Recurring Deposit Calculator

Estimate the maturity amount of your Recurring Deposit (RD). Find out how small monthly contributions compound over time into a large guaranteed corpus.

Quarterly Compounding Guaranteed Returns Export Projections

Investment Details

₹
₹100₹1L+
130

Return Rates

%
1%15%

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Expected Returns

RD Scheme Guidelines

Tenure Limits

  • Min: 6 Months.
  • Max: 10 Years (Post Office is 5 Years).
  • Compounding: Usually Quarterly.

Deposits

  • Monthly deposit stays fixed for the tenure.
  • Missed payments may attract nominal penalty.

Taxation (TDS)

  • Interest is fully taxable as per slab.
  • TDS applies if interest exceeds ₹40k/yr.
  • TDS rate is 10% (20% without PAN).

Withdrawal Rules

  • Premature closure allowed with penalty.
  • Usually 1% interest rate reduction.
  • Partial withdrawal depends on bank.

Understanding Recurring Deposits (RD)

Recurring Deposits are one of the most popular low-risk saving options offered by banks and post offices in India, designed to help you build a savings discipline.

Disciplined Savings

By depositing a fixed amount every month for a pre-determined tenure, RDs help build a corpus over time. It's perfect for salaried individuals looking to save systematically.

Quarterly Compounding

In most Indian banks, the interest on an RD account is compounded on a quarterly basis. The interest structure ensures your monthly savings fetch compound interest over time.

Guaranteed Returns

Unlike mutual funds or stocks, an RD offers a fixed and guaranteed interest rate that is locked in at the time of opening the account, irrespective of market fluctuations.

Taxability (TDS)

The interest earned on an RD is fully taxable as per your income tax slab. Banks will deduct TDS at 10% if the interest earned across all your deposits exceeds ₹40,000 (₹50,000 for senior citizens) in a year.

Capital Protection

Your principal amount is protected and insured up to ₹5 Lakhs by the DICGC, making RDs one of the safest investment avenues available.

Loan Facility

Most banks allow you to take a loan or an overdraft against your RD balance, typically up to 80-90% of the value, providing liquidity in emergencies.

Frequently Asked Questions

Clear all doubts regarding RD calculation, interest structures, and premature withdrawals.

How is RD interest calculated in India?
Bank RDs in India usually calculate interest on a quarterly compounding basis. This means the interest earned over a 3-month period is added to the principal for the calculation of interest in the next quarter. The standard formula used is maturity value = P × ((1 + r/n)^(nt) - 1) / (1 - (1+r/n)^(-1/3)), where P is regular deposit, r is annual rate percentage, n is compounding frequency.
Can I withdraw my RD before maturity?
Yes, you can prematurely withdraw your RD, but banks usually levy a penalty for it. The penalty often ranges from 0.5% to 1% reduction in the interest rate applicable for the period the deposit was actually held.
What is the minimum tenure for a Recurring Deposit?
The minimum tenure for a Recurring Deposit is typically 6 months for most banks in India, and it can go up to a maximum of 10 years (120 months).
Do I get Section 80C tax benefits on RD?
Normally, standard Bank RDs do NOT offer tax deductions under Section 80C. However, the Post Office RD (which has a 5-year fixed tenure) sometimes qualifies, though the interest earned remains fully taxable.
Who can open a Recurring Deposit account?
Any resident individual (including minors under guardianship), Hindu Undivided Families (HUF), and in some cases, NRIs through NRE/NRO accounts can open an RD.