RD Calculator

Calculate the maturity amount of your Recurring Deposit (RD). See total invested, estimated returns, and a year-by-year growth breakdown. Uses standard quarterly compounding as mandated by Indian banks.

RD Details
₹500₹1L
1%15%
1 yr15 yrs
Year-by-Year Breakdown
Year Invested Returns Total Value

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a savings feature offered by banks and post offices that helps people deposit a fixed amount every month and earn interest at applicable rates.

RD Maturity Concept
M = Σ P × (1 + r/4)^(t_k / 3)

Where each monthly deposit P compounds independently until maturity, based on the annual interest rate r and compounded quarterly.

Why Invest in RD?

  • Discipline: Promotes regular saving habits with a fixed monthly commitment.
  • Lower Market Exposure: Recurring deposits generally do not track equity-market prices, but the applicable rate, terms and deposit protections depend on the institution and product.
  • Small Commitments: Start with as little as ₹500 or ₹1000 per month.
  • Flexibility: Tenures range from 6 months to 10 years, aligning with short and medium-term goals.
Expert Insights

Frequently Asked Questions

What to know before you start a Recurring Deposit.

In an FD, you deposit a lump sum once and it compounds for the full tenure. In an RD, you deposit a fixed amount every month, and each individual deposit only earns interest for the months remaining until maturity. So even at the same interest rate, total interest earned on an RD is lower than on an equivalent lump-sum FD, because your money isn't all invested from day one.
Most Indian banks compound RD interest quarterly. Each monthly instalment is treated as its own mini fixed deposit that compounds from the date it's paid in until the RD's maturity date — so the first instalment earns interest for the full tenure, while the last instalment earns interest for only one compounding period.
Banks typically charge a small penalty (often ₹1–₹15 per ₹100 of the instalment, per month delayed) for missed or late RD payments, and some accounts can be closed after a set number of consecutive defaults. Rules vary by bank, so this calculator assumes every instalment is paid on time.
Yes. RD interest is fully taxable as income at your applicable slab rate, and banks deduct TDS once total interest across your deposits with that bank crosses the threshold set by the Income Tax Department in a financial year. This calculator shows the pre-tax maturity value.
Yes, most banks allow premature closure, but you'll usually earn a lower interest rate (as if you'd chosen a shorter tenure from the start) plus a small penalty. Terms differ by bank, so check your specific RD's premature-withdrawal clause before closing early.
FD CalculatorCalculate Fixed Deposit maturity amount and interest earned with high accuracy. Compound Interest CalculatorVisualise how investments grow over time with compound interest. SIP CalculatorCalculate SIP returns and wealth creation for mutual fund investments. EMI CalculatorCalculate monthly loan EMI with amortization schedule and charts.