Calculate your Recurring Deposit (RD) maturity amount with this calculator. Enter your monthly deposit, annual interest rate, and tenure (in years) to see your total invested amount, interest earned, and maturity value at a glance.
Maturity Value
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Total Interest Earned
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Effective Return
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A Recurring Deposit (RD) is a financial product offered by banks and financial institutions that allows you to make fixed monthly deposits over a chosen tenure. At maturity, you receive the total deposited amount along with the accumulated interest. It is ideal for building a savings habit without needing a large lump sum upfront.
RD interest in India is typically compounded quarterly. The maturity amount for each monthly installment is calculated using the compound interest formula: M = P × (1 + r/n)^(nt), where P is the monthly deposit, r is the annual interest rate, n is the compounding frequency, and t is the time in years. The total maturity value is the sum of maturity amounts for all installments.
The standard formula is: M = P × [(1 + r/n)^(nt) − 1] / [1 − (1 + r/n)^(−1/n)], where M is the maturity amount, P is the monthly deposit, r is the annual interest rate, n is the compounding frequency per year, and t is the tenure in years. Most banks use quarterly compounding (n = 4).
In a Fixed Deposit (FD), you invest a lump sum amount once at a fixed interest rate for a chosen tenure. In a Recurring Deposit (RD), you make equal monthly deposits over the tenure. FD suits those with a large corpus to invest, while RD is better for those who prefer systematic monthly savings.
An RD calculator helps you instantly determine the maturity value, total interest earned, and total amount invested for your recurring deposit. It eliminates manual calculation errors and lets you compare different investment scenarios by changing the monthly amount, rate, or tenure.
Yes, the interest earned on an RD is fully taxable as per your applicable income tax slab. Banks deduct TDS (Tax Deducted at Source) if the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. You must declare RD interest income when filing your income tax return.
RD interest rates in India generally range from 5.5% to 8% per annum for regular citizens, with senior citizens typically receiving an additional 0.25%–0.75% above the standard rate. Rates vary by bank, tenure, and prevailing monetary policy. Small finance banks may offer slightly higher rates.
Yes, premature withdrawal is allowed in most RD accounts, but it usually attracts a penalty of 0.5%–1% deduction from the applicable interest rate. Some banks may not allow premature closure before a minimum lock-in period. It is advisable to check with your specific bank for their premature withdrawal terms.