RD Calculator: Recurring Deposit Maturity Amount & Interest
A recurring deposit turns a fixed monthly saving into a guaranteed lump sum. See exactly what your RD will be worth at maturity.
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How RD Interest Is Calculated
Banks and the Post Office compound RD interest quarterly. Each monthly instalment earns interest only for the months it stays in the account, so the first deposit earns the most and the last one the least.
R = monthly deposit · i = annual rate ÷ 400 · n = number of quarters
Example: ₹5,000 a month at 7% for 5 years: you deposit ₹3,00,000 and receive ₹3,59,664, so ₹59,664 is interest.
RD Maturity at 7% Interest
| Monthly deposit | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| ₹1,000 | ₹12,462 | ₹40,137 | ₹71,933 | ₹1,73,702 |
| ₹2,000 | ₹24,924 | ₹80,275 | ₹1,43,866 | ₹3,47,403 |
| ₹5,000 | ₹62,311 | ₹2,00,686 | ₹3,59,664 | ₹8,68,509 |
| ₹10,000 | ₹1,24,621 | ₹4,01,373 | ₹7,19,328 | ₹17,37,017 |
RD vs FD vs SIP
| RD | FD | SIP (equity fund) | |
|---|---|---|---|
| How you invest | Fixed amount every month | One lump sum | Fixed amount every month |
| Returns | Fixed, set when you open it | Fixed, set when you open it | Market-linked, not guaranteed |
| Risk | Very low | Very low | Higher in the short term |
| Tax on returns | Slab rate on interest | Slab rate on interest | Capital gains tax |
| Best for | Saving a fixed amount for a 1–5 year goal | Parking money you already have | Long-term wealth (5+ years) |
An RD suits disciplined saving towards a known goal — a vacation, a gadget or a down payment — where you can’t afford market ups and downs. For goals more than five years away, an SIP has historically grown faster.
Things to Know Before Opening an RD
- The interest rate is locked in for the whole tenure, even if rates change later.
- Missing an instalment usually attracts a small penalty, and several missed instalments can close the account.
- Breaking an RD early is allowed at most banks, but the interest is usually reduced by about 1%.
- Interest is added to your income and taxed at your slab rate; banks deduct 10% TDS above ₹50,000 of interest a year (₹1 lakh for senior citizens).
Frequently Asked Questions
What is the maturity of ₹1,000 RD for 5 years?
At 7% it is about ₹71,933, on ₹60,000 deposited.
Is RD better than FD?
Both pay similar rates. Choose an FD if you already have a lump sum, and an RD if you want to save a fixed amount from your income each month.
Is RD interest taxable?
Yes. RD interest is taxed at your income-tax slab rate, and banks deduct TDS once interest crosses ₹50,000 in a year (₹1 lakh for senior citizens).
What is the minimum RD tenure?
Most banks offer RDs from 6 months to 10 years. The Post Office RD has a fixed 5-year tenure.