RD Calculator

Calculate Recurring Deposit maturity amount and interest earned. Perfect tool for systematic savings and investment planning.

Monthly Installment Amount deposited each month

Annual Interest Rate (%) Annual interest rate

Tenure (Months) Investment period in months

Tax Rate (%) (Optional) TDS rate on interest earned

RD Calculation Results

Monthly Installment: ₹0

Total Amount Invested: ₹0

Total Interest Earned: ₹0

Tax Deducted: ₹0

Maturity Amount: ₹0

Effective Annual Return: 0.00%

What Is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a popular investment tool offered by banks and post offices that allows individuals with a regular income to deposit a fixed amount every month and earn interest at rates similar to Fixed Deposits (FDs). It is an ideal savings scheme for people who want to save a part of their income regularly without risking their capital.

At the end of the tenure, the investor receives the total amount deposited along with the accumulated interest.

How Does an RD Calculator Work?

An RD calculator helps you determine the maturity value of your investment based on your monthly deposit, interest rate, and tenure. The interest on an RD is usually compounded quarterly by most banks.

The Formula used for calculation is:

M = R × [(1 + i)^n - 1] / [1 - (1 + i)^(-1/3)]

Where:

M = Maturity Value
R = Monthly Installment
i = Interest Rate / 400 (Quarterly rate)
n = Number of Quarters

Our calculator simplifies this complex math and provides you with the exact maturity amount instantly!

Benefits of Investing in a Recurring Deposit

Safe Investment: RDs are offered by regulated banks and post offices, making them extremely low-risk investments.
Regular Savings Habit: Since you commit to depositing a fixed amount every month, it helps build a disciplined savings habit.
Higher Returns than Savings Account: RDs offer higher interest rates than a regular savings bank account.
Flexibility: You can choose a tenure ranging from 6 months to 10 years based on your financial goals.

Frequently Asked Questions (FAQs)

Is TDS applicable on Recurring Deposits?

Yes, Tax Deducted at Source (TDS) is applicable on the interest earned on RDs if it exceeds a certain threshold (currently ₹40,000 for regular individuals and ₹50,000 for senior citizens in India) in a financial year.

Can I withdraw my RD before maturity?

Yes, premature withdrawal is allowed, but banks usually levy a penalty in the form of a lower interest rate than originally promised.

What happens if I miss an RD installment?

If you miss a monthly installment, the bank may charge a penalty fee. If installments are missed consecutively for a few months, the bank might close the RD account and return the amount with applicable interest.