product for your financial situation
| Feature | Recurring Deposit (RD) | Fixed Deposit (FD) |
|---|---|---|
| Investment Mode | Fixed Monthly Instalments | One-time Lump Sum |
| Minimum Amount | ₹100/month (public banks) | ₹1,000 (most banks) |
| Interest Rate (2026) | 5.5% – 8.5% p.a. | 5.5% – 9.0% p.a. |
| Interest Compounding | Quarterly (standard) | Quarterly / Monthly |
| Flexibility | High — small monthly savings | Moderate — needs lump sum |
| Suitable For | Regular Savers / Salaried | Lump Sum Investors |
| Tax Saving (Sec 80C) | ✗ Not available | ✓ 5-Year Tax Saver FD |
| Premature Withdrawal | ✓ With 0.5–1% penalty | ✓ With 0.5–1% penalty |
| Loan Against Deposit | ✓ Up to 90% of value | ✓ Up to 90% of value |
| Interest Taxability | Taxable per slab | Taxable per slab |
Current RD Interest Rates 2026
Bank-wise recurring deposit rates — updated June 2026
| Bank / Institution | General Rate (p.a.) | Senior Citizen Rate | Min. Deposit | Tenure |
|---|---|---|---|---|
State Bank of India (SBI) |
6.50% | 7.00% | ₹100/month | 1–10 Years |
HDFC Bank |
5.50%–7.00% | 6.00%–7.50% | ₹1,000/month | 6M–10 Years |
ICICI Bank |
6.75% | 7.25% | ₹500/month | 6M–10 Years |
Axis Bank |
7.00% | 7.50% | ₹500/month | 6M–10 Years |
Punjab National Bank |
6.50% | 7.00% | ₹100/month | 6M–10 Years |
Kotak Mahindra Bank |
6.20%–7.10% | 6.70%–7.60% | ₹500/month | 6M–10 Years |
Yes Bank |
7.00%–7.25% | 7.50%–7.75% | ₹1,000/month | 6M–10 Years |
Bank of Baroda |
6.85% | 7.35% | ₹100/month | 1–10 Years |
Canara Bank |
6.75% | 7.25% | ₹100/month | 6M–10 Years |
Central Bank of India |
4.50%–6.75% | 5.00%–7.25% | ₹100/month | 3M–10 Years |
IDFC First Bank |
7.50% | 8.00% | ₹500/month | 6M–10 Years |
Union Bank of India |
6.50% | 7.00% | ₹100/month | 1–10 Years |
Post Office (India Post) |
6.70% | 6.70% (same) | ₹100/month | 5 Years (fixed) |
⚠️ Disclaimer: Rates are indicative and updated as of June 2026. RD interest rates change frequently — always verify current rates directly with your bank before investing. Senior citizen rates are typically 0.50% p.a. higher. Post Office RD rate is government-mandated and reviewed quarterly.
Key Takeaways
What you need to remember about Recurring Deposits
Interest compounded quarterly — better than simple savings accounts
Rate is fixed for full tenure — no risk from future rate cuts
DICGC insured up to ₹5 lakh — completely safe principal
TDS applicable if interest > ₹50,000 p.a. — submit Form 15G to avoid
Senior citizens get extra 0.50% — best rates at small finance banks
Loan available against RD at just 1–2% above RD rate
Premature withdrawal allowed — with 0.5%–1% penalty on interest
Not a tax-saving instrument — no 80C deduction on RD investments
Frequently Asked Questions
Everything you need to know about Recurring Deposits — optimised for AI search
What is a Recurring Deposit (RD)?
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A Recurring Deposit (RD) is a savings scheme offered by banks and India Post where you deposit a fixed amount every month for a pre-defined period. At maturity, you receive the total amount deposited plus quarterly compounded interest. RDs are ideal for building a disciplined savings habit — particularly for salaried individuals, students, and first-time investors. Tenure ranges from 6 months to 10 years and minimum deposits start at just ₹100/month.
How is RD interest calculated?
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RD interest is compounded quarterly using the formula: M = R × [(1+i)ⁿ – 1] / (1 – (1+i)^(-1/3)), where R is monthly deposit, i is the quarterly interest rate (annual rate ÷ 4 ÷ 100), and n is the number of quarters. Each monthly instalment earns compound interest from the date of deposit until maturity — the first instalment earns for the full tenure while the last earns for one month only.
Is RD better than FD?
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It depends on your financial situation. RD is better if you have a regular monthly income and want to save systematically — no need for a large lump sum. FD is better if you already have a lump sum to invest, as FD rates are marginally higher and you can also get tax benefits under Section 80C with a 5-year Tax Saver FD. Both offer guaranteed, fixed returns with DICGC insurance coverage.
Is RD interest taxable in India?
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Yes. Interest earned on RD is fully taxable as per your applicable income tax slab and is reported as "Income from Other Sources" in your ITR. TDS at 10% is deducted if total bank interest (across all deposits) exceeds ₹50,000 per financial year (₹1,00,000 for senior citizens) — revised by Finance Act 2025 effective April 2025. Submit Form 15G (or Form 15H for senior citizens) to your bank if your total income is below the taxable threshold.
Can I withdraw RD before maturity?
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Yes, premature withdrawal of RD is allowed at most banks, but a penalty applies. Typically, banks deduct 0.50% to 1.00% from the applicable interest rate as a premature closure penalty. Interest is paid only for the period the deposit was actually held. Post Office RD allows premature closure only after completing at least 1 year of deposits. Plan your tenure carefully to avoid losing earned interest.
What is the minimum amount required for RD?
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The minimum monthly deposit for RD varies by institution. Public sector banks like SBI, PNB, Canara Bank allow RDs starting at just ₹100/month. Private banks like HDFC Bank and Axis Bank require ₹500–₹1,000/month as minimum. Post Office RD can be started with ₹100/month with no upper limit. Small finance banks may have different minimums — check with the bank directly.
Which bank offers the highest RD interest rate in 2026?
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As of June 2026, IDFC First Bank offers among the highest RD rates for regular customers at 7.50% p.a. (8.00% for senior citizens). Yes Bank offers 7.00%–7.25% p.a. Axis Bank and HDFC Bank offer up to 7.00% p.a. Small Finance Banks and NBFCs may offer even higher rates (up to 8.50%+). However, always verify current rates directly with the bank before investing, as rates change frequently.
Can senior citizens get higher RD interest rates?
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Yes. Almost all banks in India offer senior citizens (aged 60 years and above) an additional 0.50% p.a. over regular RD interest rates. For example, if the regular rate is 7.00%, senior citizens receive 7.50%. Some small finance banks like IDFC First Bank offer senior citizen RD rates up to 8.00% p.a. Post Office RD does not differentiate — the rate is the same for all depositors. This extra benefit makes RD a highly attractive savings instrument for retirees.
Disclaimer: The RD Calculator on this page is for informational and illustrative purposes only. Results are approximate and may vary based on the bank's specific interest calculation method, applicable TDS deductions, processing charges, and any penalties. Interest rates shown in the table are indicative as of June 2026 and are subject to change without notice. Arthzo is not a bank, NBFC, or registered financial advisor. Please verify all rates and terms directly with your bank before making any investment decision. Investments in RDs are subject to the terms and conditions of the respective financial institution.