RD Calculator
Enter your monthly RD amount, interest rate and tenure to see the maturity value and interest earned.
Runs entirely in your browser — your numbers never leave this page.
How it works
A recurring deposit (RD) is the monthly cousin of the FD: you deposit a fixed sum every month, and each instalment compounds quarterly for its remaining tenure:
Maturity = Σ P × (1 + r/4)quarters remaining
Early instalments compound the longest, so starting the RD sooner matters more than the later deposits.
- Same rates as FDs at most banks, including the senior-citizen bonus (~+0.50%).
- Tax: RD interest is fully taxable at your slab — no special treatment. TDS applies above Rs 50,000/year interest (Rs 1,00,000 for seniors).
- Missing an instalment usually draws a small penalty and can break the compounding chain — set up auto-debit.
- RD vs SIP: RDs give guaranteed ~7% with zero risk; SIPs target ~12% with market risk. RDs suit goals under 3 years where you can't afford volatility.
- Premature closure typically costs 0.5–1% off the contracted rate.
Frequently asked questions
How is RD maturity calculated?
Each monthly deposit compounds quarterly for its remaining tenure. Rs 5,000/month at 7% for 5 years matures to about Rs 3,57,000 — Rs 57,000 of it interest.
Is RD interest taxable?
Yes, fully taxable at your income-tax slab rate, exactly like FD interest. There is no tax advantage to RDs.
RD vs FD — which is better?
Same rates, different cash flow: FD invests a lump sum once, RD builds it monthly. If you have the lump sum, FD earns slightly more (the whole amount compounds from day one).
What happens if I miss an RD instalment?
Banks charge a small penalty per missed instalment, and some treat repeated misses as a default that closes the RD. Auto-debit avoids this entirely.
Can I close an RD early?
Yes, but you typically lose 0.5–1% off the interest rate, and the compounding benefit shrinks. Only break it for real needs.
Do senior citizens get extra on RD?
Yes — the same ~0.50% extra that applies to FDs at most banks. Tick the box in this calculator to include it.
RD vs SIP for 3 years?
For goals under 3 years, RDs usually win on risk-adjusted terms — a market dip just before you need the money hurts SIPs badly. Beyond 5 years, SIPs' higher expected returns dominate.
Is there a maximum RD amount?
No regulatory maximum — banks accept large monthly RDs. But at high amounts, compare with debt mutual funds, which may be more tax-efficient.
Can I open an RD online?
Yes — every major bank and the post office offer online RD opening, auto-debit, and premature-closure requests through netbanking.
Are RDs insured?
Yes, bank RDs are covered by DICGC insurance up to Rs 5 lakh per depositor per bank, same as FDs.