📅 RD Calculator
Calculate Recurring Deposit maturity value with quarterly compounding — as per Indian bank norms.
Frequently Asked Questions
How do I use the RD Calculator?
Enter your Monthly Deposit, Annual Interest Rate and Tenure in months, then click "Calculate" to see your Maturity Amount, Total Deposited, Interest Earned and tenure, along with a growth chart and a quarter-by-quarter breakdown table.
How is RD interest calculated?
Each monthly deposit earns interest from the month it is deposited until maturity. This calculator compounds that interest monthly — the same convention used by most major Indian banks' RD calculators (e.g. SBI, HDFC, ICICI).
Why do different bank RD calculators show slightly different interest amounts?
There's no single RBI-mandated formula for RD interest. Most retail banks compound monthly (used here), while some calculators — and the post office RD scheme — use quarterly compounding. The difference is usually small but can be a few hundred rupees on larger deposits or longer tenures. Always confirm the exact method with your bank.
Is RD interest taxable?
Yes. Interest earned on a Recurring Deposit is fully taxable as per your income tax slab, similar to Fixed Deposit interest, and banks deduct TDS if the interest exceeds the prescribed threshold in a financial year. Tax rules can change — confirm current thresholds with your bank or a tax advisor.
Can I withdraw my RD before maturity?
Most banks allow premature withdrawal of an RD, usually with a penalty — either a reduced interest rate or a percentage deduction on the interest earned. Terms vary by bank.
Should I choose an RD or a SIP for my monthly savings?
An RD offers a fixed, guaranteed interest rate set at account opening, making returns predictable and safe — ideal for short-term goals. A SIP into mutual funds offers potentially higher but market-linked, fluctuating returns with no guarantee. Use our SIP Calculator to compare a similar monthly contribution at an assumed market return.
What happens if I miss a monthly RD installment?
Banks typically charge a small penalty fee for each missed or delayed installment, and repeated defaults can lead to the account being closed before maturity at a lower applicable rate. This calculator assumes every installment is paid on time for the full tenure, so a real account with missed payments will earn slightly less than the figure shown here.