RD Calculator
Calculate Recurring Deposit maturity amount
RD Details
Amount to deposit every month
Current RD rates: 6-7% p.a.
Common tenures: 12, 24, 36, 60 months
Tax Details
Duration: 60 months (5.0 years)
RD Maturity
Enter RD details and click Calculate
See your maturity amount and interest earned
Understanding Recurring Deposits (RD)
What is a Recurring Deposit?
A Recurring Deposit (RD) is a savings scheme where you deposit a fixed amount every month for a predetermined period. It combines the discipline of regular savings with the security of fixed deposits. RDs are ideal for people who want to build a corpus through regular small investments.
Key Features
- Fixed Monthly Deposit: Same amount deposited every month
- Tenure: 6 months to 10 years
- Interest Rate: Similar to FD rates, slightly lower
- Compounding: Quarterly compounding in most banks
- Minimum Amount: As low as Rs 100/month in some banks
RD Interest Calculation
Unlike FD where the entire principal earns interest from day one, in RD each monthly installment earns interest only for the remaining tenure. The first installment earns interest for the full tenure, while the last installment earns interest for just one month.
RD vs SIP
| Feature | RD | Mutual Fund SIP |
|---|---|---|
| Returns | Fixed (6-7%) | Market-linked (10-15%*) |
| Risk | Zero | Medium to High |
| Tenure | Fixed (6m-10yr) | Flexible |
| Premature Exit | Penalty applies | Anytime (exit load may apply) |
| Tax | Interest taxable at slab | LTCG/STCG rates |
*Past performance, not guaranteed
TDS on RD
- TDS is deducted if total interest from all deposits exceeds Rs 40,000/year (Rs 50,000 for seniors)
- Rate: 10% with PAN, 20% without PAN
- Submit Form 15G/15H to avoid TDS if income is below taxable limit
Current RD Rates (Indicative)
| Tenure | Regular | Senior Citizen |
|---|---|---|
| 6 months | 5.50% | 6.00% |
| 1 year | 6.80% | 7.30% |
| 2 years | 7.00% | 7.50% |
| 5 years | 6.50% | 7.00% |
Rates vary by bank. Check with your bank for current rates.
Who Should Invest in RD?
- Salaried individuals wanting disciplined savings
- Risk-averse investors seeking guaranteed returns
- Those saving for specific short-term goals
- People unable to invest a lumpsum amount
Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.
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