RD Calculator
Estimate the maturity value of a Recurring Deposit at any bank or post office tenure.
Inputs
Maturity value
Yearly growth
A Recurring Deposit lets you invest a fixed amount every month into a single deposit account that earns interest, compounded quarterly. RDs are popular for short term goals because they enforce a savings habit and offer slightly higher returns than a savings account.
How RD interest works
Each monthly deposit earns interest from the date it is paid in until the maturity date. So your first deposit earns interest for the full tenure, while the last deposit earns interest for only one month. Interest is compounded quarterly at the rate offered by the bank or post office.
Worked example
A monthly RD of ₹5,000 for 5 years at 6.5 percent matures to roughly ₹3,55,000. Total deposits add up to ₹3,00,000 and the interest earned is around ₹55,000.
Use cases
RDs work well for predictable, short to medium term goals such as a vehicle down payment, a wedding contribution, or yearly insurance premiums. They are not ideal for long term wealth building because the post tax returns barely beat inflation.
Frequently asked questions
Yes. RD interest is added to your total income and taxed at your slab rate. TDS rules are similar to those for fixed deposits.
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