RD Calculator
A Recurring Deposit is the FD's monthly sibling: you deposit a fixed sum every month, the bank compounds it quarterly, and at the end you collect the maturity amount. It's the simplest disciplined-saving tool in Indian banking.
Example: ₹5,000/month at 7% for 5 years matures to about ₹3.59 lakh on ₹3 lakh deposited. Modest — but for money you can't afford to risk, an RD does exactly what it promises.
Four steps, thirty seconds.
Enter your monthly deposit. What you can set aside on salary day, every month.
Set the interest rate. RD rates usually mirror the bank's FD rates for the same tenure.
Choose the tenure. 1–5 years is standard; 6-month to 10-year RDs exist too.
Compare with SIP. Run the same ₹5,000 through our SIP calculator — the gap shows what 'guaranteed' costs you.
The formula (quarterly compounding, monthly deposits): M = R × [((1+i)n − 1) / (1 − (1+i)−1/3)], where i = annual rate ÷ 4, n = quarters.
Worked example: ₹5,000/month at 7% for 5 years → ₹3.59 lakh maturity (₹3 lakh deposited + ₹59,431 interest).
Standard Indian bank RD maturity formula with quarterly compounding (RBI convention).
Yes — like FD interest, fully taxable at your slab rate, with TDS beyond the threshold. RDs have no tax benefits.
Banks charge a small penalty per missed instalment, and the maturity value drops slightly. Most banks allow you to pay the missed instalment later.
Yes, with a premature-closure penalty similar to FDs (usually 0.5–1% lower rate). Some banks offer loan/overdraft against RD instead.
Our RD vs SIP guide works this out: ₹5,000/month for 5 years → ~₹3.56 lakh in an RD at 6.75% vs ~₹4.1 lakh in a SIP at 12%. The SIP's extra ~₹54,000 is the market-risk premium.
Post-office 5-year RD currently pays 6.7% (revised quarterly) with sovereign backing. Compare with your bank's rate — the difference is usually small.
Disclaimer: Educational illustration only — not financial advice. Standard quarterly-compounded RD math; penalties for missed instalments not included.