Recurring Deposit Calculator
Estimate the maturity and total interest on your monthly RD installments with quarterly compounding. Updated for FY 2025-26 India.
Calculate RD Maturity
What is a Recurring Deposit?
A Recurring Deposit (RD) is a fixed-tenure savings product where you deposit a chosen amount every month for a predetermined period (usually 6 months to 10 years). The bank or post office pays interest on each installment at the prevailing FD rate, compounded quarterly, and pays out the entire principal-plus-interest as a single lump sum at maturity.
RDs are designed for disciplined, goal-based saving — perfect for short-term targets like a vacation, gadget purchase, festive shopping, child's school fees, or building an emergency cushion. Since each installment earns interest only for its remaining tenure, the effective yield of an RD is slightly lower than a comparable lump-sum FD of the same rate and tenure, but the monthly commitment makes wealth-building automatic and effortless.
Key Features at a Glance
- Tenure: 6 months to 10 years (bank); 5 years standard (post office).
- Interest: Same as FD rates — 6%–7.5% for general; +0.25–0.75% for senior citizens.
- Compounding: Quarterly — same as FDs.
- Minimum installment: ₹100/month (bank and post office).
- Safety: Bank RDs insured by DICGC up to ₹5 lakh; post office RDs are sovereign-backed.
- Premature withdrawal: Allowed with a small penalty.
- Taxation: Interest fully taxable; TDS at 10% if interest exceeds ₹40,000 (₹50,000 senior).
How the Calculation Works
Because each monthly deposit earns interest only for its remaining tenure, the calculator sums the future value of every installment, compounded quarterly until maturity:
Maturity = Σ R × (1 + r/4)q
Where R = monthly installment, r = annual rate, q = quarters remaining for each installment until maturity.
Worked example: A ₹5,000/month RD for 1 year (12 installments) at 6% p.a. with quarterly compounding matures to approximately ₹61,964 — earning around ₹1,964 in interest on a total deposit of ₹60,000.
Tips for Maximising Your RD
- Choose the right tenure: Match the tenure to your goal (1–5 years for short-term, up to 10 years for medium-term).
- Compare bank rates: Smaller private banks and small finance banks often offer 0.5–1% higher rates than top-tier banks.
- Start early: Longer tenure means later installments still earn meaningful interest — the gap narrows vs FD.
- Senior citizen advantage: Open in a senior parent's name (if applicable) to lock in 0.25–0.75% extra.
- Tax planning: Split RDs across spouse/family if interest is likely to cross TDS thresholds.