RD Maturity EstimateInterest BreakdownSavings ProjectionCompound GrowthInflation Impact

Smart RD Calculator

Estimate your recurring deposit maturity amount, interest earned, and savings growth. Adjust deposit, tenure, and rate — projections update instantly.

What is a Recurring Deposit (RD)?

A Recurring Deposit is a savings instrument offered by banks and post offices where you deposit a fixed amount every month for a chosen tenure. At maturity, you receive the total deposited principal plus compound interest accumulated over the period. RDs combine the safety of a Fixed Deposit with the monthly discipline of a systematic savings plan.

Interest on RDs is compounded quarterly by most Indian banks, which means your balance grows faster than simple interest. This calculator uses a month-by-month simulation supporting monthly, quarterly, half-yearly, and annual compounding — so your maturity estimate is as accurate as possible regardless of your bank's policy.

How to use this calculator

1

Set your monthly deposit

Enter the amount you plan to deposit every month. Use the preset chips for common values or type any amount up to ₹10L/month.

2

Choose tenure in months

Select how long you want the RD to run — from 1 month to 10 years. Use preset buttons (1yr, 2yr, 5yr…) or type the exact months.

3

Enter rate and compounding

Type your bank's annual RD interest rate and select the compounding frequency. Most banks use quarterly; check your account terms.

4

Review maturity, chart & insights

See your maturity amount, interest breakdown, stacked growth chart, smart insights, and a year-wise savings summary — all updating live.

Benefits of Recurring Deposits

Safe and guaranteed returns

RDs are one of the safest investments. Returns are guaranteed by the bank and deposits up to ₹5 lakh are insured by DICGC — your money is protected.

Builds savings discipline

Monthly deposits create a forced savings habit. Unlike a lump-sum FD, an RD fits naturally into a monthly salary cycle, making it ideal for regular earners.

Compound interest growth

Quarterly compounding means each installment earns interest on accumulated interest. Over 3–5 years, compounding adds meaningful returns above the face value.

Flexible tenure and amount

Most banks offer RD tenures from 6 months to 10 years with no maximum deposit. You can choose an amount and duration that matches your savings goal.

Loan against RD available

If you need funds before maturity, most banks allow a loan up to 80–90% of the RD value at 1–2% above the deposit rate — avoiding premature closure penalty.

Higher rates at small finance banks

Small finance banks regulated by RBI often offer 8–9% p.a. on RDs — significantly higher than large commercial banks — while still maintaining DICGC coverage.

How RD interest is calculated

Quarterly Compounding

Interest is credited at the end of each quarter. Each new quarter's interest is computed on the updated balance — principal plus all prior interest — giving a compounding boost.

Monthly Installments

Each deposit earns interest from the month it is made until maturity. Earlier installments earn interest for longer, so the total interest is an aggregate across all 'n' installments.

Effective Yield vs Nominal Rate

A 7% nominal rate compounded quarterly is actually equivalent to ~7.19% annual yield. The more frequent the compounding, the higher the effective annual return.

Inflation-Adjusted Real Value

This calculator shows what your maturity amount is worth in today's purchasing power by discounting it at your chosen inflation rate — revealing the real-terms growth.

Related tools

FD Calculator

Compare RD returns against a lump-sum Fixed Deposit.

PPF Calculator

Long-term tax-free savings with Section 80C benefit.

SIP Calculator

Estimate mutual fund SIP growth and wealth projection.

Savings Goal Planner

Plan any savings goal with monthly target and timeline.

Frequently asked questions

Common questions about recurring deposit maturity, interest calculation, and tax rules.

RD maturity is calculated using compound interest on each monthly installment. The standard formula for quarterly compounding is M = R × [(1 + r/400)^n − 1] / [1 − (1 + r/400)^(−1/3)], where R is the monthly deposit, r is the annual rate, and n is the number of quarters. This calculator simulates the balance month-by-month for accuracy across all compounding options.

RD interest rates vary by bank and tenure. Major public sector banks like SBI and PNB typically offer 6.5–7.0% p.a. Private banks like HDFC, ICICI, and Axis offer around 6.5–7.5%. Small finance banks (Jana, AU, Suryoday) often offer the highest rates at 8.0–9.0% p.a. Senior citizens usually get an additional 0.25–0.50% over the standard rate. Rates change periodically, so always verify with your bank.

RD and FD serve different goals. RD suits those who want to save a fixed amount every month — it builds discipline and is ideal for salaried individuals saving from monthly income. FD suits lump-sum investors who have a large amount and want maximum compounding from day one. For the same tenure and rate, FD will yield more interest because the entire principal earns from day one, while in RD each deposit earns from when it is made.

Yes. Most Indian banks apply quarterly compounding to RDs. This means interest is calculated at the end of every quarter on the accumulated balance, and that interest is added to the principal — the next quarter's interest then includes interest on previous interest. This compounding effect is what makes RD returns better than simple interest savings.

Yes, premature withdrawal is allowed on most RDs, but a penalty of 0.5–1.0% is deducted from the interest rate. Some banks do not allow premature closure within the first 3 months. Partial withdrawal is generally not allowed — you can only close the entire RD. If you need liquidity, consider a loan against RD, which most banks offer at 1–2% above the RD rate.

Yes. Interest earned on RD is fully taxable as 'Income from Other Sources' at your applicable slab rate. Banks deduct TDS at 10% if annual interest across all FD/RD accounts exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G (or 15H for seniors) if your total income is below the taxable limit to avoid TDS deduction.

The minimum monthly deposit for RD varies by bank. Most public sector banks allow RDs starting from ₹100/month. Private and small finance banks may have minimums of ₹500–₹1,000/month. Post Office RD (PORD) starts at ₹100/month with no maximum limit, and currently offers 6.7% p.a. (quarterly compounding) with a fixed 5-year tenure.

No. All RD calculations run entirely in your browser using JavaScript. No input values, deposit amounts, tenure, or any financial data are transmitted to any server. You can disconnect from the internet after the page loads and the calculator will still work perfectly.