RD Calculator
Find out the maturity value of your Recurring Deposits (RD) over time.
Recurring Deposit (RD) Maturity
An RD lets you deposit a fixed sum every month and earn bank interest similar to FDs. Each instalment earns interest for a different duration, so maturity math differs from a one-time FD. RDs suit short goals like school fees, travel, or a three-year gadget fund.
How to use this calculator
Enter the monthly amount you can commit without missing instalments. Banks auto-debit RD accounts. A bounced instalment may attract penalty and, after repeated misses, premature closure at reduced interest.
Choose tenure in months, commonly 6 to 120. Pick the rate from your bank's RD product page for that bucket. Senior citizens may get a small premium on the same tenure.
Use maturity output to plan goal-based savings. For horizons beyond three years, compare post-tax RD yield with debt mutual funds or FD because RD interest is taxable like FD at your slab.
Set auto-debit two days after salary credit to reduce missed instalments. If your bank offers RD linked to a savings account sweep, confirm whether sweep balance earns separate savings interest on days before RD debit.
Why RD interest differs from FD
In an FD, the full principal earns interest for the entire tenure. In an RD, the first instalment earns for N months, the second for N−1 months, and so on. Example: ₹5,000 per month for 24 months at 7% (bank formula). Total deposited = ₹1.2 lakh. Maturity often lands near ₹1.29 lakh depending on quarterly compounding rules. Each bank posts its own RD formula. Use your bank's quoted maturity as the final check.
Frequently Asked Questions
Can I skip an RD instalment?
One miss usually draws a small penalty. Repeated misses can lead to account closure at reduced interest.
TDS on RD?
Yes, 10% TDS if annual interest exceeds ₹40,000 (₹50,000 for senior citizens) unless you submit Form 15G or 15H.
Variable monthly deposits?
Standard RDs need a fixed amount. Some banks offer Flexi RD with varying deposits within a cap.
RD vs mutual fund SIP?
RDs suit sub-2-year goals with zero market risk. Equity SIPs suit longer horizons where inflation matters more.
What happens at maturity?
Proceeds credit to your linked savings account. Reinvest into a new RD or FD the same day if rates moved up.
Break RD early?
Premature closure is allowed with about 0.5% to 1% penalty on the applicable rate for the period run.
Post-tax RD vs liquid funds?
In the 30% slab, post-tax RD yield often trails liquid or arbitrage funds after tax, though RD has fixed rupee certainty.
RD for minors?
Guardians can open RD in a minor's name with KYC documents. Interest is clubbed with the guardian's income for tax until the child turns 18 in most cases.
Senior citizen RD rate?
Many banks add 0.25% to 0.50% on RD card rates for senior citizens, similar to FD premiums. Confirm on the tenure bucket you select.
RD through post office?
Post office RD runs for 5 years with monthly deposits. Rates are notified quarterly and follow government small savings rules similar to bank RDs.
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