Calculate the maturity value of your Recurring Deposits (RD) with this accurate RD Calculator.
All slider inputs, expected returns, interest rates, and custom goals are saved in this unique URL. Bookmark this page or share the link with others to show your plan.
A Recurring Deposit (RD) allows you to save a fixed amount every month with a bank or post office for a fixed tenure. The interest rate is usually locked at the time of opening the RD, which makes it useful for predictable short-term and medium-term goals.
An RD is different from an FD because you do not need a lump sum on day one. It works well when you receive monthly income and want to build a corpus gradually without taking market risk.
RD interest is compounded quarterly in most Indian banks. Our calculator uses the accurate quarterly compounding formula on your monthly installments to give you the precise maturity value.
An RD calculator is useful when you want to build a fixed corpus from monthly savings. Instead of investing a lump sum like an FD, a recurring deposit lets you deposit a fixed amount every month and earn a pre-decided interest rate.
Use this calculator to estimate:
Recurring deposit interest is usually compounded quarterly, but every monthly installment remains invested for a different number of months. The first installment earns interest for the full tenure, while the final installment earns interest only for the remaining period.
That is why RD maturity cannot be estimated accurately by simply multiplying the monthly deposit by tenure and applying one flat interest rate. A proper RD calculator compounds each installment based on how long it remains invested.
| Feature | Recurring Deposit | Mutual Fund SIP |
|---|---|---|
| Return | Fixed | Market-linked |
| Risk | Low | Depends on fund type |
| Best for | Short/medium-term safe goals | Long-term wealth creation |
| Liquidity | Premature withdrawal rules apply | Usually flexible, exit load may apply |
| Taxation | Interest taxable | Depends on fund type and holding period |
An RD can be better for a known goal such as school fees, insurance premium planning, or a travel fund. A SIP can be better for long-term goals where you can tolerate volatility.
Suppose you deposit ₹10,000 every month for 3 years at an annual interest rate of 7%.
| Item | Value |
|---|---|
| Monthly deposit | ₹10,000 |
| Tenure | 36 months |
| Total deposits | ₹3,60,000 |
| Interest rate | 7% p.a. |
| Maturity value | Depends on bank compounding method |
The final maturity amount is higher than total deposits because each installment earns interest for the period it remains with the bank. The first installment earns interest for almost the full tenure, while the last installment earns interest for a much shorter period.
An RD is suitable for goals where capital safety and discipline matter more than high returns. Examples include annual insurance premiums, school fees, festival spending, planned travel, emergency fund building, or saving for a down payment within a short timeline.
For retirement, children's education many years away, or wealth creation, RD returns may not beat inflation after tax. In those cases, compare RD with PPF, EPF, debt funds, hybrid funds, and equity mutual funds based on your time horizon and risk tolerance.
Yes. The interest rate is usually fixed at the time of opening the recurring deposit.
Yes. RD interest is taxable as per your income tax slab.
FD is better when you already have a lump sum. RD is better when you want to save monthly.
Most banks allow premature closure, but they may charge a penalty or apply a lower interest rate.
Bank RDs are generally considered low-risk, but deposit insurance limits and bank selection still matter. Do not choose a deposit only because it offers the highest rate.
Provide interactive financial planning directly for your blog or news audience.