Enter a target amount to see the monthly RD you need.
Use this free RD Calculator to find the maturity amount of your bank or post office recurring deposit. Enter your monthly deposit, interest rate and tenure to see the total interest you will earn. You can also enter a savings goal to find out how much you need to deposit every month.
What is a recurring deposit?
A recurring deposit (RD) lets you save a fixed amount every month for a fixed period, usually from 6 months to 10 years. The bank pays a fixed interest rate, similar to an FD, and gives you the full amount with interest at maturity.
An RD is ideal if you do not have a lump sum but can save a little from your salary every month. It builds the saving habit, and because the rate is fixed when you open it, you know exactly what you will get.
How is RD interest calculated?
Banks in India usually compound RD interest quarterly. Each monthly instalment earns interest for the months it stays in the account. The first instalment earns interest for the full tenure, while the last earns interest for just one month. The maturity amount is the sum of all instalments with their interest:
M = Σ D × (1 + r/4)4 × (k/12), for k = 1 to n
- M = maturity amount
- D = monthly deposit
- r = annual interest rate (as a decimal)
- k = number of months each instalment stays invested
- n = total number of monthly instalments
This is the method most banks follow. The calculator does the full calculation for every instalment, so you do not have to.
Example
You deposit ₹5,000 every month for 5 years (60 months) at 7% per year:
- Total deposited = ₹5,000 × 60 = ₹3,00,000
- Maturity amount = about ₹3,59,664
- Interest earned = about ₹59,664
How your RD grows over time
₹5,000 a month at 7% a year:
| Tenure | You deposit | Maturity amount |
|---|---|---|
| 1 year | ₹60,000 | ₹62,311 |
| 2 years | ₹1,20,000 | ₹1,29,099 |
| 3 years | ₹1,80,000 | ₹2,00,686 |
| 5 years | ₹3,00,000 | ₹3,59,664 |
| 10 years | ₹6,00,000 | ₹8,68,509 |
How much does the rate matter?
The same ₹5,000 a month for 5 years at different rates:
| Interest rate | Maturity amount |
|---|---|
| 6.0% | ₹3,50,318 |
| 6.5% | ₹3,54,954 |
| 7.0% | ₹3,59,664 |
| 7.5% | ₹3,64,449 |
Moving from 7% to 7.5% earns about ₹4,785 extra over 5 years, so it is worth comparing rates before you open an RD.
RD vs FD vs SIP
| RD | FD | SIP | |
|---|---|---|---|
| How you invest | Monthly | Lump sum | Monthly |
| Returns | Fixed | Fixed | Market-linked |
| Risk | Very low | Very low | Moderate to high |
| Best for | Short-term goals, saving habit | Parking a lump sum safely | Long-term wealth (7+ years) |
A simple rule: use an RD for goals within 1–3 years, such as a vacation, a gadget, school fees or a down payment, and a SIP for goals more than 7 years away.
Things to know before opening an RD
- Missed instalments: most banks charge a small penalty for a late instalment. Set up auto-debit from your savings account so you never miss one.
- Premature closure: you can usually close an RD early, but the bank may pay a lower rate.
- Safety: bank RDs are covered by DICGC deposit insurance up to ₹5 lakh per depositor per bank, along with your other deposits in that bank.
- Tax: RD interest is taxable like FD interest, and TDS may apply above the prescribed limit. Check the current rules with your bank.
- Post office RD: the post office also offers a 5-year RD at a rate set by the government every quarter. The calculation method can differ slightly from banks.
Banker’s tips
- Open the RD on salary day. Saving first and spending later is the easiest way to save.
- Use goal-based RDs. Open separate RDs for separate goals so you can see progress clearly.
- Senior citizens get more. Most banks pay a higher RD rate to depositors aged 60 and above.
- Roll the maturity into an FD. When your RD matures and you do not need the money yet, move it into an FD so it keeps earning.
Frequently asked questions
Is the RD maturity amount from this calculator exact?
It follows the quarterly compounding method most banks use, so it is very close. Small differences can come from the exact deposit dates, rounding, or the bank’s own method.
What happens if I miss an RD instalment?
Banks usually charge a small penalty for each late instalment. If several instalments are missed, the bank may close the RD. Auto-debit is the safest option.
Can I change the monthly amount later?
No. In a regular RD, the monthly amount is fixed for the full tenure. If you want to save more, you can open another RD.
Which is better: RD or SIP?
RD gives a fixed, guaranteed return and suits short-term goals. A SIP in equity mutual funds carries market risk but can grow much more over long periods.
Is RD interest taxable?
Yes. RD interest is added to your income and taxed at your slab rate. TDS may also be deducted above the prescribed limit.
Related calculators
- FD Calculator – grow a lump sum safely
- SIP Calculator – monthly investing in mutual funds
- Compare Investments – SIP vs Step-Up SIP vs RD