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Recurring Deposit (RD) Calculator – Monthly Savings Maturity Calculator

Calculate RD maturity amount with monthly deposits, interest earnings, and compare systematic savings versus lumpsum investment returns.

100% Accurate
Instant Calculation
Growth Comparison
Maturity Amount
₹6.34L

Investment Breakdown

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Calculate RD Maturity

Enter monthly deposit amount and tenure to calculate maturity value with interest

₹5,000
6.5%
5Y
Total Investment
₹3.00L
Interest Earned
₹53,423
RD vs Lumpsum Comparison

Compare recurring deposit returns with a one-time lumpsum investment of the same total amount.

Investment Comparison Summary

RD Maturity
₹3,53,423
Lumpsum Maturity
₹4,09,955
Investment Type Total Invested Interest Earned Maturity Amount Return %
Year-wise Growth Breakdown

Track how your RD investment and interest accumulate year by year.

Maturity Amount
₹3,53,423
Total Investment ₹3,00,000
Interest Earned ₹53,423
Effective Return 17.81%
Total Months 60 months

Smart Tips

RD is ideal for disciplined monthly savers who want guaranteed returns
Post Office RD offers tax benefits under Section 80C (up to ₹1.5L)
Most banks allow premature withdrawal after 3-6 months with penalty
Senior citizens get additional 0.5% interest rate in most banks
Interest is compounded quarterly in most RD schemes
RD is safer than equity but offers lower returns than mutual funds

Investment Breakdown

How to Use Recurring Deposit Calculator?

1

Enter Monthly Deposit

Input the amount you want to deposit every month into the RD account

2

Set Interest Rate

Enter the annual interest rate offered by your bank or post office

3

Choose Tenure

Select the RD duration in years (typically 1-10 years)

4

View Maturity Amount

Get instant calculation of maturity value, interest earned, and comparison with lumpsum investment

Key Features

Accurate RD Calculation

Uses standard quarterly compounding formula for precise maturity calculation

RD vs Lumpsum Comparison

Compare systematic monthly savings with one-time investment returns

Year-wise Growth Tracking

See how your investment and interest accumulate year by year

Visual Investment Breakdown

Interactive charts showing principal vs interest distribution

Multiple Compounding Options

Calculate with quarterly, monthly, half-yearly, or yearly compounding

Mobile Optimized

Works seamlessly on all devices with responsive design

Who Uses This Calculator?

Benefits of Recurring Deposits

Guaranteed Returns

Fixed interest rate ensures predictable maturity amount

Disciplined Savings

Mandatory monthly deposits build strong saving habits

Low Minimum Investment

Start with as little as ₹100-500 per month in most banks

Bank Security

Deposits insured up to ₹5 lakhs by DICGC for bank failures

Loan Against RD

Most banks offer loans up to 80-90% of RD balance

Tax Benefits

Post Office RD qualifies for Section 80C deduction (up to ₹1.5L)

Understanding Recurring Deposit Calculation

What is a Recurring Deposit?

A Recurring Deposit (RD) is a savings instrument offered by banks and post offices that allows individuals to deposit a fixed amount every month for a predetermined period. At maturity, you receive the total deposited amount plus accumulated interest. RD combines the discipline of systematic savings with the safety and predictability of fixed deposits, making it ideal for salaried individuals and conservative investors.

How is RD Maturity Calculated?

RD maturity is calculated using the compound interest formula: M = P × [(1 + r/n)^(nt) - 1] / (1 - (1 + r/n)^(-1/3)), where M is maturity amount, P is monthly deposit, r is annual interest rate, n is compounding frequency (usually 4 for quarterly), and t is tenure in years. Interest is typically compounded quarterly, meaning your deposits earn interest on interest every three months. The formula accounts for the fact that different monthly deposits are held for different durations.

RD vs Lumpsum Investment

A lumpsum investment of the same total amount (all monthly deposits invested upfront) will always yield higher returns than RD at the same interest rate because the entire amount earns interest for the full tenure. For example, investing ₹3,00,000 upfront will earn more than depositing ₹5,000/month for 60 months. However, RD has advantages: (1) No need for large upfront capital, (2) Disciplined monthly savings, (3) Rupee-cost averaging in market-linked RDs, (4) Lower financial burden. The calculator shows this comparison to help you understand the trade-off between convenience and returns.

Factors Affecting RD Returns

Types of Recurring Deposits

Tax Implications

Interest earned on RD is fully taxable as per your income tax slab. Banks deduct TDS (Tax Deducted at Source) at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below taxable limit. Post Office RD: Principal qualifies for 80C deduction (up to ₹1.5 lakh), but interest is still taxable. Unlike PPF, RD interest is not tax-free. For accurate tax planning, consult a chartered accountant.

Premature Withdrawal and Loan Facility

Most banks allow premature withdrawal after completing 3-6 months of the RD tenure. Penalty: interest rate reduced by 0.5-1%, and early withdrawal charges may apply. Loan Against RD: You can take a loan up to 80-90% of your RD balance (accumulated deposits + interest) at interest rates 1-2% higher than your RD rate. This facility allows emergency fund access without breaking the RD. Loan repayment doesn't affect monthly RD deposits, and you continue earning interest on the full RD amount.

Frequently Asked Questions

What is the minimum and maximum amount for RD?
Minimum monthly deposit varies by bank: typically ₹100-500 in public sector banks, ₹500-1,000 in private banks, and ₹100 in Post Office RD. There is no maximum limit - you can deposit any amount monthly. However, depositing more than ₹10 lakhs in a year requires PAN card submission. Some banks offer special RD schemes with higher minimum deposits (₹5,000+) that offer slightly better interest rates.
What happens if I miss a monthly RD payment?
Missing RD payments incurs late payment charges (typically ₹1-5 per month of delay). Most banks give a grace period of 3-4 months. If you miss 3-4 consecutive installments without depositing, the bank may close your RD account and return the accumulated amount with reduced interest (as per premature withdrawal terms). To avoid this, set up auto-debit from your savings account. Some banks allow advance payment of multiple installments if you anticipate missing payments.
Is RD better than FD for savings?
RD vs FD depends on your financial situation: Choose RD if: (1) You don't have lumpsum amount, (2) You want to save monthly from salary, (3) You're building financial discipline. Choose FD if: (1) You have lumpsum amount available, (2) You want maximum returns (FD earns more than RD at same rate), (3) You don't need monthly commitment. For most salaried individuals, RD is more practical as it allows systematic savings without needing large upfront capital. Ideally, use both: RD for monthly savings and FD for lumpsum bonuses/windfalls.
Can I have multiple RD accounts?
Yes, you can open multiple RD accounts in the same bank or different banks with no limit on the number of accounts. Many people maintain multiple RDs for different goals (child education, emergency fund, vacation, etc.) or to diversify across banks for safety (DICGC insures up to ₹5 lakhs per bank). However, managing multiple accounts requires discipline to ensure all monthly payments are made on time. Consider setting up auto-debit for each RD to avoid missing payments.
Which bank offers the highest RD interest rate?
As of 2026, RD interest rates vary by bank and tenure: Public Sector Banks: SBI, PNB, BOB offer 5.5-7% for general public, 6-7.5% for senior citizens. Private Banks: HDFC, ICICI, Axis offer 6-7.5%. Small Finance Banks: Ujjivan, Equitas, AU offer 7-8.5% (higher rates but verify bank credibility). Post Office RD: Currently 6.7% (5-year tenure) with 80C tax benefit. Rates change quarterly based on RBI policy. Always verify latest rates on bank websites before opening RD. Don't choose solely based on rate - consider bank stability, accessibility, and customer service.
Can I increase or decrease RD monthly amount mid-way?
No, most banks do not allow changing the monthly deposit amount once RD is opened. The installment amount is fixed for the entire tenure. Alternatives: (1) Close existing RD prematurely (with penalty) and open new RD with desired amount, (2) Open additional RD account with different amount alongside existing one, (3) Some banks offer "flexi-RD" schemes allowing variable deposits, but these are rare. Plan your monthly commitment carefully before opening RD based on your stable monthly surplus after all expenses.
Is RD a good investment compared to mutual funds?
RD and mutual funds serve different purposes: RD advantages: Capital protection, guaranteed returns (6-7%), no market risk, ideal for short-term goals (1-5 years). Mutual Fund (SIP) advantages: Higher potential returns (10-15% historically), inflation-beating growth, ideal for long-term goals (5+ years). Recommendation: Use RD for short-term goals and emergency funds. Use equity mutual fund SIPs for long-term wealth creation (retirement, child education 10+ years away). A balanced portfolio includes both: RD for safety and liquidity, mutual funds for growth and wealth creation.
What documents are required to open an RD account?
Required documents for opening RD account: (1) Identity Proof: Aadhaar card, PAN card, Voter ID, Passport, or Driving License, (2) Address Proof: Aadhaar, utility bills (electricity, water), bank statement, rent agreement, (3) Passport-size photographs: 2-3 recent photos, (4) Savings Account: RD requires savings account in the same bank (for monthly debits and maturity credit), (5) PAN Card: Mandatory if total annual deposits exceed ₹10 lakhs or interest exceeds TDS threshold. If you're an existing customer, minimal documentation needed - just RD application form with account details.

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Disclaimer: This calculator provides estimates based on the information you provide. Actual maturity amounts may vary based on bank-specific terms, compounding frequency, TDS deductions, and premature withdrawal penalties. The comparison with lumpsum investment is indicative and based on the same interest rate assumption. This tool is for informational purposes only and does not constitute financial advice. Interest rates are subject to change based on bank policies and RBI regulations. Please verify current rates with your bank or post office before opening an RD account. Tax implications depend on individual circumstances - consult a tax advisor for personalized guidance.