RD Calculator
An RD calculator is a free online tool that computes the maturity value of your recurring deposit — showing exactly how much your monthly savings will grow over time.
Year-wise Growth
| Year | Deposited | Value |
|---|---|---|
| Year 1 | ₹60,000 | ₹20,890 |
| Year 2 | ₹1,20,000 | ₹43,282 |
| Year 3 | ₹1,80,000 | ₹67,283 |
| Year 4 | ₹2,40,000 | ₹93,008 |
| Year 5 | ₹3,00,000 | ₹1,20,582 |
RD interest is taxable per your slab. Rates vary by bank.
How to use RD Calculator
- Enter monthly deposit — Type the amount you'll deposit each month.
- Set interest rate — Enter the annual RD rate (typically 6.5-7.5% in India).
- Choose tenure — Select the duration — usually 12 to 120 months.
- See maturity — View your total deposits, interest earned, and final amount.
Key features
- Monthly deposit support
- Quarterly compounding (standard)
- Total investment vs returns
- Year-wise growth table
- Senior citizen rate option
- Instant calculation
What is a Recurring Deposit?
A recurring deposit (RD) is a savings instrument where you deposit a fixed amount every month for a fixed tenure at a fixed interest rate. It combines the safety of a fixed deposit with the discipline of monthly saving. RDs are ideal for salaried individuals and anyone building a savings habit. At maturity, you receive your total deposits plus compounded interest — typically 6.5-7.5% in India.
RD vs FD — Which Should You Choose?
FD requires a lump sum upfront — good if you have surplus cash. RD accepts small monthly deposits — good for regular saving. FD rates are usually 0.25-0.5% higher than RD rates. If you can save ₹10,000+ per month consistently, an RD over 3-5 years builds substantial corpus. If you have ₹1 lakh+ available now, FD gets slightly better returns.
How RD Interest Compounds
RD interest compounds quarterly in most Indian banks. Each monthly deposit starts earning from the day it's credited. The first deposit earns interest for the full tenure, the second for one month less, and so on. This is why longer RDs give much better returns — the compounding has more time to work. A 5-year RD at 7% returns about 18% more than total deposits.
RD for Goal-Based Saving
RDs work best for specific short-term goals (1-5 years): a wedding fund, down payment on a car, education fees, or an emergency fund top-up. For each goal, set the RD tenure to match the goal date. For long-term goals (10+ years), mutual funds usually beat RDs — but RDs give guaranteed returns with zero market risk. Many investors split between both.
Pro tips
- Set up auto-debit to never miss a monthly deposit
- Compare RD rates across banks before committing
- For 3+ year RDs, consider post office schemes too
- RD interest is taxable — plan your slab accordingly
Common use cases
- Building a monthly savings habit
- Saving for a specific short-term goal
- Creating an emergency fund
- Education fee planning
- Wedding fund accumulation
Frequently asked questions
How is RD interest calculated?+
RD uses quarterly compounding. Each monthly deposit earns interest from its deposit date to maturity.
What's the current RD rate in India?+
Typically 6.5-7.5% for regular citizens, up to 8% for senior citizens, depending on the bank.
Is RD better than FD?+
RD is better for regular savers (builds discipline). FD is better for lump sum investments (higher returns).
Can I miss a monthly deposit?+
Most banks charge a penalty for missed deposits. Some allow skipping after minimum tenure.
Is RD interest taxable?+
Yes, RD interest is taxable as per your income slab. TDS applies above ₹40,000 annual interest.
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