RD Calculator — Recurring Deposit Maturity
Compute recurring deposit maturity with the Indian quarterly-compounding standard. Each month's deposit grows separately for the months it stays in the account.
Year-by-year
Cumulative deposits and account value at the end of each year.
| Year | Total deposited | Account value | Interest so far |
|---|---|---|---|
| 1 | ₹60,000 | ₹62,311 | +₹2,311 |
| 2 | ₹1,20,000 | ₹1,29,099 | +₹9,099 |
| 3 | ₹1,80,000 | ₹2,00,686 | +₹20,686 |
| 4 | ₹2,40,000 | ₹2,77,418 | +₹37,418 |
| 5 | ₹3,00,000 | ₹3,59,664 | +₹59,664 |
About this tool
A recurring deposit is a savings instrument where you commit to depositing a fixed amount every month for a fixed tenure, in return for FD-like interest rates. Indian banks compound RD interest quarterly — each quarter the accrued interest on every deposit so far is added to the running balance, and subsequent interest is calculated on the higher base.
WRRK's RD calculator runs the exact per-deposit compound formula rather than the simplified annuity approximation many calculators use. Each month's deposit is grown for the months remaining until maturity, and the per-deposit values are summed. This matches the method banks themselves use, with differences only at the rounding-rule level. Useful for goal-based saving — wedding, foreign trip, school fees — where you want a known corpus at a known date.
Note: this is a pre-tax number. RD interest is taxable at your slab rate, and TDS applies at 10% once your total interest from one bank crosses ₹40,000 in a year (₹50,000 for senior citizens). Post-office RDs don't have TDS but are still taxable. For long-term goals past 5 years, equity SIPs typically beat RDs; for short-term certainty, RDs remain a strong choice.
How to use (5 steps)
- Enter monthly deposit. The fixed amount you'll deposit each month. Most banks accept ₹100 minimum; post office starts at ₹100.
- Enter rate. The annual interest rate from your bank or post office. Senior citizens get 0.25-0.50% extra in most banks.
- Set tenure. Years and additional months. Bank RDs go from 6 months to 10 years; post-office RD is fixed at 5 years (extendable).
- Read maturity. Right panel shows maturity value, total invested (= monthly × months), and total interest earned.
- Inspect year-by-year. The table below shows cumulative deposits and account value at the end of each year, so you can see how compounding accelerates over time.
Frequently asked questions
+−How is tax on RD interest calculated?
Just like FD interest, RD interest is fully taxable as 'Income from Other Sources' at your marginal slab rate. There's no special exemption — if you fall in the 20% slab, ₹10,000 of RD interest costs ₹2,000 in tax (plus 4% cess). The maturity value shown by this calculator is pre-tax.
+−When does TDS apply on RD interest?
Banks deduct TDS at 10% if total interest from one bank crosses ₹40,000 in a financial year (₹50,000 for senior citizens). TDS is 20% if PAN is not furnished. Form 15G/15H stops TDS if your total income is below the taxable limit. Post-office RD interest is not subject to TDS but is still taxable in your ITR.
+−Can I withdraw early?
Yes, with a penalty. Most banks allow premature closure after 3 months but apply a 1-2% rate cut on the actual completed tenure. So if you booked an RD at 7% for 5 years and break it after 2 years, you'll get the 2-year card rate minus a 1% penalty. Skipping a monthly instalment usually attracts a small per-default fine (₹1-10).
+−Bank RD vs Post-office RD — which is better?
Post-office RD has a fixed 5-year tenure and a government-set rate (revised quarterly, typically 6.7-7.5% as of 2025-26). Bank RDs offer more flexibility (6 months to 10 years) and rates that often match or beat post-office, especially for senior citizens. Post-office RDs cannot be transferred between people and have stricter pre-closure rules.
+−RD vs SIP — which earns more?
Over short horizons (1-3 years) an RD's guaranteed 6.5-7.5% can match a moderate-risk SIP. Over 5+ years, an equity SIP historically earns 10-14% but with volatility. RDs are best for known short-term goals with a guaranteed corpus; SIPs are better for long-term wealth where you can ride out market cycles.
+−Can I change my monthly deposit later?
Most banks fix your monthly RD instalment for the entire tenure — you can't increase or decrease it mid-stream. To change, you usually have to close the existing RD and start a new one. Some banks now offer 'flexi RDs' where the monthly deposit can vary within a min-max range; check your bank's specific product.
+−Why does my bank's maturity figure differ slightly?
Banks compound on calendar quarters and use day-count conventions; this calculator uses a clean per-month equivalent of quarterly compounding. The two will agree to within ~0.5% on a 5-year RD. The actual figure on your passbook depends on the deposit date alignment with the bank's quarter-end.
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