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1 RD Calculator — Recurring Deposit Maturity & Interest

RD Calculator — Recurring Deposit Maturity & Interest

Calculate your Recurring Deposit maturity amount. Works for all Indian bank RD schemes.

All BanksPost Office RDTax Implications

Visual Breakdown

RD Maturity

Deposited

Interest

RD vs FD vs Mutual Fund SIP

Aspect	RD	FD (Lumpsum)	Equity SIP
Investment Pattern	Fixed monthly	One-time lump-sum	Fixed monthly
Expected Return	6-7%	6-7%	10-13% (long-term)
Tax	Slab rate	Slab rate	12.5% LTCG above ₹1.25L
Volatility	None	None	High (short-term)
Liquidity	Premature with penalty	Premature with penalty	Anytime
Best Horizon	1-5 years	1-10 years	5+ years
Best For	Short-term goals, beginners	Conservative wealth preservation	Long-term wealth building

Verdict: RD is good for new earners learning savings discipline. Once habit is set, switch to equity SIP for long-term goals. RD's 6-7% post-tax becomes 4-5% — barely above inflation.

Post Office RD vs Bank RD

Feature	Bank RD	Post Office RD (5-yr)
Interest Rate	6-7%	6.7% (Q3 FY25)
Tenure	6 months - 10 years	5 years (extendable)
Minimum	₹100-500/month	₹100/month
Senior Citizen Bonus	+0.5%	NA (Same for all)
Premature Withdrawal	Allowed after 1 year (penalty)	Allowed after 1 year (with conditions)
Tax	Slab rate	Slab rate
Government Guarantee	DICGC ₹5L	Sovereign-backed (full)

RD Worked Examples

Example 1: ₹5,000/month RD, 5 Years, 6.5%

Total invested = ₹3 lakh. Maturity = ₹3.55 lakh. Interest earned = ₹55,000. Post-tax (20% slab): ₹44,000 net interest. Net maturity ≈ ₹3.44 lakh.

Example 2: ₹10,000/month RD, 3 Years, 7%

Total invested = ₹3.6 lakh. Maturity = ₹4.02 lakh. Interest earned = ₹42,000.

Example 3: RD vs Equity SIP (Long-Term)

₹10,000/month for 20 years. RD at 7%: Final ₹52 lakh, post-tax ₹46 lakh. Equity SIP at 12%: Final ₹99 lakh, post-tax (LTCG 12.5%) ~₹89 lakh. Equity SIP creates ₹43+ lakh more wealth for the same monthly contribution.

RD TDS & Tax

TDS is deducted on RD interest if annual interest from all RDs in same bank exceeds ₹40,000 (₹50,000 for seniors). Interest is taxable in the year it accrues, not when paid. Submit Form 15G/H to avoid TDS if income is below taxable. For 5-year Tax-Saver RDs (rare; some banks offer): up to ₹1.5L deductible under Section 80C in old regime.

More FAQs

Can I miss a month's RD instalment?

Most banks allow 1-3 missed instalments with penalty (typically ₹1-5 per ₹100 default). Beyond that, the RD may be closed. Auto-debit setup reduces this risk.

Is RD interest compounded quarterly or annually?

Most Indian banks: quarterly compounding. Post Office RD: quarterly. Effective annual yield is slightly higher than the nominal rate.

Can I increase RD instalment mid-way?

Most banks don't allow modification once RD is opened. Workaround: open a new RD with the additional amount, run both in parallel.

What is "Flexi RD"?

Some banks (ICICI Flexi Deposit, SBI Flexi RD) allow variable monthly instalments. Useful for irregular income earners. Interest may be slightly lower than fixed RD.

How is premature RD interest calculated?

If broken before tenure: interest paid at the rate applicable for the actual completed tenure (e.g., a 5-year RD broken at 2 years gets 2-year rate) MINUS premature penalty (0.5-1%). Often much lower than promised rate.

Are RDs good for kids?

RD-by-parent in minor's name (with PAN of parent) is fine. Better alternative for child's future: Sukanya Samriddhi (for girls) at 8%+ tax-free, or ELSS for boys/girls with longer horizons.

Online RD vs Branch RD?

Same rates. Online (Net Banking app) is faster and convenient. Branch needed only if you want passbook. Most banks now offer e-RD with downloadable certificate.

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