DepositCalc

India RD Calculator (Recurring Deposit)

Monthly deposits compounded quarterly — see your maturity value and total interest earned.

Monthly deposit

Rs.

Interest rate (% p.a.)

Tenure (years)

Maturity value

Rs. 3,54,954

Interest is compounded quarterly, as is standard for Indian bank RDs.

Total deposited: Rs. 3,00,000
Interest earned: Rs. 54,954

What you entered

Monthly deposit: Rs. 5,000Interest rate (% p.a.): 6.5%Tenure (years): 5

1
Quarterly interest rate
r = 6.5% ÷ 4= 1.6250%
2
Total monthly deposits
n = 5 × 12= 60 months
3
Total amount deposited
Rs. 5,000.00 × 60= Rs. 3,00,000.00
4
Maturity value (each deposit compounded for remaining quarters)
Σ P × (1 + r)^(remaining_quarters)= Rs. 3,54,954.10
5
Interest earned
Rs. 3,54,954.10 − Rs. 3,00,000.00= Rs. 54,954.10

Result

Maturity value: Rs. 3,54,954

Depositing Rs. 5,000/month at 6.5% for 5 years matures to Rs. 3,54,954, earning Rs. 54,954 in interest.

Recurring deposit maturity value at 6.5% per annum

An RD takes a fixed deposit every month and compounds quarterly, so each instalment earns for a different length of time. Each cell is the maturity value for the tenure in the column heading.

Monthly deposit	After 1 year	After 2 years	After 3 years	After 5 years	Paid in over 5 years
Rs. 1,000	Rs. 12,429	Rs. 25,685	Rs. 39,824	Rs. 70,991	Rs. 60,000
Rs. 2,000	Rs. 24,857	Rs. 51,370	Rs. 79,649	Rs. 1,41,982	Rs. 1,20,000
Rs. 5,000	Rs. 62,143	Rs. 1,28,425	Rs. 1,99,122	Rs. 3,54,954	Rs. 3,00,000
Rs. 10,000	Rs. 1,24,286	Rs. 2,56,851	Rs. 3,98,244	Rs. 7,09,908	Rs. 6,00,000
Rs. 15,000	Rs. 1,86,430	Rs. 3,85,276	Rs. 5,97,366	Rs. 10,64,862	Rs. 9,00,000

Compare the last two columns: five years of Rs. 5,000 a month pays in Rs. 3,00,000 and matures at Rs. 3,54,954, so the interest is about 18% of what you deposited even at a 6.5% rate. That is lower than it first looks because the final instalment earns for one month while the first earns for sixty. An RD suits a fixed monthly surplus and a known date; for the same monthly discipline over a longer horizon, compare against a SIP, accepting that an RD's return is contractual and a SIP's is not. RD interest is taxable at your slab rate and missed instalments usually attract a small penalty.

RDs build saving discipline

Unlike an FD which requires a lump sum, an RD lets you invest a fixed amount every month — making it easier to build savings gradually, especially for salaried individuals who can set up auto-debit.

Each installment earns different interest

Your first month's deposit earns interest for the entire tenure, while the last month's deposit earns almost none — the effective yield on total deposits is lower than the quoted rate because later deposits have less time to compound.

Frequently asked questions

How is RD maturity calculated?

Each monthly installment is compounded quarterly for its remaining tenure. The first deposit of ₹5,000 at 7% for 24 months earns compound interest for 24 months; the last deposit earns for 1 month. Total maturity on ₹5,000/month for 2 years at 7%: approximately ₹1,28,600 on ₹1,20,000 invested.

RD vs SIP — which is better?

RD: fixed guaranteed return (6–7%), zero risk, no market exposure. SIP (equity): variable return (10–15% historical average), market risk, potential for much higher growth. For short-term goals (1–3 years): RD is safer. For long-term goals (5+ years): SIP in equity funds has historically outperformed RDs significantly.

Is RD interest taxable?

Yes — RD interest is fully taxable at your slab rate, same as FDs. TDS applies when interest exceeds ₹40,000/year (₹50,000 for seniors). Post-tax return on a 7% RD in the 30% bracket is only 4.9% — barely beating inflation. Consider tax-free options like PPF or ELSS for long-term savings.