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RD Calculator

Enter your monthly deposit amount, interest rate, and tenure to instantly see your RD maturity amount, total interest earned, and TDS deduction. View a month-by-month growth table, compare RD against FD and SIP returns, and look up current RD rates for 20+ Indian banks including SBI, HDFC, ICICI, and Post Office.

RD Calculator

️ TDS at 10% if annual interest from all RDs in a bank exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H if income is below taxable limit.

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Maturity Amount

Month-wise RD Statement

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Month Deposit Interest This Month Cumul. Deposited Balance
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⚖️ RD vs FD vs SIP Comparison

Compare same amount invested via RD, lump-sum FD, and monthly SIP over same tenure.

RD Rates - Major Banks (2025)

Indicative RD rates. Senior citizens get +0.25–0.75% extra. Click any row to use in calculator.

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Bank 6 Mo 1 Yr 2 Yrs 3 Yrs 5 Yrs Senior +

Rates as of 2025. Verify with bank before investing. RD rates are typically same as FD rates for same tenure.

How RD Interest Is Calculated

RD Maturity Formula

M = R × [(1 + i)^n - 1] / (1 - (1+i)^(-1/3)) Standard simplified formula: M = P × n + P × n(n+1)/2 × r/1200 Where: M = Maturity Amount P = Monthly deposit n = Tenure in months r = Annual interest rate Most banks use quarterly compounding: i = r/400 (quarterly rate) For each installment, compound for remaining months

RD Interest - Month by Month

Each monthly installment earns interest for a different number of months: Month 1 deposit earns interest for n months Month 2 deposit earns interest for (n-1) months ... Month n deposit earns interest for 1 month Total Maturity = Sum of all installment amounts compounded for their respective durations Example: ₹5,000/month, 7% p.a., 3 years (36 months) Month 1: ₹5,000 × (1 + 0.07/4)^12 = ₹5,898 Month 2: ₹5,000 × (1 + 0.07/4)^11 = ₹5,861 ... Month 36: ₹5,000 × (1 + 0.07/4)^1 = ₹5,087 Total Maturity ≈ ₹2,02,930

RD vs FD vs SIP - Key Differences

Recurring Deposit (RD): Fixed monthly deposits, guaranteed returns Interest taxable, TDS applicable Best for: Regular savers, low-risk investors Fixed Deposit (FD): Lump sum invested once, guaranteed returns Higher return than RD (full compounding from day 1) Best for: Those with lump sum available SIP (Mutual Fund): Monthly investment in equity/debt funds Market-linked - higher return potential (12-15%) No capital guarantee, but inflation-beating Best for: Long-term wealth creation (5+ years)

Frequently Asked Questions

RD (Recurring Deposit): fixed monthly deposits for a chosen tenure. Ideal for building savings from regular monthly income. FD (Fixed Deposit): single lump-sum deposited upfront. FD earns slightly more than RD at the same interest rate because the entire principal compounds from day 1. RD interest is lower because each monthly instalment only earns interest from the month it is deposited. Both give guaranteed, fixed returns with DICGC insurance up to ₹5L. RD suits regular savers; FD suits lump-sum investors.
Each monthly instalment earns interest for a different duration. Instalment 1 earns interest for the full tenure; the last instalment earns for just 1 month. Indian banks use quarterly compounding. Maturity = Σ [P × (1 + r/4)^(remaining quarters)], summed across all instalments. This is more complex than FD, which is a single compound interest calculation. This calculator uses a precise month-by-month simulation with quarterly compounding to match bank calculations exactly.
Yes - RD interest is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate under both Old and New Tax Regimes. TDS is deducted at 10% (with PAN) or 20% (without PAN) when annual interest from all deposits in one bank exceeds ₹40,000/year (₹50,000 for senior citizens aged 60+). Submit Form 15G (below 60) or 15H (senior citizens) at the start of each financial year to avoid TDS deduction if your total income is below the taxable threshold.
Banks charge a penalty for missed instalments - typically ₹1–2 per ₹100 of deposit per month of default. Some banks provide a grace period of a few days. If too many consecutive instalments are missed (threshold varies by bank), the RD may be closed and proceeds paid at a reduced interest rate. Set up an auto-debit mandate from your savings account to the RD to prevent missing any instalment. Even one missed instalment can affect the effective return.
Yes - premature withdrawal is allowed at most banks with a penalty. Typical penalty: 0.5% to 1% reduction in the applicable interest rate for the period held. For RDs under 12 months, some banks may not pay any interest on premature closure. Post Office RD: premature closure allowed after 3 years with reduced interest. Always verify your bank's specific premature withdrawal terms before opening - check if a penalty applies and what the minimum duration is for any interest to be payable.
Post Office RD (5 years): 6.7% p.a. (current rate). Benefits: sovereign guarantee - no default risk whatsoever. Available at any post office across India. Limitation: only 5-year tenure. Bank RD: flexible tenure (6 months to 10 years), DICGC insurance up to ₹5L per bank, rates from 6.5% (large banks) to 9%+ (small finance banks). Choose Post Office RD for maximum safety and accessibility. Choose small finance banks (Ujjivan, Jana, Equitas, AU) for higher returns with reasonable DICGC-covered risk.
Most banks have no upper limit on individual RD instalments. Monthly deposits can range from ₹100 (some banks) to several lakhs. However, keep DICGC insurance limits in mind: total deposits (savings + FD + RD) at one bank are insured up to ₹5 lakh per depositor. For large amounts, spread across multiple banks. Senior citizens at some banks can open multiple RDs at different rates. Tax implications: there is no 80C benefit for RD (unlike PPF, ELSS, or 5-year tax-saving FD). Interest is fully taxable at your slab rate.
Most banks: minimum 6 months, maximum 10 years. Interest rates are tiered by tenure - longer tenures generally offer higher rates. Post Office RD: only 5-year tenure available. Some banks offer shorter minimum tenures of 3 months for limited deposit amounts. Choose your tenure based on your financial goal: child's school fees in 18 months = 18-month RD. Home renovation fund in 3 years = 36-month RD. Rates are fixed at the time of opening and do not change during the tenure even if rates fall or rise.

RD Key Facts (2025)

Min. monthly deposit₹100
Tenure range6 mo – 10 yrs
CompoundingQuarterly
TDS trigger (general)₹40,000/yr
TDS trigger (senior)₹50,000/yr
TDS rate (with PAN)10%
Premature penalty0.5–1%
DICGC insurance₹5L per bank

Related Calculators

➕ Simple Interest Calculator FD Calculator PPF Calculator SIP Calculator Savings Goal

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RD Calculator - How Recurring Deposits Work and What Affects Your Returns

A Recurring Deposit (RD) is the most practical savings instrument for salaried individuals who want to build a corpus from monthly income rather than a lump sum. It combines the discipline of forced monthly saving with the safety of a bank guarantee and a fixed, predictable return. Understanding exactly how interest is calculated - and why RD returns differ from FD returns at the same rate - helps you plan more accurately.

Quick example - ₹5,000/month for 24 months at 7% p.a.: Total deposited = ₹1,20,000. Maturity amount ≈ ₹1,28,900. Total interest = ₹8,900. Effective annual interest on average balance = ~7%. If the same ₹1,20,000 were put in a 2-year FD at 7%: maturity ≈ ₹1,38,100 - more, because the full amount compounds from day 1.

How RD Interest Is Calculated - The Month-by-Month Method

Each monthly instalment in an RD earns interest for a different number of months. The first instalment earns for the full tenure; the last earns for only one month. Most Indian banks compound interest quarterly:

  • Instalment 1 (deposited in Month 1): compounds for all n months
  • Instalment 2 (Month 2): compounds for n−1 months
  • Instalment n (last month): compounds for 1 month
  • Maturity = Sum of each instalment × (1 + r/4)^(remaining quarters)

This is why RD calculations are mathematically more complex than FD - and why the month-by-month table in this calculator is so useful for seeing exactly how your money grows at each stage.

RD vs FD vs SIP - Which Is Right for You?

RD and FD - Fixed Income

  • RD: Monthly deposits, guaranteed returns, flexible tenure (6 months–10 years). Best for: regular savings from income. No market risk.
  • FD: Lump sum deposit, same or slightly higher rate. Best for: deploying existing savings. Earns more than RD at same rate because full amount compounds from day 1.
  • Both: DICGC insured up to ₹5L. Interest taxable at slab rate. TDS at 10% when interest exceeds threshold.

SIP - Market-Linked

  • Monthly investment in mutual funds. Returns vary - historically 10–14% CAGR for diversified equity funds over 5+ years.
  • Higher long-term return potential than RD - but with market risk (value can fall in the short term).
  • Equity SIP gains taxed at 10% LTCG above ₹1.25L. RD interest taxed at full slab rate.
  • Best for: long-term goals (5+ years). RD for goals under 3 years.

Small Finance Banks - Higher RD Rates with DICGC Protection

While SBI, HDFC, and ICICI offer RD rates of 6.5–7.5%, several small finance banks offer significantly higher rates - 8–9%+ in many cases. These banks are regulated by RBI and covered by DICGC deposit insurance up to ₹5 lakh per depositor per bank.

Notable small finance banks with competitive RD rates (check current rates on their websites): Ujjivan SFB, Jana SFB, Equitas SFB, AU SFB, ESAF SFB, Suryoday SFB. Senior citizens receive an additional 0.25–0.75% over standard rates at most banks.

If you hold multiple RDs across different banks, each bank's deposits are insured separately up to ₹5L. Spreading deposits across 2–3 banks allows coverage of up to ₹10–15L total.

How this calculator works, and where the numbers come from

The RD Calculator applies the standard formula for this calculation to the values you enter and updates the result as you type. The calculation itself happens in your browser, and the page explains the method so you can check any result by hand.

Please note: Projections assume the inputs you enter stay constant; real returns vary. Results are estimates, not financial advice.

Sources and further reading

Learn more

Read our guide: Compound Interest and the Rule of 72, Checked Against the Math

Last reviewed: by the CalcQube Editorial Team. See our editorial policy for how we build and check calculators, or report an error.