Recurring Deposit (RD) Calculator
Calculate your RD maturity amount, total interest, and yearly breakdown with monthly deposits. Free RD calculator with growth charts and shareable results.
About This Calculator
A Recurring Deposit (RD) is a term deposit offered by banks and post offices that allows customers to deposit a fixed amount every month and earn interest at rates comparable to Fixed Deposits. RD is one of the most popular savings instruments in India and other countries for building a disciplined savings habit with guaranteed returns. Investors can start with as little as ₹100 per month and choose a tenure ranging from 6 months to 10 years.
Our RD calculator helps you calculate the maturity amount based on your monthly deposit, interest rate, and tenure. It uses the standard RD formula with monthly compounding to provide accurate projections. The calculator also generates a yearly breakdown showing how your deposits, interest, and maturity value grow over time, plus interactive charts for visual analysis.
RD Formula:
M = P x [((1+r)^n - 1) / r] x (1+r)
Where:
- M: Maturity amount at the end of tenure
- P: Monthly deposit amount
- r: Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n: Number of monthly deposits (tenure in years x 12)
Features:
- Interactive growth chart showing deposits vs maturity value over time
- Doughnut chart breakdown of total investment vs total interest earned
- Yearly breakdown table with deposits, maturity value, and interest per year
- Shareable calculation links via URL parameters
- Auto-calculation when opening a shared link with all inputs filled
- Region-aware defaults for India (INR), United States (USD), and United Kingdom (GBP)
Regional Notes:
- India: RD rates range from 5.5% to 7.5% for general citizens. Post Office RD offers 6.50% with Section 80C tax benefits up to ₹1.5 lakh/year. TDS applies at 10% if interest exceeds ₹40,000/year.
- United States: RDs are less common in the US; similar products include Share Certificates from credit unions or CD ladders. Rates typically range from 2% to 5% APY depending on term length.
- United Kingdom: Regular savings accounts offered by UK banks function similarly to RDs, with rates ranging from 2.5% to 5.5%. Some accounts limit monthly deposits and offer fixed rates for 12-month terms.
Frequently Asked Questions
What is RD and how does it work?
RD (Recurring Deposit) is a savings scheme where you deposit a fixed amount monthly for a predetermined period (6 months to 10 years). Interest is compounded monthly, and you receive the maturity amount (principal + interest) at the end. RD is ideal for building a savings habit with guaranteed returns backed by banks or post office.
How is RD maturity amount calculated?
RD maturity is calculated using the formula: M = P x [((1+r)^n - 1) / r] x (1+r), where P is monthly deposit, r is monthly interest rate (annual rate ÷ 12), and n is number of months. Interest is compounded monthly. Our calculator does this automatically - just enter your monthly deposit, tenure, and interest rate.
What is the current RD interest rate in India?
RD interest rates in India range from 5.5% to 7.5% for general citizens and 6.0% to 8.0% for senior citizens. SBI offers 6.50%, HDFC Bank 7.00%, ICICI Bank 6.50%, and Post Office RD 6.50% for 5-year tenure. Small finance banks offer higher rates up to 8.5%.
Which bank offers the highest RD interest rate?
Small finance banks like AU Small Finance Bank, Ujjivan, and Equitas typically offer the highest RD rates (7.5-8.5%). Among major banks, HDFC Bank and Axis Bank offer competitive rates around 7%. Post Office RD is also popular at 6.50% with tax benefits under Section 80C up to ₹1.5 lakh per year.
Is RD better than FD?
RD is better for those who want to build savings gradually with monthly deposits. FD offers slightly higher rates and is better for lump sum investments. RD builds discipline through regular deposits, while FD provides immediate full interest benefit. Both offer similar safety and tax treatment. Choose based on your cash flow.
What is the minimum amount for RD?
Minimum RD investment varies by bank: Most banks: ₹100 per month, Some banks: ₹500 per month, Post Office RD: ₹100 per month. There's no maximum limit. You can start with as little as ₹100 and increase your deposit amount over time as your income grows.
Can I withdraw RD before maturity?
Yes, you can prematurely withdraw RD but with penalty. Premature withdrawal penalty is typically 0.5-1% of the interest rate. For example, if RD rate is 7%, you'll get 6-6.5% on premature withdrawal. Some banks waive penalty for senior citizens or in emergencies. Consider liquidity needs before choosing tenure.
What are the tax implications of RD?
RD interest is fully taxable as 'Income from Other Sources' at your slab rate. TDS is deducted at 10% if interest exceeds ₹40,000/year (₹50,000 for seniors). Post Office RD offers tax deduction under Section 80C up to ₹1.5 lakh/year. Submit Form 15G/15H to avoid TDS if total income is below taxable limit.
Can I take loan against my RD?
Yes, most banks allow you to take a loan against your RD deposit. You can typically get a loan up to 90% of your RD balance. The loan interest rate is usually 1-2% above the RD rate. This is useful for emergencies without breaking your RD and losing interest. Repayment terms vary by bank.
How much should I invest in RD monthly?
Invest based on your goals and capacity. For short-term goals (1-2 years), invest 10-20% of monthly income. For medium-term goals (3-5 years), invest 15-25%. Start with ₹1,000-2,000 monthly and increase as income grows. Our calculator helps you see how different monthly amounts grow over time.