Recurring Deposit (RD) Calculator
Recurring Deposits are perfect for building a savings habit without a large initial lump sum. Calculate your future wealth today.
Recurring Deposit
₹1,28,425
RD interest rates are generally similar to Fixed Deposit rates of the same tenure.
This calculation assumes quarterly compounding as per Indian banking standards. Final maturity values may differ slightly based on your bank's specific formula.
Benefits of Recurring Deposits
RDs allow you to invest small amounts monthly while earning interest rates comparable to Fixed Deposits. They are ideal for short-to-medium term goals like vacations, gadget purchases, or emergency funds.
Discipline
Forces a monthly savings habit with a fixed commitment.
Low Entry
Start with as little as ₹500 or ₹1,000 per month.
Guaranteed Returns
The interest rate is locked at the time of opening the RD.
How to use the RD Calculator?
- Monthly Deposit: Set the amount you wish to save every month.
- Interest Rate: Enter the annual rate offered by your bank (Standard is 6% - 7.5%).
- Tenure: Choose the number of months you want to save for (usually 6 to 120 months).
- Maturity Value: Instantly see how much you will get back at the end of the period.
Frequently Asked Questions
What is a Recurring Deposit (RD)?
An RD is a type of term deposit offered by banks in India that allows you to deposit a fixed amount every month for a pre-determined period and earn interest similar to a Fixed Deposit.
How is RD interest calculated?
In India, RD interest is usually compounded quarterly. Banks use the formula for maturity value as prescribed by the RBI, which accounts for the monthly installments and the compounding effect.
Can I change the monthly RD amount?
No, once an RD account is opened, the monthly installment amount cannot be changed during the tenure of the deposit.
What happens if I miss an RD installment?
If you miss an installment, most banks charge a small penalty. If multiple installments are missed, the bank may close the RD account and convert it into a regular savings account balance or a reduced interest deposit.
Is RD interest taxable?
Yes, interest earned on Recurring Deposits is taxable. TDS is deducted at 10% if the total interest across all your deposits in a bank exceeds ₹40,000 (₹50,000 for senior citizens) in a year.