Advanced RD Calculator
Calculate your Recurring Deposit returns with our powerful and accurate calculator
Calculate Your RD Returns
Fill in the details below to calculate your Recurring Deposit maturity amount
Your RD Returns
Maturity Amount
₹1,97,655
You will earn ₹17,655 on your investment
Total Investment
₹1,80,000
Total Interest
₹17,655
Interest Rate
6.5%
Tenure
36 Months
Accurate Calculations
Our calculator uses advanced algorithms to provide precise maturity amount calculations for your recurring deposits.
Compare Options
Easily compare different RD schemes from various banks to find the best investment option for your needs.
Export Results
Download your calculation results as PDF for future reference or to share with your financial advisor.
Frequently Asked Questions
What is a Recurring Deposit?
A Recurring Deposit (RD) is a special type of term deposit offered by banks and financial institutions that allows people with regular income to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to fixed deposits. It's a disciplined way to save money and build a corpus over time.
How is RD interest calculated?
The formula to calculate RD maturity value is: M = R × [(1 + i)^n - 1] / (1 - (1 + i)^(-1/3))
Where:
M = Maturity value
R = Monthly installment
i = Rate of interest / 400 (for quarterly compounding)
n = Number of quarters
Most banks use quarterly compounding for RD interest calculation.
Where:
M = Maturity value
R = Monthly installment
i = Rate of interest / 400 (for quarterly compounding)
n = Number of quarters
Most banks use quarterly compounding for RD interest calculation.
What is the minimum amount to open an RD?
The minimum amount required to open a recurring deposit varies from bank to bank. Generally, it ranges from ₹100 to ₹5000 for most banks in India. Some banks may even allow you to start an RD with as low as ₹10 per month. The maximum amount is usually without any upper limit.
Are recurring deposits taxable?
Yes, the interest earned on recurring deposits is fully taxable as per your income tax slab. Banks also deduct TDS (Tax Deducted at Source) if the interest income exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). However, the principal amount invested in RD is not tax-deductible under Section 80C like it is in other instruments such as PPF or ELSS.
Can I withdraw my RD before maturity?
Yes, most banks allow premature withdrawal of recurring deposits, but it usually comes with a penalty. The penalty amount varies from bank to bank. Typically, banks charge 1-2% lower than the contracted rate of interest if you break your RD before completion. Some banks may not allow partial withdrawals from RD accounts.
Which is better - RD or FD?
The choice between RD and FD depends on your financial situation and goals:
RD is better if:
- You want to save regularly with smaller monthly amounts
- You have a fixed monthly income
- You want to cultivate a habit of regular saving
FD is better if:
- You have a lump sum amount to invest
- You want higher interest rates (FD rates are typically slightly higher than RD rates)
- You need to park your money for a fixed period without monthly commitments
RD is better if:
- You want to save regularly with smaller monthly amounts
- You have a fixed monthly income
- You want to cultivate a habit of regular saving
FD is better if:
- You have a lump sum amount to invest
- You want higher interest rates (FD rates are typically slightly higher than RD rates)
- You need to park your money for a fixed period without monthly commitments
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