RD calculator

A recurring deposit (RD) lets you save a fixed amount every month for a chosen tenure, earning a fixed rate of interest. It suits salaried savers who want to build a corpus from regular monthly contributions rather than a single lump sum, with the same capital safety as a fixed deposit.

Each monthly deposit earns interest for the months remaining until maturity, and the interest compounds. This calculator compounds monthly: every instalment is added and the balance grows each month. So ₹5,000 a month at 7% for a year matures to roughly ₹62,300 — about ₹2,300 of interest on ₹60,000 deposited.

Yes. Like FD interest, RD interest is fully taxable at your income-tax slab rate, and TDS at 10% applies if your total deposit interest with the bank exceeds ₹40,000 a year (₹50,000 for senior citizens). The maturity shown is before tax.

An RD gives guaranteed, fixed returns with no market risk, ideal for short-term goals and capital safety. A SIP in mutual funds can earn higher returns over the long term but fluctuates with the market. Risk-averse savers and short horizons favour RD; long horizons and higher return potential favour SIP — compare with our SIP calculator.

Most banks charge a small penalty for a missed or late instalment and may reduce the maturity slightly. Repeated defaults can lead the bank to close the RD prematurely. Setting up an auto-debit avoids this and keeps the projected maturity on track.

Premature closure is usually allowed but attracts a penalty and a lower effective interest rate for the period held. RDs are best treated as a commitment for the full tenure; if you need flexibility, keep an emergency buffer separately.