Recurring Deposit (RD) Calculator

Calculate precise fractional-quarter compounding RD maturity value.

Monthly Investment

₹

₹5,000

Rate of Interest (p.a)

6.5%

Time Period (Years)

3 Years

3Yr

Time Period (Months)

0 Months

0Mo

Note: Most Indian banks mandate a minimum tenure of 6 months for Recurring Deposits. TDS (Tax Deducted at Source) of 10% is applicable if your total RD interest exceeds ₹10,000 in a financial year.

Total Invested Amount

₹1,80,000

Estimated Returns

₹19,122

Total Value (Maturity)

₹1,99,122

Loading interactive chart...

Online Recurring Deposit (RD) Calculator

A Recurring Deposit (RD) is a highly disciplined investment instrument offered by Indian banks and post offices. Unlike a Fixed Deposit (FD) that requires a large lump-sum payment upfront, an RD allows you to invest a fixed amount every month while earning the same high guaranteed interest rates as an FD. It is the perfect financial tool for salaried individuals looking to build a secure corpus systematically over time without exposing their savings to stock market volatility.

Calculating the exact maturity value of an RD is mathematically complex. Every single monthly deposit you make earns interest for a different length of time. For instance, in a 3-year RD, your first ₹5,000 deposit compounds for 36 months, but your final ₹5,000 deposit only compounds for 1 month. Furthermore, Indian banking regulations mandate that RD interest is compounded quarterly, not monthly or annually.

Our Recurring Deposit Calculator utilizes a precision fractional-quarter compounding engine to simulate exactly how banking ledger software calculates your maturity. You simply input your monthly commitment and tenure, and the engine evaluates the compound interest for every individual deposit to give you a penny-perfect estimate.

Tax Implications on Recurring Deposits (TDS Rules)

While an RD provides guaranteed, risk-free returns, it is important to understand the tax rules applied by the Income Tax Department of India:

Fully Taxable: The interest earned on your RD is added to your annual income and taxed according to your applicable income tax slab rate.
TDS Deduction: Under current norms, banks are required to deduct a 10% Tax Deducted at Source (TDS) if your total interest earned on the RD exceeds ₹10,000 in a financial year. If your total income is below the taxable limit, you must submit Form 15G/15H to avoid this deduction.
Form 15G / 15H: If your total annual income falls below the basic exemption limit, you can submit Form 15G (or Form 15H if you are a senior citizen) to your bank at the start of the financial year. This legally instructs the bank not to deduct any TDS from your RD maturity.

Frequently Asked Questions (FAQs)

What is the minimum and maximum tenure for an RD?

In India, the minimum tenure for a bank Recurring Deposit is typically 6 months, and the maximum is 10 years. After the initial 6 months, you can generally choose your tenure in multiples of 3 months (e.g., 9 months, 12 months, 15 months). Post Office RDs generally have a fixed lock-in tenure of 5 years.

Is the interest rate on an RD fixed or fluctuating?

The interest rate is strictly locked in on the day you open the RD. Even if the Reserve Bank of India (RBI) lowers or raises repo rates multiple times during your tenure, your monthly deposits will continue to earn the exact interest rate that was promised to you on day one.

Can I skip a monthly RD installment?

If you fail to make your monthly deposit, banks will typically levy a small penalty fee (often calculated per ₹100 of the missed installment). If you miss consecutive payments (usually 5 to 6 months), the bank reserves the right to automatically close your RD account and refund the accumulated principal and interest to your savings account.

Can I withdraw my RD before the maturity date?

Yes, premature withdrawal is allowed in case of financial emergencies. However, the bank will charge a premature withdrawal penalty (usually a 0.5% to 1% reduction in the applicable interest rate). You will only earn interest for the exact duration the money remained with the bank, not the original promised tenure.

RD vs. SIP: Which is better?

A Systematic Investment Plan (SIP) invests your monthly money into Mutual Funds, which are linked to the stock market. SIPs offer higher potential returns over the long term but carry market risk. An RD, on the other hand, is a debt instrument that offers zero market risk and guaranteed, fixed returns. RDs are ideal for short-term goals (1-3 years) where capital preservation is your absolute highest priority.

Disclaimer: This Recurring Deposit (RD) calculator provides an estimate based on standard quarterly compounding formulas used by major Indian banks. Actual maturity values may vary slightly based on your bank’s exact day-count conventions (e.g., leap years), the specific date of your monthly deposits, and applicable TDS deductions. This tool does not constitute professional financial advice.