Recurring Deposit (RD) Calculator

What is an RD?

A recurring deposit lets you put in a fixed amount each month for a set tenure. Banks and post offices credit interest quarterly. Minimum deposit is usually ₹100/month; tenure typically runs from 6 months to 10 years.

How this calculator works

Each monthly installment is compounded separately for the time left until maturity, then summed. Actual bank figures may round differently or use a slightly different compounding method, so treat the output as an estimate.

Account rules

• • Missed installments may attract a penalty — keep enough balance for auto-debit
• • Premature closure is allowed after a minimum period, usually with 1–2% less interest
• • Post Office RD uses simple interest and will show a lower maturity than bank RDs
• • DICGC covers bank RD deposits up to ₹5 lakh per depositor per bank

Tax and TDS

• • RD interest is taxable as income from other sources at your slab rate
• • Banks deduct 10% TDS if annual interest from all deposits crosses ₹40,000 (₹50,000 for senior citizens)
• • File Form 15G/15H if your total income is below the taxable limit
• • No Section 80C deduction — unlike a 5-year tax-saver FD

Loan and withdrawal

• • Banks typically lend up to 80–90% of the accrued RD value without closing the account
• • Loan interest is usually 1–2% above the RD rate
• • On premature closure, interest is recalculated at a reduced rate per bank rules

RD vs FD

RD suits regular monthly savers who do not have a lump sum. FD rates are often slightly higher on the same tenure because the full principal earns interest from day one. For a one-time amount, FD is usually better; for building savings month by month, RD is the simpler option.