Calculate your RD maturity amount with monthly deposits
Minimum: ₹100/month (varies by bank)
Current RD rates: 5.5% - 7.5% p.a.
Minimum: 6 months, Maximum: 10 years
₹0
0.0%
Effective Returns
₹0
Avg. Monthly Interest
| Year | Deposits | Deposited | Interest | Total Amount |
|---|---|---|---|---|
| Year 1 | 12 | ₹60,000 | ₹2,113 | ₹62,113 |
| Year 2 | 24 | ₹1,20,000 | ₹8,125 | ₹1,28,125 |
| Year 3 | 36 | ₹1,80,000 | ₹18,038 | ₹1,98,038 |
| Year 4 | 48 | ₹2,40,000 | ₹31,850 | ₹2,71,850 |
| Year 5 | 60 | ₹3,00,000 | ₹49,563 | ₹3,49,563 |
| Month | Deposit | Monthly Interest | Cumulative Interest | Balance |
|---|---|---|---|---|
| 1 | ₹5,000 | ₹27 | ₹27 | ₹5,027 |
| 2 | ₹5,000 | ₹54 | ₹81 | ₹10,081 |
| 3 | ₹5,000 | ₹81 | ₹163 | ₹15,163 |
| 4 | ₹5,000 | ₹108 | ₹271 | ₹20,271 |
| 5 | ₹5,000 | ₹135 | ₹406 | ₹25,406 |
| 6 | ₹5,000 | ₹163 | ₹569 | ₹30,569 |
| 7 | ₹5,000 | ₹190 | ₹758 | ₹35,758 |
| 8 | ₹5,000 | ₹217 | ₹975 | ₹40,975 |
| 9 | ₹5,000 | ₹244 | ₹1,219 | ₹46,219 |
| 10 | ₹5,000 | ₹271 | ₹1,490 | ₹51,490 |
| 11 | ₹5,000 | ₹298 | ₹1,788 | ₹56,788 |
| 12 | ₹5,000 | ₹325 | ₹2,113 | ₹62,113 |
| 13 | ₹5,000 | ₹352 | ₹2,465 | ₹67,465 |
| 14 | ₹5,000 | ₹379 | ₹2,844 | ₹72,844 |
| 15 | ₹5,000 | ₹406 | ₹3,250 | ₹78,250 |
| 16 | ₹5,000 | ₹433 | ₹3,683 | ₹83,683 |
| 17 | ₹5,000 | ₹460 | ₹4,144 | ₹89,144 |
| 18 | ₹5,000 | ₹488 | ₹4,631 | ₹94,631 |
| 19 | ₹5,000 | ₹515 | ₹5,146 | ₹1,00,146 |
| 20 | ₹5,000 | ₹542 | ₹5,688 | ₹1,05,688 |
| 21 | ₹5,000 | ₹569 | ₹6,256 | ₹1,11,256 |
| 22 | ₹5,000 | ₹596 | ₹6,852 | ₹1,16,852 |
| 23 | ₹5,000 | ₹623 | ₹7,475 | ₹1,22,475 |
| 24 | ₹5,000 | ₹650 | ₹8,125 | ₹1,28,125 |
See how different interest rates affect your maturity amount with the same monthly deposit of ₹5,000 for 60 months.
| Interest Rate | Total Deposit | Interest Earned | Maturity Amount | Difference |
|---|---|---|---|---|
| 5.5% p.a. | ₹3,00,000 | ₹41,938 | ₹3,41,938 | +₹3,41,938 |
| 6% p.a. | ₹3,00,000 | ₹45,750 | ₹3,45,750 | +₹3,45,750 |
| 6.5% p.a.(Current) | ₹3,00,000 | ₹49,563 | ₹3,49,563 | +₹3,49,563 |
| 7% p.a. | ₹3,00,000 | ₹53,375 | ₹3,53,375 | +₹3,53,375 |
| 7.5% p.a. | ₹3,00,000 | ₹57,188 | ₹3,57,188 | +₹3,57,188 |
| 8% p.a. | ₹3,00,000 | ₹61,000 | ₹3,61,000 | +₹3,61,000 |
Compare maturity amounts across major banks for 60 months tenure with monthly deposit of ₹5,000.
| Bank | Regular Rate | Senior Citizen | Maturity (Regular) | Maturity (SC) |
|---|---|---|---|---|
| SBI | 6.5% | 7.5% | ₹3,49,563 | ₹3,57,188 |
| HDFC Bank | 7% | 7.5% | ₹3,53,375 | ₹3,57,188 |
| ICICI Bank | 7% | 7.5% | ₹3,53,375 | ₹3,57,188 |
| Axis Bank | 7% | 7.75% | ₹3,53,375 | ₹3,59,094 |
| PNB | 6.5% | 7.25% | ₹3,49,563 | ₹3,55,281 |
| Post Office | 6.7% | 6.7% | ₹3,51,088 | ₹3,51,088 |
* Rates are indicative and subject to change. Senior citizen rates apply for age 60 years and above.
A Recurring Deposit (RD) is a special term deposit offered by banks and post offices that allows you to deposit a fixed amount every month for a predetermined period. It combines the benefits of systematic savings with the security and returns of a fixed deposit.
Unlike a Fixed Deposit where you invest a lump sum amount, RD allows you to invest small amounts regularly, making it ideal for salaried individuals and people with regular monthly income who want to build a corpus over time.
M = P × n(n+1) / (2 × 12) × r/100
Where:
Example Calculation:
For a monthly deposit of ₹5,000 at 7% interest for 5 years (60 months):
Deposit a fixed amount every month. Minimum deposit starts from ₹100 per month (varies by bank).
Choose tenure from 6 months to 10 years based on your financial goals.
Get guaranteed returns at a fixed interest rate, higher than regular savings accounts.
Get loan against your RD up to 80-90% of the deposit amount at competitive interest rates.
Withdraw prematurely with a penalty (usually 1-2% less interest) after minimum tenure.
Set up standing instruction for automatic monthly deduction from your savings account.
| Feature | Recurring Deposit | Fixed Deposit | Savings Account |
|---|---|---|---|
| Investment Type | Fixed monthly deposits | Lump sum investment | Anytime deposits/withdrawals |
| Interest Rate | 5.5% - 7.5% p.a. | 6.0% - 8.0% p.a. | 2.7% - 4.0% p.a. |
| Tenure | 6 months - 10 years | 7 days - 10 years | No lock-in period |
| Liquidity | Premature withdrawal allowed with penalty | Premature withdrawal allowed with penalty | Complete liquidity |
| Loan Facility | ✓ Available (up to 90%) | ✓ Available (up to 90%) | Overdraft facility |
| Best For | Regular savers, salaried individuals | Lump sum investors | Emergency funds, daily transactions |
| Minimum Amount | ₹100/month onwards | ₹1,000 onwards | ₹500 - ₹10,000 |
Unlike certain fixed deposits (5-year tax saver FD), recurring deposits do not offer any tax deduction benefits under Section 80C of the Income Tax Act. The principal amount invested in RD is not eligible for tax deduction.
If you need to break your RD before maturity, here's what you need to know:
If you have an RD with:
Normal Interest: 7% p.a.
Penalty: 1% (example)
Revised Interest: 6% p.a.
You'll receive amount calculated at 6% interest for 36 months instead of 7%.
Most banks offer loan facility against your recurring deposit, providing you with liquidity without breaking your RD.
80-90%
of the current value of your RD can be borrowed
+1-2%
above the RD interest rate (typically 8-9% p.a.)
Flexible
Repay anytime; principal deducted from maturity
Different banks offer different RD rates. Small finance banks and post offices often offer higher rates than regular banks.
If you're above 60, take advantage of additional 0.5-0.75% interest offered to senior citizens.
Open multiple RDs with staggered maturity dates to have regular liquidity while earning higher interest.
Automate your RD deposits to avoid missing any installment. Missing deposits attracts penalty.
Generally, longer tenure RDs (3-5 years) offer better interest rates. Choose tenure based on your goal timeline.
Breaking RD before maturity reduces your returns significantly. Keep emergency funds separately for liquidity needs.
Missing deposits can attract penalties and may even lead to RD closure in some banks. Always maintain sufficient balance for auto-debit.
Interest rates vary significantly across banks. A difference of even 0.5% can mean thousands of rupees over long tenures. Always compare before opening RD.
Match your RD tenure with your financial goal timeline. Premature withdrawal defeats the purpose and results in lower returns.
Many people forget to declare RD interest in their tax returns. Interest is taxable on accrual basis and must be reported annually.
Always nominate someone for your RD. This ensures smooth transfer of funds to your nominee in case of unfortunate events.
Disclaimer: This calculator provides estimated values for educational purposes only. Actual interest rates, maturity amounts, and tax implications may vary based on your bank's policies, account type, and current regulations. Interest rates mentioned are indicative and subject to change. Please consult with your bank and a qualified financial advisor for personalized advice and exact calculations. Always verify current interest rates and terms before opening an RD account.