RD Calculator — Recurring
Deposit Returns Instantly
Calculate your exact maturity amount, total interest earned, and month-by-month growth for any recurring deposit in seconds.
🔢 Enter RD Details
Your Results
Detailed month-by-month growth of your Recurring Deposit
| Month | Deposit (₹) | Cumulative Invested (₹) | Interest Earned (₹) | Balance (₹) | Growth % |
|---|
| Bank / Institution | General Rate (p.a.) | Senior Citizen Rate | Min Deposit | Best Tenure | Rate Bar |
|---|
💡 What is an RD?
A Recurring Deposit (RD) is a disciplined savings product offered by banks and post offices in India. You commit to depositing a fixed sum every month for a predetermined period — ranging from 6 months to 10 years.
At the end of the tenure (maturity), you receive your total deposited amount plus compound interest calculated quarterly. It's the ideal tool for those who want the benefits of a Fixed Deposit but prefer to invest in smaller monthly instalments rather than one lump sum.
RDs are one of the safest investment options available — deposits up to ₹5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
📐 RD Interest Formula
Indian banks calculate RD interest using the compound interest formula, compounded quarterly:
The quarterly compounding means your interest earns interest every 3 months, accelerating your wealth even on small monthly deposits.
Post Office RD follows the same quarterly compounding convention, making it easy to compare across institutions.
✅ Benefits of Recurring Deposits
- Guaranteed returns — interest rate fixed at account opening
- Low entry barrier — start from ₹10/month (Post Office) or ₹100/month (SBI)
- Flexible tenures — 6 months to 10 years across most banks
- Builds financial discipline — automatic monthly debit from savings account
- Loan facility — borrow up to 90% of RD balance as collateral
- DICGC insured — deposits protected up to ₹5 lakh per bank
- Premature withdrawal — allowed (with small penalty) for emergencies
- Online access — open and manage via net banking / mobile apps
⚠️ Tax on RD Interest
RD interest is fully taxable as "Income from Other Sources" at your applicable income tax slab rate. Key tax rules:
- TDS @ 10% is deducted if total interest from a bank exceeds ₹40,000/year (₹50,000 for senior citizens)
- Submit Form 15G (below 60 years) or Form 15H (senior citizens) to avoid TDS if your income is below the taxable threshold
- Interest must be declared in your ITR every year on accrual basis, not just at maturity
- Unlike PPF or SSY, RD does not qualify for Section 80C deduction
Use Arthzo's Income Tax Calculator to estimate your total tax liability including RD interest.
RD vs. Other Savings Options
| Feature | RD | FD | PPF | SIP (MF) |
|---|---|---|---|---|
| Investment Style | Monthly | Lump Sum | Flexible | Monthly |
| Current Rate (2026) | 6.5–7.5% | 6.5–7.5% | 7.1% (fixed) | 10–14%* |
| Returns Type | Guaranteed | Guaranteed | Guaranteed | Market-linked |
| Tax on Returns | Taxable | Taxable | EEE (Tax-free) | LTCG 12.5%* |
| 80C Deduction | No | 5yr Tax Saver FD | Yes (₹1.5L) | ELSS only |
| Min Tenure | 6 months | 7 days | 15 years | No lock-in |
| Premature Exit | Yes (penalty) | Yes (penalty) | Partial only | Anytime |
| Risk Level | Zero | Zero | Zero | Market Risk |
| Best For | Short-term goals | Lump sum savings | Long-term wealth | Long-term growth |
* SIP returns are estimated based on historical averages. Mutual fund investments are subject to market risk. LTCG tax applicable above ₹1.25L gains.
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