Calculate the maturity value of your Recurring Deposit (RD). Plan your monthly savings with precise interest calculations.
Calculate maturity amount for Recurring Deposits.
The Recurring Deposit (RD) Calculator is your essential tool for planning systematic monthly savings with guaranteed returns. A Recurring Deposit is a popular savings instrument offered by banks and post offices in India, allowing you to deposit a fixed amount every month and earn compound interest over a chosen tenure ranging from 6 months to 10 years.
RDs combine the discipline of regular savings with the safety of fixed deposits. Unlike market-linked investments, RD returns are guaranteed and protected by deposit insurance (up to ₹5 lakh per depositor per bank under DICGC). This makes RDs ideal for conservative investors, senior citizens seeking regular savings options, and anyone building an emergency fund or saving for short-term goals like vacations, education, or down payments.
With interest rates ranging from 5.5% to 7.5% depending on the bank and tenure, RDs offer competitive returns while maintaining complete capital safety. Post office RDs backed by the Government of India provide additional security for risk-averse savers seeking guaranteed growth on their monthly contributions.
P = Monthly deposit amount
r = Annual interest rate (decimal)
n = Compounding frequency (4 for quarterly)
t = Tenure in years
Banks typically compound RD interest quarterly. Each monthly deposit earns interest for its remaining tenure—first deposit earns maximum interest, last deposit earns minimum.
Compare these three popular investment options based on your financial goals and risk tolerance:
| Feature | RD (Recurring Deposit) | FD (Fixed Deposit) | SIP (Mutual Fund) |
|---|---|---|---|
| Investment Type | Monthly fixed amount | One-time lump sum | Monthly market investment |
| Returns | 5.5% - 7.5% (guaranteed) | 6% - 7.5% (guaranteed) | 10-15% (market-linked) |
| Risk Level | Zero (capital protected) | Zero (capital protected) | Moderate to High |
| Minimum Amount | ₹100 - ₹500/month | ₹1,000 - ₹10,000 | ₹500/month |
| Liquidity | Premature withdrawal with penalty | Premature withdrawal with penalty | Flexible redemption |
| Best For | Monthly savers, short-term goals | Lump sum parking, fixed returns | Long-term wealth creation |
Several factors determine the interest rate you receive on your Recurring Deposit:
❌ Premature Withdrawal: Breaking an RD before maturity incurs 1-2% penalty on interest earned. If liquidity is a concern, open multiple smaller RDs instead of one large one.
❌ Ignoring TDS: Banks deduct 10% TDS if annual RD interest exceeds ₹40,000 (₹50,000 for seniors). Submit Form 15G/15H if your income is below taxable limit to avoid TDS.
❌ Missing Installments: Defaulting on monthly payments may result in penalty charges or account closure. Set up auto-debit from your savings account.
❌ Not Comparing Rates: RD rates vary significantly across banks. Compare rates before opening—even 0.5% difference adds up over long tenures.
❌ Choosing Wrong Tenure: Match RD tenure to your goal. Avoid locking funds longer than needed; avoid short tenures that offer lower rates.
| Bank Type | 1 Year Rate | 3 Year Rate | 5 Year Rate | Senior Citizen Bonus |
|---|---|---|---|---|
| Public Sector Banks (SBI, PNB) | 6.0% - 6.5% | 6.25% - 6.75% | 6.0% - 6.5% | +0.50% |
| Private Banks (HDFC, ICICI) | 6.5% - 7.0% | 7.0% - 7.25% | 6.75% - 7.0% | +0.50% |
| Small Finance Banks | 7.0% - 7.75% | 7.5% - 8.0% | 7.25% - 7.75% | +0.50% |
| Post Office RD | 6.7% | 6.7% | 6.7% | No bonus |
Rates as of January 2026. Actual rates may vary; check with your bank for current rates.
Sources & Methodology: RD calculations use the standard quarterly compounding formula recognized by RBI-regulated banks. Interest rates referenced from SBI, HDFC Bank, and India Post published rates (January 2026). DICGC deposit insurance per the Deposit Insurance and Credit Guarantee Corporation Act. TDS thresholds per Income Tax Act Section 194A. Always verify current rates with your bank before opening an RD account. Calculator updated January 2026.
A Recurring Deposit (RD) is a term deposit where you invest a fixed amount monthly for a predetermined tenure (6 months to 10 years). Banks compound interest quarterly on each deposit. Your first installment earns interest for the full tenure, while subsequent deposits earn for shorter periods. At maturity, you receive principal + accumulated compound interest. RDs are ideal for salaried individuals building savings discipline—minimum deposit starts at ₹100-500/month depending on the bank.
RD uses quarterly compounding with the formula: Maturity = P × [(1 + r/n)^(n×t) - 1] / [1 - (1 + r/n)^(-1/3)], where P = monthly deposit, r = annual rate, n = compounding frequency (4 for quarterly), t = tenure in years. Example: ₹5,000/month at 7% for 3 years yields approximately ₹2,00,550 maturity (₹1,80,000 principal + ₹20,550 interest). Each monthly deposit compounds separately based on remaining tenure.
FD yields higher effective returns (same rate) because lump sum earns interest from day one—₹1,00,000 FD at 7% for 3 years = ₹1,22,504. RD suits those without lump sum: ₹2,778/month for 36 months (same ₹1,00,000 total) yields ~₹1,11,200. Choose FD for existing corpus maximization; choose RD for systematic monthly savings habit. SIP offers potentially higher but volatile returns (10-12% CAGR historically) for risk-tolerant investors.