See exactly how much your RD will grow to — before you open one
Enter your monthly deposit, the interest rate your bank offers, and the tenure. The RD calculator instantly shows your total maturity value, the interest you earn, and how your money builds up month by month — so you can compare options before committing.
RD vs FD in one line: A recurring deposit (RD) lets you deposit a fixed amount every month; a fixed deposit (FD) takes one lump sum upfront. Same bank rates, different savings habit.
⚠️ Interest earned on an RD is fully taxable as per your income-tax slab under the head 'Income from Other Sources'. If your total bank interest (RD + FD + savings) exceeds ₹40,000 in a year (₹50,000 for senior citizens), the bank deducts TDS at 10%. Check the latest thresholds on the Income Tax Department website.
How to use this RD calculator
- Monthly deposit — enter the amount you plan to deposit each month (e.g. ₹5,000).
- Annual interest rate — check your bank's current RD rate and type it in (e.g. 7.1%).
- Tenure — choose how many months or years you want to save.
- Hit Calculate. The result shows your maturity value (total money you get back), the total amount deposited, and the interest earned.
Everything updates instantly. Try different rates or tenure to see how even a small rate difference changes the final number.
Worked example — ₹5,000/month at 7% for 3 years
Say you open an RD at a bank offering 7% per annum, depositing ₹5,000 every month for 36 months.
- Total deposited: ₹5,000 × 36 = ₹1,80,000
- Maturity value (quarterly compounding): ≈ ₹2,01,660
- Interest earned: ≈ ₹21,660
That ₹21,660 is added to your principal at maturity — but remember, it is taxable income in the year it is credited.
How the maturity value is calculated
Banks compound RD interest quarterly (four times a year), as mandated by the Reserve Bank of India. Each monthly instalment earns interest for the remaining months, compounded every quarter.
The standard formula applied to each instalment n (where n runs from 1 to the total number of months N) is:
Maturity value of one instalment:
A = P × (1 + r/4)^(4t)
Where:
P = monthly deposit amount (₹)
r = annual interest rate (as a decimal, e.g. 0.07 for 7%)
t = remaining time in years for that instalment
= (N - n + 1) / 12
Total maturity value = Sum of A for all instalments (n = 1 to N)
Each instalment earns compound interest for a different length of time — the first deposit earns interest for the full tenure, the last deposit earns interest for only one month.
| Monthly deposit | Rate (p.a.) | Tenure | Total deposited | Maturity value* | Interest earned |
|---|---|---|---|---|---|
| ₹2,000 | 6.5% | 2 years | ₹48,000 | ≈ ₹51,690 | ≈ ₹3,690 |
| ₹5,000 | 7.0% | 3 years | ₹1,80,000 | ≈ ₹2,01,660 | ≈ ₹21,660 |
| ₹10,000 | 7.5% | 5 years | ₹6,00,000 | ≈ ₹7,27,090 | ≈ ₹1,27,090 |
| ₹20,000 | 7.0% | 10 years | ₹24,00,000 | ≈ ₹34,63,700 | ≈ ₹10,63,700 |
*Quarterly compounding. Figures are indicative — actual maturity values vary slightly by bank and exact deposit dates.
Rules, rates and limits you should know (FY 2025-26)
- Compounding frequency: RBI requires quarterly compounding for bank RDs.
- Minimum tenure: typically 6 months; maximum is usually 10 years (varies by bank).
- Minimum deposit: as low as ₹100/month at some banks; no upper limit in most cases.
- TDS threshold (FY 2025-26): TDS at 10% is deducted if total interest paid by the bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). No TDS if you submit Form 15G/15H and your income is below the taxable limit.
- Tax on interest: Interest is taxed as per your income-tax slab — there is no exemption like PPF. You must declare it under 'Income from Other Sources'.
- Premature withdrawal: Allowed, but banks deduct a penalty (typically 0.5%–1% lower rate) on the actual period of holding.
- Post Office RD: Post Office 5-year RD currently earns 6.7% p.a. (compounded quarterly) for Q1 FY 2025-26 — check India Post or the Ministry of Finance for the latest rate.
Practical tips to get the most from your recurring deposit
- Compare bank rates actively. Small finance banks and some co-operative banks often offer 0.5%–1% higher rates than large public sector banks. Even 0.5% extra on ₹5,000/month for 5 years adds roughly ₹4,000–₹5,000 to your maturity amount.
- Senior citizens get a higher rate. Most banks offer an additional 0.25%–0.5% p.a. on RDs for depositors aged 60 and above.
- Use Form 15G / 15H to avoid TDS if your total income is below the basic exemption limit — submit it at the start of the financial year, not after TDS is deducted.
- Don't skip instalments. A missed monthly payment attracts a penalty (typically ₹1–₹2 per ₹100 per month). If you miss too many, the bank may close the RD.
- RD is not 80C eligible. Unlike a 5-year bank FD (tax-saving FD), a regular RD does not qualify for deduction under Section 80C. If tax saving is your goal, look at a 5-year FD, PPF, or ELSS.
- These results are indicative. The calculator uses the standard quarterly-compounding formula. Actual maturity amounts may vary slightly depending on your bank's internal calculation method and exact credit dates.
All calculations on this page run entirely in your browser. No numbers you enter are sent to any server or stored anywhere.
Plug in your figures above and find your maturity value in seconds — then use the month-by-month chart to see exactly how your savings build up over time.