RD Calculator
Calculate Recurring Deposit maturity amount and interest earned
Maturity Amount
₹1,29,099
Total Deposited
₹1,20,000
Interest Earned
₹9,099
Month-wise Growth (first 24 months)
| Month | Total Deposited | Estimated Balance |
|---|---|---|
| Month 1 | ₹5,000 | ₹5,029 |
| Month 2 | ₹10,000 | ₹10,087 |
| Month 3 | ₹15,000 | ₹15,175 |
| Month 4 | ₹20,000 | ₹20,292 |
| Month 5 | ₹25,000 | ₹25,438 |
| Month 6 | ₹30,000 | ₹30,615 |
| Month 7 | ₹35,000 | ₹35,821 |
| Month 8 | ₹40,000 | ₹41,058 |
| Month 9 | ₹45,000 | ₹46,325 |
| Month 10 | ₹50,000 | ₹51,623 |
| Month 11 | ₹55,000 | ₹56,951 |
| Month 12 | ₹60,000 | ₹62,311 |
| Month 13 | ₹65,000 | ₹67,701 |
| Month 14 | ₹70,000 | ₹73,123 |
| Month 15 | ₹75,000 | ₹78,576 |
| Month 16 | ₹80,000 | ₹84,060 |
| Month 17 | ₹85,000 | ₹89,577 |
| Month 18 | ₹90,000 | ₹95,125 |
| Month 19 | ₹95,000 | ₹1,00,706 |
| Month 20 | ₹1,00,000 | ₹1,06,319 |
| Month 21 | ₹1,05,000 | ₹1,11,965 |
| Month 22 | ₹1,10,000 | ₹1,17,643 |
| Month 23 | ₹1,15,000 | ₹1,23,354 |
| Month 24 | ₹1,20,000 | ₹1,29,099 |
Recurring Deposit Guide — Disciplined Saving with Guaranteed Returns
A Recurring Deposit (RD) is the perfect savings instrument for individuals who want to save regularly but cannot commit a large lump sum. By depositing a fixed amount every month, you build a corpus over time while earning guaranteed interest — making it ideal for short-to-medium term financial goals.
How RD Interest is Calculated
RD interest is compounded quarterly in India. Each monthly installment earns interest from the date of deposit until maturity. The formula accounts for the fact that each installment has a different remaining tenure. The first installment earns interest for the full tenure, while the last installment earns interest for just one month.
RD vs FD — Key Differences
Investment Pattern: FD requires a lump sum upfront; RD requires monthly installments. RD is better for those without a large corpus but with regular income.
Interest Rates: FD rates are slightly higher than RD rates for the same tenure and bank. However, the difference is usually small (0.25–0.5%).
Flexibility: FD allows partial withdrawal in some cases; RD generally requires full tenure completion for maximum returns.
RD vs SIP — Which is Better?
RD offers guaranteed returns with zero market risk, making it suitable for short-term goals (1–3 years) and risk-averse investors. SIP in equity mutual funds offers potentially higher returns (10–15%) but with market risk, making it suitable for long-term goals (5+ years). For an emergency fund or a goal within 2 years, RD is the better choice. For retirement or long-term wealth creation, SIP wins.
Post Office RD — A Safe Alternative
The Post Office Recurring Deposit scheme offers 6.7% interest (2026) with sovereign guarantee. It has a 5-year tenure and minimum deposit of ₹100/month. It's an excellent option for those in areas with limited banking access or those who prefer government-backed instruments.
Tax on RD Interest
RD interest is taxable as per your income slab. Banks deduct TDS at 10% if total interest from all deposits exceeds ₹40,000 in a year (₹50,000 for senior citizens). Unlike PPF or ELSS, there is no tax exemption on RD interest. Factor in the post-tax return when comparing RD with other instruments.
Best Uses for RD
- Building an emergency fund over 12–24 months
- Saving for a vacation, gadget, or short-term purchase
- Children's school fees or annual expenses
- Down payment for a vehicle or home
- Teaching financial discipline to young earners