RD Calculator
Recurring deposit maturity
Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026
How to use: Enter your monthly deposit, the bank's rate, and the tenure.
Example₹5,000/month at 7% for 5 years → about ₹3.59 lakh
Bank RDs ~6.5–7.5%
Maturity value after 5 years
₹3,59,664
Total deposited
₹3,00,000
Interest earned
₹59,664
Compounded quarterly, as Indian banks do.
Growth over time
Popular RD plans
A recurring deposit lets you save a fixed amount every month at a guaranteed rate. Interest compounds quarterly, and because each instalment compounds for a different length of time, the maturity is a bit more than simply rate × total deposited.
This one takes any rate and any term, which is what a bank RD gives you. If you are saving through the post office instead, the maturity maths is identical but the scheme rules are not: the rate is set by the government and reset every quarter, the term is fixed at five years, there is a formal fee for a missed instalment and a rebate for paying ahead, and you cannot close the account for the first three years. That page prices those.
Each monthly instalment is compounded quarterly for the months it stays invested — the standard recurring-deposit method Indian banks use under RBI's interest-on-deposits framework.
- Interest is taxable and may attract TDS.
- Assumes every instalment is paid on time at a fixed rate.
- How is RD interest calculated?
- Banks compound recurring-deposit interest quarterly. Each monthly deposit earns interest for the remaining months, so earlier deposits earn more. This calculator uses the standard quarterly-compounding formula banks use.
- Is RD interest taxable?
- Yes, it's added to your income and taxed at your slab. Banks deduct 10% TDS if total interest from that bank crosses ₹50,000 a year (₹1 lakh for senior citizens).
- RD vs SIP — which is better?
- RD gives a fixed, guaranteed return and is very safe. A SIP in mutual funds can earn more over the long run but carries market risk. RD suits short-term, capital-protected goals.
- Can I miss an RD instalment?
- Most banks charge a small penalty for missed instalments and may close the RD after several misses. This calculator assumes every instalment is paid on time.
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