Use our RD Calculator to determine the maturity amount of your recurring deposit. Input your monthly deposit, interest rate, and tenure to plan your savings effectively.
A Recurring Deposit (RD) is a fixed-term investment offered by banks and post offices, allowing you to deposit a fixed amount monthly for a predetermined period. It's an excellent option for individuals seeking disciplined savings with guaranteed returns.
A = P × ((1 + r/n)nt – 1) × (1 + r/n) / r| Year | Monthly Deposit (₹) | Interest Earned (₹) | Total Investment (₹) | Maturity Amount (₹) |
|---|---|---|---|---|
| 1 | 5,000 | 3,000 | 60,000 | 63,000 |
| 2 | 5,000 | 6,500 | 120,000 | 126,500 |
| 3 | 5,000 | 10,200 | 180,000 | 190,200 |
The minimum tenure for a Recurring Deposit is typically 6 months, and the maximum can go up to 10 years, depending on the bank or post office.
Yes, the interest earned on Recurring Deposits is taxable. TDS is applicable if the interest income exceeds ₹40,000 per annum (₹50,000 for senior citizens).
Yes, premature withdrawal is allowed, but it may attract a penalty, and the interest rate applicable may be lower than the original rate.
The interest on Recurring Deposits is typically compounded quarterly, which helps in earning higher returns over time.
Yes, most banks and post offices offer the facility to open a Recurring Deposit account online through their net banking or mobile banking platforms. You will need a savings account and KYC-compliant details to proceed.
Missing an RD installment may attract a nominal penalty depending on the bank. Repeated defaults can result in a reduction of interest or even premature closure of the RD account in extreme cases.