RD Calculator
See what a monthly recurring deposit adds up to. Use your bank's rate, and the result updates instantly.
Deposits Interest
This is an illustration for a bank RD with quarterly compounding, before tax and TDS, assuming every instalment is paid on time. Your bank's figure can differ slightly depending on its day count and instalment dates.
How this is calculated
A recurring deposit is a string of small deposits, one each month. Every instalment earns interest, compounded quarterly, only for the months it stays in the account. The calculator grows each instalment for its own time and adds them up, which matches the formula Indian banks use for RD maturity.
A worked example
Illustration: 5,000 rupees a month for 5 years (60 months) at 7% a year.
- You put in ₹3,00,000 in total.
- It matures at about ₹3,59,664, so about ₹59,664 is interest.
- A one-year RD of 2,000 rupees a month at 7% matures at about ₹24,924.
An RD suits a fixed goal with a date, like a fee or a trip next year. For goals many years away, compare it with a SIP in RD vs SIP.
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Questions people ask
How much will my RD give at maturity (RD me kitna paisa milega)?
Enter your monthly instalment, the bank's rate and the tenure above. Each instalment earns interest only for the months it stays in the account, so the first one earns the most and the last one the least. In the illustration on this page, 5,000 rupees a month for 5 years at 7% matures at about ₹3,59,664.
How do banks calculate RD interest?
Most banks compound RD interest every quarter. Each monthly instalment grows at the quarterly rate for the time it stays invested, and the maturity amount is the sum of all of them. This calculator uses that method. The post office RD has its own fixed rate and a 5-year term, so check India Post for its current terms.
What if I miss an RD instalment?
Most banks charge a small penalty on a late instalment, and after several missed months the bank may close the account and pay out what has built up. The rules differ by bank, so check yours before you start.
Is RD interest taxed?
Yes. RD interest is taxed at your income tax slab, and banks cut TDS on it once your total interest from that bank crosses the yearly limit, the same as for an FD. The figures here are before tax.