RD Calculator

Calculate recurring deposit maturity with monthly deposits and quarterly compounding.

RD Details

Monthly Deposit

₹

₹500₹10,00,000

Interest Rate (p.a.)

1%15%

Time Period

months

6 months120 months

Compounding Frequency

Most Indian banks compound RD interest quarterly

Adjust for Inflation

Show value in today's money

Maturity Amount

₹62,671

Effective annual rate: 7.19%

Total Deposited₹60,000

Total Interest₹2,671

Quarterly Breakdown

Month	Invested	Interest	Total Value
3	₹15,000	₹263	₹15,263
6	₹30,000	₹792	₹30,792
9	₹45,000	₹1,593	₹46,593
12	₹60,000	₹2,671	₹62,671

What is a Recurring Deposit?

A Recurring Deposit (RD) is a type of term deposit offered by banks where you deposit a fixed amount every month for a predetermined period. It's an excellent savings tool for those who want to build a corpus through regular small deposits rather than a lump sum investment.

Key Features of RD

Fixed Monthly Deposits: You commit to depositing a fixed amount every month for the tenure.
Guaranteed Returns: Interest rates are fixed at the time of opening, providing predictable returns.
Flexible Tenure: Typically ranges from 6 months to 10 years.
Low Minimum Amount: Start with as low as ₹500/month at most banks.

RD vs FD vs SIP

RD vs FD: Both offer guaranteed returns, but RD allows monthly deposits while FD requires a lump sum. RD is ideal for salaried individuals building savings gradually.

RD vs SIP: SIPs invest in mutual funds with market-linked returns (higher risk, potentially higher returns). RD offers fixed, guaranteed returns but typically lower than equity SIPs over the long term.

Tax on RD Interest

Interest earned on RD is fully taxable as "Income from Other Sources" at your applicable tax slab rate. TDS is deducted at 10% if total interest from RD and FD combined exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).

How RD Calculator Works

This calculator estimates your RD maturity amount based on your monthly deposit, interest rate, tenure, and compounding frequency. Most Indian banks compound RD interest quarterly.

Calculation Method:

Since deposits are made monthly but interest is compounded quarterly, the calculator processes each month iteratively, adding deposits and compounding interest at quarter ends for accurate results.

The effective annual rate shown accounts for compounding frequency. A 7% nominal rate compounded quarterly yields approximately 7.19% effective annual return.

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What is a Recurring Deposit?

Key Features of RD

Fixed Monthly Deposits: You commit to depositing a fixed amount every month for the tenure.
Guaranteed Returns: Interest rates are fixed at the time of opening, providing predictable returns.
Flexible Tenure: Typically ranges from 6 months to 10 years.
Low Minimum Amount: Start with as low as ₹500/month at most banks.

RD vs FD vs SIP

RD vs FD: Both offer guaranteed returns, but RD allows monthly deposits while FD requires a lump sum. RD is ideal for salaried individuals building savings gradually.

RD Calculator

Quarterly Breakdown

What is a Recurring Deposit?

Key Features of RD

RD vs FD vs SIP

Tax on RD Interest

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