Recurring Deposit Calculator
Calculate RD maturity amount with monthly deposits and inflation adjustment
💰 Popular Recurring Deposit Examples
RD ₹5,000 for 5 Years
RD ₹10,000 for 3 Years
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About Recurring Deposit Calculator
Recurring Deposit (RD) is a popular savings scheme in India where you deposit a fixed amount every month for a predetermined period. It's perfect for salaried individuals who want to save regularly without the burden of a large lump sum investment. RD offers guaranteed returns with no market risk, making it ideal for conservative investors who prioritize capital protection over high returns. Banks and post offices offer RD schemes with interest rates typically ranging from 5.5% to 7.5% per annum, with senior citizens getting an additional 0.50% interest benefit.
RD Calculation Formula
Maturity Amount = P × [(1 + r)^n - 1] / r × (1 + r)
Where:
P = Monthly Deposit Amount
r = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
n = Number of Months
Example Calculation
Scenario: Deposit ₹5,000 monthly for 5 years at 6.5% interest
- Monthly Deposit: ₹5,000
- Interest Rate: 6.5% per annum
- Tenure: 5 years (60 months)
- Maturity Amount: ₹3,51,209
- Total Invested: ₹3,00,000
- Interest Earned: ₹51,209
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EMI Calculator
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Home Loan
Calculate home loan EMI
Personal Loan
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Calculate income tax
CAGR Calculator
Calculate growth rate
Retirement
Plan retirement corpus
PPF Calculator
Calculate PPF returns
Lumpsum
Calculate lumpsum returns
Inflation
Calculate inflation impact
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Frequently Asked Questions
What is a Recurring Deposit (RD)?
RD is a deposit scheme where you invest a fixed amount every month for a predetermined period and earn interest on it. It's ideal for regular savers who want guaranteed returns with capital protection.
What is the minimum and maximum tenure for RD?
Minimum tenure is typically 6 months and maximum is 10 years. However, this varies by bank and specific schemes.
Can I withdraw RD before maturity?
Yes, premature withdrawal is allowed but with a penalty of 1-2% on the interest rate. The penalty varies by bank and tenure completed.
Is RD interest taxable?
Yes, interest earned on RD is taxable as per your income tax slab. TDS applies if interest exceeds ₹40,000 per year (₹50,000 for senior citizens).
What happens if I miss an installment?
Banks typically charge a penalty of ₹5-25 per missed installment. If you miss consecutive installments, the account may be closed or converted to FD.
Can I get a loan against my RD?
Yes, most banks offer loans up to 90% of the RD value. The interest rate is typically 1-2% above the RD interest rate.
Is there a tax-saving RD option?
Yes, 5-year tax-saving RD qualifies for deduction under Section 80C with a deduction limit of ₹1.5 lakhs per year. However, the lock-in period is 5 years.
How is RD interest calculated?
RD interest is calculated using compound interest formula with quarterly compounding. The effective rate is slightly higher than the nominal rate due to compounding.