RD Calculator - Calculate Recurring Deposit Interest
Calculate the maturity value of your Recurring Deposit (RD). Plan your monthly savings and see how much interest you will earn.
Monthly Investment
Interest Rate
Time Period
Total Value
₹3,55,284
RD Calculator – Recurring Deposit Maturity Estimator
An RD Calculator helps you estimate the maturity value of your Recurring Deposit. By depositing a fixed amount every month, you can build a significant corpus over time with guaranteed returns.
A Recurring Deposit (RD) allows you to deposit a fixed amount every month with a bank, similar to a SIP but with guaranteed returns.
What is a RD Calculator?
The RD Calculator helps you estimate the maturity value of your regular savings.
It calculates the interest earned on your monthly deposits. Unlike FDs, the principal grows each month.
This calculator assumes monthly compounding to provide a close estimate of your maturity value.
How does this RD Calculator work?
The calculator uses the following formula:
M = P × [({(1+i)^n} - 1) / i] × (1+i)
- The formula calculates the future value of a series of monthly deposits.
- M is the maturity value.
- P is the monthly installment.
- n is the number of months.
- i is the monthly interest rate (Annual Rate / 12).
- Interest is compounded monthly to provide an accurate estimate.
How to use this RD Calculator effectively
- Enter your monthly deposit amount.
- Input the RD interest rate.
- Select the number of years.
- View the total interest earned and the final payout.
Commonly asked questions
What is a Recurring Deposit?
A Recurring Deposit (RD) is a term deposit offered by banks that allows people with regular incomes to deposit a fixed amount every month and earn interest at the rate applicable to Fixed Deposits.
How is RD interest calculated?
The interest on RD is compounded quarterly. The formula used is similar to that of compound interest.
What is the minimum deposit period?
The minimum tenure for an RD is usually 6 months.
What is the maximum deposit period?
The maximum tenure is typically 10 years.
Can I withdraw prematurely?
Yes, premature withdrawal is allowed, but banks usually charge a penalty of 1% to 2% on the interest.
Is RD interest taxable?
Yes, interest earned on RD is fully taxable. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
Can I change the monthly installment amount?
No, in a regular RD, the installment amount is fixed. However, some banks offer "Flexi RD" schemes where the amount can vary.
What happens if I miss an installment?
Banks may levy a penalty for missed installments, and the account may be closed if multiple installments are missed.
Do senior citizens get higher interest?
Yes, most banks offer an additional interest rate of 0.50% to senior citizens.
Can I take a loan against RD?
Yes, you can avail a loan or overdraft facility of up to 90% of the deposit balance.
Is nomination facility available?
Yes, nomination facility is available for RD accounts.
Can a minor open an RD account?
Yes, an RD can be opened in the name of a minor under the guardianship of a parent.
Is it safe?
Yes, RD in a scheduled bank is very safe and is covered by DICGC insurance up to ₹5 Lakh.
Can I open an RD online?
Yes, existing bank customers can easily open an RD account through net banking or mobile apps.
What is the minimum amount to start?
You can start an RD with a minimum amount as low as ₹100 or ₹500, depending on the bank.
Is the interest rate fixed?
Yes, the interest rate remains fixed for the entire tenure of the RD once opened.
Can I extend the tenure?
Usually, you cannot extend the tenure of an existing RD. You can open a new one upon maturity.
What is the difference between RD and SIP?
RD offers guaranteed returns with low risk, while SIP in mutual funds offers market-linked returns with higher risk and potential for higher growth.
Can NRIs open an RD?
Yes, NRIs can open NRE or NRO Recurring Deposit accounts.
Does Post Office offer RD?
Yes, Post Office RD is a popular scheme with a 5-year tenure and sovereign guarantee.