Recurring Deposit Calculator
Calculate your recurring deposit maturity amount
Use our RD Calculator to estimate your maturity amount with different compounding frequencies. Compare monthly and quarterly compounding options.
RD CALCULATOR
All About Recurring Deposits
What is a Recurring Deposit?
A Recurring Deposit (RD) is a special term deposit offered by banks where you deposit a fixed amount every month for a predetermined tenure. The deposit earns interest and the total amount is paid at maturity.
How RD Interest Works
RD interest is compounded quarterly in most banks. The interest is calculated on each monthly deposit separately, based on the remaining tenure of the deposit.
RD vs FD Comparison
Unlike Fixed Deposits where you invest a lump sum, RDs allow you to invest smaller amounts monthly. RDs typically offer slightly lower interest rates than FDs but provide disciplined savings.
Taxation on RDs
Interest earned on RDs is fully taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
Frequently Asked Questions
RD Investment Tips
- Start with an amount you can consistently deposit every month without strain
- Compare RD interest rates across different banks before investing
- Consider the compounding frequency - quarterly compounding typically gives better returns
- Use the RD maturity amount for specific financial goals like education or vacation
- Senior citizens often get 0.25-0.50% higher interest rates on RDs