RD Calculator
Calculate the maturity amount and interest earned on your Recurring Deposit with month-wise accumulation and year-wise breakdown charts.
Enter deposit details and click
Calculate Maturity
What is an RD Calculator?
An RD (Recurring Deposit) calculator computes the maturity amount you receive when your RD matures. RD is a banking product where you deposit a fixed amount every month and earn guaranteed interest at a predetermined rate.
RD Calculation Method
Each monthly installment earns compound interest from its deposit date to the maturity date. The total maturity amount is the sum of all installments plus the interest earned by each:
Where R = monthly deposit, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = remaining months for each installment.
Key Features of RD
- Guaranteed Returns: Interest rate is fixed at the time of opening
- Flexible Tenure: Typically 6 months to 10 years
- Premature Withdrawal: Allowed with a penalty (usually 1%)
- TDS: Applicable if interest exceeds ₹40,000 per year (₹50,000 for seniors)
RD vs FD vs SIP
- RD: Fixed monthly deposits, guaranteed returns, ideal for disciplined savings
- FD: One-time deposit, fixed returns, better rates for larger amounts
- SIP: Monthly investment in mutual funds, market-linked, potentially higher returns with risk
RD Calculation Example
If you open an RD with ₹5,000 per month at 7% interest rate for 24 months:
- Total Deposits: ₹1,20,000 (₹5,000 × 24 months)
- Interest Earned: ₹9,107 (approx)
- Maturity Amount: ₹1,29,107
Senior citizens generally get an additional 0.25–0.50% interest rate on RDs. The effective rate makes a meaningful difference over longer tenures.
Frequently Asked Questions
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A Recurring Deposit (RD) is a savings scheme offered by banks where you deposit a fixed amount every month for a pre-determined period. At maturity, you receive the total deposits plus the interest earned.
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Most banks in India offer RD with a minimum monthly deposit of ₹100–₹500. Post Office RDs start at ₹100 per month with no upper limit.
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Yes. Interest earned on RD is fully taxable as per your income tax slab. TDS at 10% is deducted if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if income is below taxable limit.
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Yes, premature closure is allowed but attracts a penalty of 1–2% on the interest rate. You will earn interest at the rate applicable for the period the deposit was held, minus the penalty.
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As of 2025-26, major banks offer RD interest rates between 6.5–7.5% for general customers and 7–8% for senior citizens. Post Office RD offers 6.7% per annum compounded quarterly.
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Yes. Most banks offer loans up to 90% of the RD value at an interest rate typically 1–2% above the RD rate. This is useful when you need funds but don't want to break your RD.