RD Calculator

Calculate maturity amount of your Recurring Deposit. Indian banks compound quarterly.

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Enter your RD details above to calculate maturity amount

How RD maturity is calculated

Indian banks use quarterly compounding for RDs. Each monthly instalment earns interest from its deposit date to maturity.

RD Maturity Formula (per instalment)
A = R × (1 + i)^n
Where R = monthly deposit, i = quarterly rate (annual rate / 4 / 100), n = number of quarters remaining for that instalment. Total maturity = sum of all instalments' matured values.
Why RD returns less than FD
FD: Full corpus earns from day 1
In RD, only the first deposit earns for the full tenure. Each subsequent deposit earns for one fewer month. This is why FD at the same rate gives higher absolute interest on the same total investment.

RD vs SIP vs FD — which is right for you?

RD — safe monthly savings

Best for conservative investors who want guaranteed returns and the discipline of monthly deposits. Ideal for short-to-medium goals (1–5 years). Capital and returns are guaranteed.

SIP — higher long-term growth

Best for long-term goals (5+ years). Equity mutual fund SIPs historically deliver 10–15% vs RD's 6–7.5%. Carries market risk but substantially higher wealth creation potential.

FD — lumpsum with guaranteed returns

If you already have the full corpus and don't need it for a defined period, FD delivers more interest than RD at the same rate because 100% of principal earns from day one.

Frequently asked questions

What is the minimum tenure for an RD?

Most banks offer RDs with a minimum tenure of 3 months and a maximum of 10 years. Post Office RD has a fixed 5-year tenure. The minimum deposit amount is typically ₹100/month for post office and ₹500–₹1,000/month for banks.

Is RD interest taxable?

Yes. RD interest is taxed as income at your slab rate. Banks deduct TDS at 10% if total interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

Can I break an RD before maturity?

Yes, RDs can be broken prematurely, subject to a penalty of 0.5–2% off the applicable rate. The bank will calculate interest at the rate applicable for the duration actually completed, minus the penalty.

Can I take a loan against my RD?

Yes. Most banks allow overdraft or loan against RD up to 90% of the deposit amount at an interest rate slightly above the RD rate. This lets you handle emergencies without breaking the RD.

What happens if I miss an RD instalment?

Banks charge a penalty for missed instalments — typically ₹1–₹2 per ₹100 per month of delay. If you miss too many consecutive instalments (usually 3–6), the bank may close the RD and pay interest at the premature withdrawal rate.