Recurring Deposit Calculator

Plan your Recurring Deposit investments and calculate maturity amount, interest earned, and growth over time.

How It Works

Enter Monthly Deposit

Input the amount you plan to deposit every month into your Recurring Deposit account.

Choose Tenure

Select the total duration you want your RD to last, in months or years.

Select Interest Rate

Enter the expected annual interest rate offered by the bank.

View Maturity & Interest

See your maturity amount, interest earned, and growth over time.

For Example:

If you deposit ₹5,000 monthly for 3 years at 7% annual interest, your RD will grow steadily with compounding interest each quarter.

3-Year Maturity Table

Year	Monthly Deposit (₹)	Interest Earned in Year (₹)	Total Interest Till Now (₹)	Maturity (₹)
Year 1	₹5,000	₹1,750	₹1,750	₹61,750
Year 2	₹5,000	₹3,652	₹5,402	₹1,17,402
Year 3	₹5,000	₹5,610	₹11,012	₹1,83,012

Tips & Best Practices

Start Early

The earlier you start your RD, the more your money compounds over time. Even small monthly contributions grow significantly over a few years.

Choose Tenure Wisely

Shorter tenures might offer lower returns, while longer tenures benefit from compounding. Select a tenure that aligns with your financial goals.

Reinvest Interest

Opt for schemes that allow reinvestment of interest earned for maximum compounding benefit. This boosts maturity value over time.

Regular Contributions

Make sure you deposit your monthly contribution on time. Missing deposits can reduce overall returns and affect compounding.

Diversify Across Banks

Consider opening RDs in different banks to take advantage of higher interest rates and reduce risk.

Monitor Regularly

Keep track of your RD account to ensure deposits are credited correctly and interest rates remain competitive.

Frequently Asked Questions

What is a Recurring Deposit (RD)?

A Recurring Deposit is a type of term deposit where you invest a fixed amount every month for a specified period. The bank offers a fixed interest rate, and the principal along with interest is paid at maturity. RDs are ideal for disciplined savers who want steady growth. They are low-risk, secure, and allow you to plan for short- to medium-term financial goals.

How is interest calculated on RD?

RD interest is compounded quarterly and calculated on the monthly deposit amounts. The formula used is: M = P × n + (P × n(n+1) × r) / (2 × 12 × 100), where P = monthly deposit, n = number of months, and r = annual interest rate. Understanding this helps you estimate returns accurately.

Can I break an RD prematurely?

Premature withdrawal of an RD is allowed, but banks may charge a penalty or offer lower interest rates. It’s important to plan your tenure carefully to avoid reduced returns.

Can I increase my monthly deposit?

Most banks do not allow changing the deposit amount mid-tenure. To invest more, you may need to open a new RD. Always check bank rules before increasing contributions.

Is RD interest taxable?

Yes, the interest earned on an RD is taxable according to your income slab. Banks also deduct TDS if interest exceeds a certain threshold. Tax planning should be considered while investing in RDs.

Knowledge