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.
How is an RD different from a Fixed Deposit (FD)? 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.
Is RD interest compounded, and how often? 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.
Can I withdraw from an RD before maturity? 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.
Is RD interest taxable? 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.
Why might someone choose an RD over other savings options? 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.