Recurring Deposit Calculator
Calculate your RD maturity amount, view detailed deposit schedule, and get personalized recommendations to optimize your savings strategy.
Updated with latest bank interest rates and tax regulations for
Why Use Our RD Calculator?
Accurate Calculations
Precisely calculate RD maturity amount
Visual Breakdowns
Interactive charts that show growth patterns
Smart Recommendations
Get AI-powered tips to optimize your savings
Detailed Schedule
View and download your full deposit table
Note: This tool provides savings planning assistance based on the information you provide.
Frequently Asked Questions about Recurring Deposits
A Recurring Deposit (RD) is a financial product offered by banks where you deposit a fixed amount monthly for a specified period. At maturity, you receive the principal amount plus interest accumulated over the term. It's ideal for individuals who want to save small amounts regularly and earn higher interest than a savings account.
Interest on a Recurring Deposit is typically calculated quarterly. The interest is calculated on the deposited amount at the end of each calendar quarter. The formula for RD interest calculation is:
Interest = P × r × (n × (n+1)) ÷ (2 × 12)
Where P is the monthly deposit amount, r is the annual interest rate, and n is the number of quarters.
Our calculator automates these complex calculations, providing you with accurate results instantly.
If you miss a monthly deposit, most banks charge a penalty, typically ranging from ₹1-2 per ₹100 per month. Some banks offer a grace period of 5-10 days. Multiple missed deposits may result in the bank converting your RD to a savings account or terminating it entirely.
Our calculator allows you to factor in missed deposits to get a more accurate maturity amount estimate.
Yes, most banks allow premature withdrawal of Recurring Deposits, but this usually incurs a penalty. The penalty typically ranges from 0.5% to 1% of the interest rate. Some banks may have minimum holding period requirements (usually 3-6 months) before allowing withdrawal.
It's important to note that early withdrawal may significantly reduce your returns due to the penalty and the loss of compound interest that would have accrued over the remaining term.
The key differences between a Recurring Deposit (RD) and a Fixed Deposit (FD) are:
- Deposit method: RDs allow periodic deposits (usually monthly), while FDs require a lump sum amount upfront.
- Interest rates: FDs typically offer slightly higher interest rates than RDs.
- Flexibility: RDs provide more flexibility as you can build your savings over time with smaller amounts.
- Ideal for: RDs are perfect for regular savers with monthly income, while FDs suit those who have a lump sum to invest.
Our calculator can help you estimate returns from your RD investments based on current interest rates.
The interest earned on Recurring Deposits is taxable as 'Income from Other Sources' in your income tax return. Points to note:
- TDS (Tax Deducted at Source) is applicable if the interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
- The TDS rate is 10% (7.5% temporarily due to COVID-19 relief).
- Even if TDS is not deducted, you are still liable to pay tax on the interest earned as per your income tax slab.
- There is no tax exemption under Section 80C for RD investments, unlike some other savings schemes.
Our recommendations section provides insights on tax efficiency based on your current investment profile.
The tenure for Recurring Deposits varies between banks, but generally:
- Minimum tenure: 6 months (some banks offer as low as 3 months)
- Maximum tenure: 10 years (120 months)
Most banks offer flexible tenure options in increments of 3 months or 6 months. Longer tenures typically offer higher interest rates. Our calculator allows you to experiment with different tenure periods to find the best option for your financial goals.
Understanding Recurring Deposits
Benefits of Recurring Deposits
- Disciplined Saving: The fixed monthly deposit commitment helps develop a savings habit
- Low Investment Threshold: Start with as little as ₹100 per month at most banks
- Guaranteed Returns: Fixed interest rates provide predictable returns, unlike market-linked investments
- Loan Facility: Many banks offer loans against RD accounts (typically up to 80-90% of the deposited amount)
- Low Risk: RDs are covered under deposit insurance for up to ₹5 lakhs by the DICGC
Current RD Interest Rates ()
| Bank | General Citizens (p.a.) | Senior Citizens (p.a.) |
|---|---|---|
| State Bank of India | 5.50% - 6.25% | 6.00% - 6.75% |
| HDFC Bank | 5.75% - 7.00% | 6.25% - 7.50% |
| ICICI Bank | 5.60% - 7.10% | 6.10% - 7.60% |
| Axis Bank | 5.75% - 7.25% | 6.25% - 7.75% |
| Post Office | 6.70% (fixed) | 6.70% (fixed) |
*Interest rates are subject to change. Last updated: June . Please check with the respective banks for the latest rates.
Important Disclaimer
The contents of the calculator report are meant solely for information and educational purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation. This calculator and its outputs should not be considered as financial advice. The calculations are based on the information you provide and various assumptions which may not reflect your personal situation accurately. We shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.