Calculators · Recurring deposit
Small deposits, counted precisely.
A recurring deposit turns a fixed monthly saving into a lump sum. Enter your monthly amount, rate and tenure to see the maturity value with bank-standard quarterly compounding.
How RD interest works
Each monthly deposit earns quarterly-compounded interest for the time it stays invested — the first instalment compounds for the full tenure, the last for just a month. ₹10,000 a month at 7% for 5 years grows to about ₹7.20 Lakhs on ₹6 Lakhs deposited.
RD rates track FD rates at the same bank, with the same senior-citizen bonus. Interest is taxable at your slab and TDS applies past the annual threshold.
RD, SIP, or paying off debt?
An RD suits guaranteed short-horizon goals; a SIP in equity funds has historically returned more over 5+ year horizons but with market risk. And if you're carrying a loan above ~10% interest, prepaying it is usually the best "investment" of all — a guaranteed return equal to your loan rate.
Common questions.
How is RD maturity calculated?
Each monthly instalment earns quarterly-compounded interest for its remaining tenure, and the maturity value is the sum. ₹5,000 monthly at 7% for 3 years matures at about ₹2.01 Lakhs on ₹1.8 Lakhs deposited.
Is RD better than FD?
They serve different needs: FD for a lumpsum you already have, RD for building savings monthly. Rates are nearly identical at the same bank.
Can I miss an RD instalment?
Banks charge a small penalty for missed instalments and may close the RD after consecutive defaults. Choose a monthly amount you can sustain.
Is RD interest taxable?
Yes — taxed at your slab rate, with TDS once interest crosses the annual threshold, same as FDs.