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RD Calculator

Calculate the maturity value of a bank recurring deposit using the standard quarterly-compounding method, with a year-wise growth view.

Rules last reviewed: September 2026

Disclaimer: Results are estimates for informational purposes only and are not professional financial, tax or legal advice. Rules change — please verify with official sources or a qualified professional before making decisions.

What is a recurring deposit?

A recurring deposit (RD) lets you save a fixed amount every month for a chosen period, usually 6 months to 10 years, at a rate fixed when you open it. It suits people without a lump sum who want a safe, disciplined way to build a corpus for a goal such as a holiday, a gadget or an emergency fund.

How RD maturity is calculated

Indian banks compound RD interest quarterly. Each monthly deposit earns interest only for the time it stays in the account, so early deposits earn the most. The standard formula is:

M = R × ((1 + i)^q − 1) ÷ (1 − (1 + i)^(−1/3))
R = monthly deposit · i = annual rate ÷ 4 · q = months ÷ 3

Worked example

₹5,000 a month at 6.5% for 5 years

Number of deposits
60
Total deposited
₹3,00,000
Interest earned
₹54,954
Maturity value
₹3,54,954

Your bank's figure may differ by a few rupees because of rounding and the exact deposit dates.

RD tips

  • Pay on time. Most banks charge a small penalty for a missed instalment, and repeated misses can close the account.
  • Interest is taxable at your slab rate and TDS may apply above the yearly threshold.
  • Compare banks, small-finance banks and the Post Office RD, which currently offers a competitive government-set rate.
  • For a lump sum, an FD compounds the whole amount from day one; an RD only earns on what has been deposited so far.

RD, FD and SIP at a glance

OptionBest forRisk
Recurring depositMonthly saving, short goalsVery low
Fixed depositA lump sum you can lock inVery low
SIP in mutual fundsLong-term wealth buildingMarket-linked

Frequently asked questions

Is RD interest compounded quarterly?

Yes, in most Indian banks. That is why this calculator uses quarterly compounding, the standard bank method.

What happens if I miss an RD instalment?

Banks levy a penalty, typically a small amount per ₹100 per month of delay. If you miss several instalments the account may be closed and paid out with reduced interest.

Can I withdraw an RD before maturity?

Most banks allow premature closure with a penalty on the interest rate. Some also offer a loan against your RD.

RD or SIP — which is better?

An RD gives guaranteed, low-risk returns; a SIP in equity funds can earn more over the long term but carries market risk. Match the choice to your goal and time horizon.

Is a Post Office RD better than a bank RD?

Post Office RD rates are set by the government each quarter and are backed by the Government of India, while bank rates vary by lender. Compare the current rates and choose the higher one for your tenure.