Recurring Deposit (RD) Calculator

Quick answer

A Recurring Deposit (RD) is a savings scheme where you deposit a fixed amount every month for a chosen tenure, with interest compounded quarterly. The maturity amount at the end is the sum of all deposits plus accrued compound interest.

What is RD?

RD is the SIP-like cousin of FD. Instead of locking a lump sum, you commit to a fixed monthly deposit for a tenure (usually 6 months to 10 years). Interest accrues quarterly, like a regular FD, but on the slowly-growing balance — each month's deposit gets less time to compound than the previous one.

It is popular for salaried people who want forced savings. The bank auto-debits a fixed amount monthly. Unlike a SIP into a mutual fund, the rate is fixed at the start and there is no market risk.

Returns are similar to FDs of the same tenure (6.5%-7.5% in 2026 for general citizens). Senior citizens get 0.5%-0.75% extra. Interest is fully taxable at slab rate.

RD maturity math

Each monthly installment compounds at the bank's quarterly rate for the remaining time in the RD. The maturity amount is the sum of all 12n installments after compounding.

Formula

M = ΣP × (1 + r)^((n−i+1)/3) for i = 1 to n

P: Monthly deposit—the fixed amount you deposit each month
r: Quarterly rate—annual rate / 4 / 100
n: Total months—tenure × 12

Worked example

Monthly₹5,000

Rate7%

Tenure60 months (5 yrs)

Total invested: ₹3,00,000

After quarterly compounding

➜ Maturity ≈ ₹3,59,000 • Interest ≈ ₹59,000

How to use this calculator

Three inputs: monthly amount, rate, tenure in months.

Enter monthly deposit
Most banks accept ₹100 to any amount.
Enter rate
Use the rate quoted by your bank for RD at this tenure.
Enter tenure in months
Common: 12, 24, 36, 60, 120 months.

When an RD makes sense

Forced monthly savings

Auto-debit means you save before spending. Useful if discipline is the limiting factor.

Saving for a 1-3 year goal

Wedding, vehicle, vacation — RD locks in today's rate for the full tenure.

Conservative income

Predictable monthly contribution, predictable maturity. No market risk.

Common mistakes to avoid

Skipping a monthly deposit

Banks usually charge a small penalty (₹10-50). Set up auto-debit to avoid lapses.

Choosing a long tenure when goal is short

RD lock-in is strict. Match tenure to your goal date precisely.

Glossary

Recurring Deposit: Fixed monthly deposits with quarterly compounded interest, locked for a tenure.
Maturity amount: Total payout at end of tenure — sum of deposits plus interest.
Premature withdrawal: Breaking the RD early. Bank deducts interest at a lower rate.

Frequently asked questions

How does a recurring deposit work?

You deposit a fixed amount every month for a chosen tenure (6 months to 10 years), and the bank pays FD-like interest compounded quarterly. At maturity you get all deposits plus interest — ideal for building a goal-based corpus from salary.

What are current RD interest rates?

Bank RDs pay roughly 6.5–7.5% in 2026, with senior citizens getting 0.25–0.5% extra. Post Office RD pays a government-set rate revised quarterly. Rates match the bank's FD rate for the same tenure.

Is RD interest taxable?

Fully taxable at your slab rate. Banks deduct 10% TDS if your total interest across FDs and RDs exceeds ₹40,000 a year (₹50,000 for senior citizens). Submit Form 15G/15H if your income is below the taxable limit.

What happens if I miss an RD installment?

Banks charge a small penalty (typically ₹1–2 per ₹100 per month of delay) and Post Office charges ₹1 per ₹100. Miss 4–6 consecutive installments and the account can be discontinued, though most banks let you revive it.

RD or SIP — which should I choose?

RD guarantees the return, making it right for goals under 3 years. SIPs in equity funds historically return more (10–14%) but fluctuate, suiting 5+ year goals. Many people run both: RD for near-term certainty, SIP for long-term growth.

Disclaimer: Results are estimates based on the inputs you provide. They are not professional advice. For consequential decisions — financial, tax, medical, or legal — verify with a qualified professional.