RD · May 2026

Grow Your Savings with Our Recurring Deposit Calculator for FY 2025-26

Plan RDs for FY 2025-26 with our Recurring Deposit Calculator. RDs encourage disciplined savings at fixed 6-7.5% returns (₹1,000+/month) — ideal for salaried individuals.

How It Works

Input monthly deposit, tenure, and interest rate. Example: ₹5,000/month at 7% for 5 years → ₹3.67L. Test 6-month to 10-year tenures.

Strategies

RD interest is taxable per slab. Premature withdrawal: 0.5-1% penalty. Estimate RD →

Frequently Asked Questions

What is the minimum amount needed to open a recurring deposit?
Most banks and post offices allow an RD to start from ₹1,000 per month, with deposits in multiples above that. Because the instalment is fixed for the full tenure, pick an amount you can sustain every month — missing instalments usually attracts a small penalty and can cause the account to lapse if repeated.
What return can I expect on a recurring deposit right now?
RD rates generally sit in the 6–7.5% band. Post Office RDs have been at the top of that range for 5-year tenures, while large private banks such as HDFC have typically offered 6.5–7%. Senior citizens usually receive an additional 0.25–0.5% on the applicable rate.
How much does a ₹5,000 monthly RD grow to?
At 7% for five years, a ₹5,000 monthly RD matures at roughly ₹3.67 lakh — about ₹3 lakh of your own deposits plus interest. Run your own instalment, rate and tenure through the Recurring Deposit Calculator to see the split between principal and interest.
Is RD interest taxable in India?
Yes. RD interest is fully taxable and is added to your income, then taxed at your applicable slab rate. Unlike equity investments there is no separate concessional rate, so the effective post-tax return is meaningfully lower for anyone in the higher slabs.
What happens if I withdraw an RD before maturity?
Premature closure is allowed but typically costs a penalty of 0.5–1%, applied by reducing the interest rate paid on the deposit. If there is any chance you will need the money early, a shorter 1–2 year RD is usually a better fit than breaking a 5-year one.
Should I choose an RD or a lump-sum fixed deposit?
An RD suits money you earn monthly and want to set aside as it arrives; an FD suits money you already hold. For a fixed goal amount, an FD funded upfront earns more total interest because the full sum compounds from day one, while an RD's later instalments compound for less time.

Related Guides

Save More on Rent Master Your Taxes Understanding Capital Gains Tax in FY 2025-26 Retirement Planning Strategies for FY 2025-26 Smart Loan EMI Planning for FY 2025-26 Plan Your Fixed Deposits Wisely

Try the Calculators

FD Calculator RD Calculator PPF Calculator Compound Interest