RD Calculator (Recurring Deposit)
Calculate Recurring Deposit maturity for monthly savings plan. Indian RD with quarterly compounding.
Maturity Amount
What is RD?
Recurring Deposit (RD) is a savings plan where you deposit a fixed amount monthly for a chosen tenure (6 months to 10 years). Earns FD-like interest, compounded quarterly. Perfect for: salary-based monthly savings, building emergency fund, achieving short-term goals (2-3 years), conservative savings habit. Unlike SIP (market-linked), RD is fully guaranteed by the bank.
How to use
- Set monthly deposit — Fixed amount auto-debited monthly
- Confirm interest rate — Typically 5.5-7% (similar to FD)
- Choose tenure — 6 months to 10 years
- View maturity — Total invested + interest earned
Formula
RD Maturity Formula:
M = R × [((1+i)^n – 1) / (1 – (1+i)^(-1/3))]
Where R = monthly deposit, i = quarterly rate, n = quarters. Approximation: each monthly deposit earns interest from deposit date to maturity.
Tips
- Salary-based monthly savings — set up standing instruction
- TDS applies if annual interest > ₹40,000
- Premature closure: typically 0.5-1% penalty
- Post Office RD: 5-year tenure, fixed 6.7% interest
- Compare with SIP (mutual fund) for higher long-term returns
FAQs
RD vs SIP?
RD: debt instrument, fixed return 5-7%, fully safe. SIP: market-linked mutual fund, variable returns 12-15% potential, higher risk. For long-term wealth building, SIP usually wins; for guaranteed savings, RD is better.
Can I miss a monthly deposit?
Most banks charge late fee (₹1-5 per ₹100 per month). Repeated misses may invalidate the RD. Use auto-debit to avoid.
Can I change the monthly amount?
Usually not — RD requires fixed monthly amount. To change, close current RD (with penalty) and open new one.
Is RD interest taxable?
Yes — treated as income from other sources, taxed at your slab rate. Bank may deduct TDS.