💰 Recurring Deposit (RD) Calculator 2026
Calculate your RD maturity amount, total interest, and quarterly compounding benefits. Plan your savings with guaranteed returns.
📊 Investment Details
Range: ₹100 - ₹50,000 per month
Current bank RD rates: 6.5-7.5% | Post Office: 6.7%
Most banks use quarterly compounding for RDs
Maturity Amount
₹ 0
Total Deposits
₹ 0
Interest Earned
₹ 0
Year-on-Year Growth
Current RD Rates (2026)
SBI
6.50%
HDFC
6.75%
ICICI
6.60%
Post Office
6.70%
💰 What is Recurring Deposit (RD)?
A Recurring Deposit (RD) is a fixed-term investment instrument offered by banks and post offices where you deposit a fixed amount every month and earn interest at a predetermined rate. It's ideal for salaried individuals who want to build a corpus with regular savings. RDs offer guaranteed returns and are safer than market-linked investments.
📐 How RD Calculator Works?
The calculator uses the compound interest formula for recurring deposits, considering quarterly compounding (standard for most banks). Each monthly installment earns interest for the remaining period.
Formula Used:
M = R × [(1+i)^n - 1] / (1 - (1+i)^(-1/3))
- M: Maturity Amount
- R: Monthly Installment
- i: Quarterly interest rate (Annual/4)
- n: Number of quarters (Years × 4)
📊 Example Calculation
If you deposit ₹5,000 per month for 5 years at 6.5% p.a. compounded quarterly:
- Total Deposits: ₹3,00,000
- Interest Earned: ₹52,842
- Maturity Amount: ₹3,52,842
📈 RD vs Other Investments
- Safety: RDs are safer than mutual funds (guaranteed returns)
- Liquidity: Premature withdrawal allowed with penalty
- Taxation: Interest is taxable as per income slab
- Loan against RD: Most banks offer up to 90% loan
❓ Frequently Asked Questions
Can I break RD before maturity?
Yes, you can prematurely close your RD. However, banks usually charge a penalty (typically 1% reduction in interest rate) for premature withdrawal.
Is RD interest taxable?
Yes, interest earned on RD is taxable under "Income from Other Sources". TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
What is the minimum deposit for RD?
Minimum deposit varies by bank - typically ₹100 to ₹500 per month. Post Office RD minimum is ₹10 per month (₹100 in multiples of ₹10).
Which is better: Bank RD or Post Office RD?
Post Office RD offers slightly higher interest rates (6.7% vs 6.5% for banks) and is government-backed. However, bank RDs offer more flexibility with online management and loan facilities.
⚠️ Disclaimer: This calculator provides estimates based on entered values. Actual returns may vary based on bank policies and interest rate changes.