Recurring Deposit (RD) Calculator
Calculate maturity value and interest earned on disciplined monthly recurring deposits across Indian banks and Post Office.
Total Deposited: ₹72,000 • Interest Earned: ₹8,275
How to Use the RD Calculator
Enter Monthly Deposit
Specify how much you will deposit every month (e.g., ₹2,000).
Choose Rate & Tenure
Select the annual interest rate and total duration in months or years.
Review Maturity Sum
Check your total invested principal and final maturity payout.
A Recurring Deposit functions like an installment fixed deposit: each monthly deposit earns interest for the remaining fraction of the year and compounds quarterly in accordance with Indian banking norms.
Guide to Bank & Post Office Recurring Deposits (RD) in India
A Recurring Deposit (RD) is an ideal savings vehicle for individuals with regular monthly income who want to build a guaranteed cash reserve without exposing their savings to stock market risk. By depositing a fixed amount every month for a chosen tenure (typically 6 months to 10 years), savers earn interest comparable to fixed deposits.
The Post Office 5-Year Recurring Deposit Scheme is particularly popular across suburban and rural India due to its sovereign government guarantee, attractive interest rates, and loan facilities available against accumulated balances after one year.
Unlike mutual fund SIPs where returns depend on market fluctuations, an RD locks in your guaranteed interest rate for the entire tenure on the day you open the account, providing absolute predictability for targeted short-term financial goals like festival spending, education fees, or travel.
Standard Recurring Deposit Parameters & Banking Regulations
| Parameter / Concept | Formula or Rule | Practical Example |
|---|---|---|
| Tenure Range | 6 Months to 10 Years (Multiples of 3 months) | Post office RD is fixed at 5 years |
| Minimum Monthly Deposit | Starting from ₹100/month | No upper limit on deposit amount |
| Compounding Method | Quarterly Compounding (RBI Standard) | Compounded every 3 calendar months |
| TDS Applicability | TDS applies if total annual interest > ₹40,000 | Combined with FD interest for threshold |
Practical Tips & Common Traps to Avoid
Banks levy a small penalty (e.g., ₹1.50 per ₹100) for missed monthly RD installments. Always schedule auto-debit on salary day.
When central banks near the peak of a rate hike cycle, opening a 3 to 5-year RD locks in high interest before rates decline.
Keep at least 2 months expenses in savings before locking monthly cash flows into multi-year recurring deposits.
Frequently Asked Questions
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