RD Calculator
Calculate the maturity value of your monthly Recurring Deposit (RD) based on monthly instalment, interest rate, and tenure.
Results
| Maturity Amount | |
|---|---|
| Total Interest Earned | |
| Total Amount Invested |
What is a Recurring Deposit (RD)?
A Recurring Deposit lets you invest a fixed amount every month for a chosen tenure and earn compound interest on it, similar to an FD but built through regular monthly contributions instead of a single lump sum.
How RD interest is calculated
Interest on each monthly instalment is compounded quarterly, using the same principle as a Fixed Deposit but applied separately to every instalment based on how long it remains invested until maturity.
How to use this tool
- Enter the amount you plan to deposit every month.
- Enter the annual interest rate offered by your bank or post office.
- Enter the total tenure in months and click Calculate.
Frequently Asked Questions
Is RD interest taxable?
Yes, interest earned on a Recurring Deposit is fully taxable as per your income tax slab, and TDS applies if total interest exceeds the prescribed annual threshold.
What is the minimum tenure for an RD?
Most banks offer RD tenures starting from 6 months up to 10 years, though minimum tenure can vary by bank.
What happens if I miss a monthly RD instalment?
Banks typically charge a small penalty for missed or delayed instalments, and repeated defaults can lead to premature closure of the RD account.
Is RD better than SIP for building savings?
RDs offer fixed, guaranteed returns suited for short-term, low-risk goals, while SIPs in mutual funds carry market risk but have historically offered higher long-term returns.
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