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Calculate the maturity amount and interest earned on your Recurring Deposit. Plan your monthly savings effectively.
Most Indian banks compound RD interest quarterly.
Maturity Amount
After 5 years
Total Investment
60 monthly deposits
Total Interest
Guaranteed returns
Your total investment of ₹3,00,000 will grow to ₹3,59,664 in 5 years.
Interest makes up 16.6% of the final maturity amount.
Tax Note: The interest earned of ₹59,664 is taxable as per your income tax slab.
| Year | Total Investment | Total Interest | Balance |
|---|---|---|---|
| Year 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| Year 2 | ₹1,20,000 | ₹9,099 | ₹1,29,099 |
| Year 3 | ₹1,80,000 | ₹20,686 | ₹2,00,686 |
| Year 4 | ₹2,40,000 | ₹37,418 | ₹2,77,418 |
| Year 5 | ₹3,00,000 | ₹59,664 | ₹3,59,664 |
A Recurring Deposit (RD) is a special kind of term deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
Most banks in India compound the interest on Recurring Deposits quarterly. This means the interest is calculated every three months and added to the principal. Because you deposit money every month, each installment earns interest for a different duration.
For example, in a 1-year RD, the first installment earns interest for 12 months, the second for 11 months, and the last installment earns interest for just 1 month.
The interest earned on an RD is fully taxable as per your income tax slab. Banks will deduct TDS at 10% if the total interest earned across all branches of the bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can submit Form 15G/15H if your total income is below the taxable limit to avoid TDS.
A Recurring Deposit (RD) is a term deposit offered by Indian banks and post offices that helps people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
RD interest is typically compounded quarterly by most banks in India. The interest is calculated on the amount deposited each month for the remaining tenure of the deposit.
No, in a standard RD, the monthly deposit amount is fixed at the time of opening the account and cannot be changed. However, some banks offer 'Flexi RD' schemes where you can vary the deposit amount within certain limits.
Yes, the interest earned on a Recurring Deposit is fully taxable as per your income tax slab. Banks will also deduct TDS (Tax Deducted at Source) at 10% if the interest earned across all branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
Yes, premature withdrawal is usually allowed, but banks typically charge a penalty (usually 0.5% to 1%) on the interest rate applicable for the period the deposit was held.