Calculates RD maturity using the standard formula Indian banks publish for quarterly-compounded recurring deposits — with a Senior Citizen rate bump, a TDS estimate, and a year-wise growth schedule.
| Year | Total Deposited | Interest Earned | Balance |
|---|
Key Takeaways
- An RD is a monthly savings habit locked into a bank's fixed rate, unlike an FD (one lump sum upfront) or a SIP (monthly amount invested in market-linked mutual funds) — each suits a different situation.
- Interest compounds quarterly even though deposits are monthly, which is why RD maturity uses a specific formula rather than simple compound interest — deposits made partway through a quarter are blended into that quarter's compounding in a standard way banks have published for decades.
- RD interest is fully taxable and can have TDS deducted, the same as FD interest — once your total interest from one bank crosses INR 40,000 in a financial year (INR 50,000 for senior citizens), the bank deducts tax at source.
What This RD Calculator Does
This calculator projects the maturity value of an Indian bank Recurring Deposit, where you commit to depositing a fixed amount every month for a fixed tenure. It uses the standard formula Indian banks publish for RD maturity, which accounts for interest compounding quarterly even though your deposits happen monthly — a different, more involved calculation than a simple monthly SIP or a lump-sum FD. A Senior Citizen toggle adds the typical 0.5 percentage point rate bonus most banks offer, and a TDS estimate flags whether your interest is likely to cross the threshold at which the bank deducts tax at source. A year-wise schedule shows how your deposits and interest build up toward the final maturity value.
Everything runs entirely in your browser. No installment amount, rate, or tenure you enter is sent to a server, logged, or stored anywhere — close the tab and it's gone. There's no signup, no email wall, and no ads inside the calculator itself. Real bank rates, senior citizen bonuses, and TDS rules change over time and vary by bank — use this to compare scenarios and sanity-check a quote, not as a substitute for your bank's official RD receipt.
How to Use This RD Calculator
1. Basic RD
- Enter your Monthly Installment and Interest Rate.
- Enter the Tenure in years and months.
- Read the Maturity Value, total invested, and interest earned.
2. Senior Citizen & TDS
- Tick Senior Citizen to add the rate bonus (default 0.5%).
- Tick or untick PAN provided to switch the TDS rate between 10% and 20%.
- Check the TDS box for an estimate of tax likely deducted at source.
3. Track the Growth Schedule
- Click View Year-wise Growth Schedule.
- See total deposited, interest earned, and running balance at the end of each year.
- Use Download as .txt to save your result for reference.
The RD Maturity Formula, Explained
Because deposits happen monthly but Indian banks compound RD interest quarterly, the maturity formula is more involved than plain compound interest:
M = R × [(1 + i)n − 1] / [1 − (1 + i)(-1/3)]
Where M is the maturity value, R is the fixed monthly deposit, i is the quarterly interest rate as a decimal (annual rate ÷ 400), and n is the number of quarters (tenure in months ÷ 3).
Worked example: Monthly deposit R = INR 5,000, annual rate 7%, tenure 12 months.
- Quarterly rate: i = 7 / 400 = 0.0175
- Number of quarters: n = 12 / 3 = 4
- (1.0175)4 ≈ 1.07186; (1.0175)(-1/3) ≈ 0.99422
- M = 5,000 × [(1.07186 − 1) / (1 − 0.99422)] ≈ INR 62,311
Total deposited over the year is INR 60,000, so the interest earned is about INR 2,311 — a modest amount because a recurring deposit only holds each month's contribution for part of the full tenure, unlike a lump-sum FD where the entire principal earns interest from day one.
RD Maturity Reference Table
Illustrative maturity values at a representative 7% p.a. (7.5% for the 24-month row) across common monthly amounts and tenures. Actual bank rates vary and often differ by tenure band — treat this as a reference, not a quote.
| Monthly Installment | Rate | Tenure | Total Invested | Maturity Value |
|---|---|---|---|---|
| INR 5,000 | 7% | 12 months | INR 60,000 | INR 62,311 |
| INR 10,000 | 7.5% | 24 months | INR 2,40,000 (2.4 Lakh) | INR 2,59,553 (2.60 Lakh) |
| INR 15,000 | 7% | 36 months | INR 5,40,000 (5.4 Lakh) | INR 6,02,059 (6.02 Lakh) |
| INR 2,000 | 6.5% | 60 months | INR 1,20,000 (1.2 Lakh) | INR 1,41,982 (1.42 Lakh) |
Quick Definitions
Recurring Deposit (RD) is a bank savings product where a fixed amount is deposited every month for a fixed tenure at a pre-agreed interest rate, with the full amount plus interest paid out at maturity. It differs from a Fixed Deposit (FD), which takes one lump sum upfront, and from a SIP, which invests a fixed monthly amount into market-linked mutual funds rather than a bank's fixed-rate product.
Frequently Asked Questions
Because RD deposits happen monthly but Indian banks compound interest quarterly, each monthly deposit spends a different amount of time inside a compounding quarter. The published RD formula accounts for this blending mathematically rather than treating every deposit as if it earned interest identically.
Most banks charge a small penalty per missed or delayed installment, typically a modest fixed fee or a percentage of the installment amount, and may adjust it against the maturity payout. Exact penalty terms vary by bank, so check your specific RD's terms and conditions.
An FD suits a lump sum you already have and want to lock in at today's rate. An RD suits building savings gradually from monthly income when you don't have a lump sum upfront. Rates are often similar for the same tenure at the same bank, so the real difference is about the shape of your cash flow, not returns.
An RD gives a fixed, guaranteed bank interest rate with no market risk. A SIP invests in mutual funds whose returns are market-linked and not guaranteed, but which have historically outpaced RD rates over long horizons, at the cost of short-term volatility. The right choice depends on your risk tolerance and time horizon.
Yes. RD interest falls under the same Section 194A rules as FD interest — commonly cited figures are a INR 40,000 threshold (INR 50,000 for senior citizens) per bank per financial year, with TDS at 10% if PAN is on record or 20% if it isn't. Confirm current figures with your bank or a tax advisor.
No. Every calculation runs locally in your browser using JavaScript; nothing you enter is transmitted to any server, logged, or saved once you close or refresh the page.