Calculate your Recurring Deposit maturity amount and total interest earned.
This tool calculates the maturity value of a Recurring Deposit (RD) — a savings instrument common in India where a fixed amount is deposited monthly for a set tenure and earns compound interest. It's used to plan and estimate returns on regular monthly savings.
Maturity Value = P × n + P × n(n+1)/2 × r/(4×12), using quarterly compounding as commonly applied by Indian banks, where P is the monthly deposit, n is the number of months, and r is the annual interest rate — the exact formula can vary slightly by bank's compounding convention.
Enter your monthly deposit amount, the interest rate offered, and the tenure (in months or years), and the calculator returns the estimated maturity value at the end of the term.
Example: Depositing ₹5,000 monthly for 5 years (60 months) at 6.5% annual interest would grow to a maturity value notably higher than the total deposits alone (₹3,00,000), due to compound interest earned throughout the tenure.
An RD involves depositing a fixed amount every month over the tenure, while an FD involves depositing one lump sum upfront — RDs suit people building savings gradually, while FDs suit those with a lump sum to invest at once.
Yes, most Indian banks compound RD interest quarterly, though the exact compounding frequency can vary slightly by bank, which affects the precise maturity value calculation.
Premature withdrawal is usually allowed but typically comes with a penalty (often a reduced interest rate), so it's generally best to choose a tenure you're confident you can maintain without needing early access.
Yes, in India, interest earned on RDs is generally taxable as per the depositor's income tax slab, and banks may deduct TDS (Tax Deducted at Source) if interest exceeds a specified threshold in a financial year.
RDs offer disciplined monthly saving with guaranteed, predictable returns and low risk, making them a popular choice for conservative savers building toward a specific short-to-medium-term goal.
A Recurring Deposit (RD) is a savings instrument, common in Indian banking, where you commit to depositing a fixed amount every month for a set tenure, and in return, the bank pays interest on the accumulating balance, typically compounded quarterly. Unlike a lump-sum fixed deposit where the entire amount earns interest from day one, an RD's interest calculation is more layered, since each new monthly deposit only starts earning interest from the point it's added.
Recurring deposits are popular precisely because they build a savings habit through fixed, regular contributions rather than requiring a large lump sum upfront, making them accessible to salaried individuals who prefer to set aside a manageable amount each month. Because the interest rate is fixed for the entire tenure at the time you open the RD, you also get a predictable, guaranteed return, which appeals to savers who prioritize capital safety and certainty.
This calculator lets you see, before committing to an RD, exactly how much your monthly deposits will grow to by maturity, given a specific monthly deposit amount, interest rate, and tenure — useful for comparing different RD schemes from various banks, or for figuring out what monthly deposit amount you'd need to commit to reach a specific savings target by a certain date. Since RD interest rates vary between banks, running a few different scenarios can help you make a more informed choice.
Compared to a fixed deposit, an RD suits people who want to build savings gradually rather than depositing a large sum upfront, while compared to a SIP in mutual funds, an RD offers more predictable, guaranteed returns but typically lower long-term growth potential since it doesn't carry market-linked upside. Choosing between these options generally comes down to your priority between guaranteed safety and potentially higher, but less certain, long-term returns.
Interest earned on a Recurring Deposit is generally taxable as per your applicable income tax slab, and banks typically deduct tax at source (TDS) once your total interest income crosses a specified threshold in a financial year. It's worth factoring this tax treatment into your planning, since the effective return on an RD after accounting for tax can be noticeably lower than the quoted interest rate, especially for savers in a higher tax bracket.
Most banks charge a small penalty for missed or delayed RD installments, and repeated defaults can sometimes affect the maturity value or even lead to premature closure of the account, so it's worth setting up automatic transfers to avoid accidentally missing a monthly deposit.
How does a recurring deposit differ from a fixed deposit in terms of contribution structure? A recurring deposit involves committing to regular fixed monthly contributions over the term, while a fixed deposit involves a single lump-sum deposit upfront, making RDs more accessible for building savings gradually from regular income.
What happens if a monthly RD installment is missed? Most banks charge a small penalty fee for missed or delayed installments, and consistently missing payments can affect the final maturity value, so maintaining regular contributions is important for maximizing the benefit of a recurring deposit.