A Recurring Deposit (RD) helps you accumulate a significant corpus over time by investing a fixed amount every month. Our RD Calculator uses the standard Indian quarterly compounding formula to give you precise maturity amounts instantly.
What is a Recurring Deposit?
An RD is a term deposit offered by Indian banks and the Post Office that allows individuals to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to Fixed Deposits.
Formula
Frequently Asked Questions
An RD is a deposit scheme where you pay a fixed amount every month for a set tenure, and earn compounding interest similar to FDs, receiving the total accumulated sum on maturity.
Bank RD rates generally align with their FD rates, hovering between 6.5% to 7.5% annually. Post Office recurring deposits (PORD) are revised quarterly and often offer competitive rates.
An RD is risk-free and guarantees fixed returns, making it ideal for short-term conservative goals. An SIP in mutual funds carries market risk but historically offers much higher inflation-beating returns over the long term (5+ years).
Most banks allow you to select an RD tenure ranging from a minimum of 6 months up to a maximum of 10 years.
Yes, the interest earned on your RD is added to your total income and taxed according to your income tax slab. Banks also deduct 10% TDS if your annual interest from all deposits exceeds ₹40,000 (₹50,000 for senior citizens).
Standard RDs do not allow changing the monthly installment. However, some banks offer "Flexi RD" or "iWish" RDs where you can deposit varying amounts each month.
If you fail to pay your RD installment on time, the bank charges a nominal penalty for delayed payment. If you miss multiple consecutive installments (usually 5 or 6), the bank may close your RD account prematurely.