Save a fixed amount every month and see exactly what your recurring deposit will be worth at maturity, with quarterly compounding like Indian banks use.
₹
₹100₹1 L
% p.a.
3%10%
months
6 mo10 yrs
3 years
Maturity amount
₹2,00,686₹2,00,686
Interest
₹20.69 K₹20.69 K
Total deposited₹1,80,000
Total interest₹20,686
Deposited
₹1.8 L₹1.8 L
Interest earned
₹20.69 K₹20.69 K
Maturity amount ₹2,00,686. Interest ₹20,686.
Your RD, year by year
Deposited
Value
Y1Y2Y3
ⓘResults are estimates based on the figures you enter and standard formulas. They are for information only and are not financial, investment, tax or legal advice. Rates and rules change, so confirm with your bank, fund house, employer or tax adviser before you decide. Read the full disclaimer.
How an RD works
A recurring deposit lets you put a fixed amount into the bank every month for a chosen period, from 6 months to 10 years. The interest rate is fixed when you open it, and interest compounds every quarter until maturity.
M = P × ((1 + i)ⁿ − 1) ÷ (1 − (1 + i)^(−1/3))
Here P is the monthly deposit, i is the quarterly rate (annual rate ÷ 400) and n is the number of quarters.
RD maturity at 7%
RD maturity amounts at 7%
Monthly deposit
1 year
3 years
5 years
₹1,000
₹12,462
₹40,137
₹71,933
₹5,000
₹62,311
₹2,00,686
₹3,59,664
₹10,000
₹1,24,621
₹4,01,373
₹7,19,328
RD vs FD
An RD suits saving from your monthly income; an FD suits a lump sum you already have. Compare with the FD calculator, or see how a market-linked SIP compares.
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Frequently asked questions
How is RD interest calculated?+
Banks and the post office compound recurring deposit interest every quarter. Each monthly instalment earns interest from the month it is paid until maturity, so earlier instalments earn more than later ones.
What will ₹5,000 a month in an RD for 3 years give me?+
At 7%, ₹5,000 a month for 36 months grows to about ₹2,00,686. You deposit ₹1,80,000 and earn ₹20,686 in interest.
Is RD interest taxable?+
Yes. RD interest is added to your income and taxed at your slab rate. Banks deduct TDS when your total deposit interest with them crosses the yearly threshold.
What happens if I miss an RD instalment?+
Banks usually charge a small penalty for a late instalment, and several missed instalments can lead to the account being closed early. Setting up auto-debit avoids this.
RD or SIP: which is better?+
An RD gives a fixed, guaranteed return, which suits short-term goals. A mutual fund SIP can earn more over long periods but its returns are not guaranteed.