RD Calculator
Calculate recurring deposit maturity amount. Enter monthly deposit, interest rate, and tenure to see returns.
What is RD Calculator?
An RD (Recurring Deposit) calculator computes the maturity value of a recurring deposit where you deposit a fixed amount monthly for a predetermined period. RDs are offered by Indian banks as a disciplined savings tool — you commit to depositing a fixed amount every month (like a SIP but with guaranteed returns). Interest is compounded quarterly at a fixed rate. This tool shows your maturity amount, total interest earned, and effective yield for comparing RD offers across banks.
How It Works
Enter the monthly deposit amount, annual interest rate, tenure in months, and compounding frequency (quarterly is standard). The tool uses the RD maturity formula which accounts for each monthly installment earning interest for its remaining tenure. Since the first month's deposit earns interest for the full period while the last month's deposit earns interest for just one quarter, the calculation requires summing the compound interest earned by each individual deposit. The result shows total deposited amount, interest earned, and final maturity value.
Common Use Cases
- •Comparing RD rates across banks to choose the best recurring deposit offer
- •Planning monthly savings amounts needed to accumulate a target sum by a specific date
- •Understanding the difference between RD and FD returns for the same total investment amount
- •Setting up goal-based savings with a clear maturity timeline and expected value
- •Calculating post-tax RD returns after TDS deduction for accurate net income estimation
- •Evaluating whether RD or SIP (mutual fund) better suits conservative savings goals
Frequently Asked Questions
How does RD differ from FD?▼
In RD you deposit a fixed amount monthly, while FD is a one-time lump sum deposit. Both earn compound interest.
How is recurring deposit interest calculated?▼
Each monthly instalment earns interest only for the time it remains on deposit, so the first payment earns for the full term and the last for a single month. The maturity value is the sum of each instalment compounded over its own period, which is why an RD returns less than a lump sum FD of the same total.
What happens if I miss a monthly instalment?▼
Banks generally charge a small penalty per missed payment, and repeated defaults can lead to the account being closed with interest paid at a reduced rate. Set up a standing instruction to avoid it.
Which gives a better return, an RD or an FD?▼
For the same total sum and rate, an FD returns more, because the whole amount earns interest for the entire term. An RD is not competing on that basis — it exists for people saving out of monthly income who do not have a lump sum to deposit.
Is RD interest taxable?▼
Yes, at your income slab rate, and TDS applies above the same annual interest threshold that governs fixed deposits. There is no special exemption for recurring deposits.
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