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RD Calculator | Recurring Deposit Maturity Calculation
Calculate the maturity value, total deposit and interest earned on a Recurring Deposit instantly — using the quarterly-compounding method used by Indian banks and post office RDs.
RD Calculator
A Recurring Deposit (RD) is a savings method in which you deposit a fixed amount every month and receive the total back with compound interest at the end of a fixed term. Enter the monthly instalment, interest rate and tenure in the calculator below to find the maturity value instantly.
How RD Calculation Works
In Indian banks and post office RDs, interest is calculated on a quarterly compounding basis. Each monthly instalment earns interest according to the remaining tenure after it is deposited — so instalments made earlier in the year earn more interest than later ones. This calculator uses that same standard method.
A few important points:
- In most banks the minimum RD instalment starts at ₹100; at the post office the minimum is ₹100.
- A missed instalment attracts a penalty charge and reduces the maturity value.
- If an RD is broken prematurely, the interest is reduced to the savings rate and a small penalty is deducted.
- Interest is taxable — the TDS rules are explained in the FAQ above.
Frequently Asked Questions
How is interest calculated on a bank RD?
In Indian banks and post office RDs, interest is compounded quarterly — each monthly instalment earns interest for the remaining tenure. This calculator uses exactly that method.
What happens if an RD instalment is missed?
If an instalment is missed, most banks charge a penalty on the overdue amount and the maturity value goes down. If you cannot pay instalments regularly, it is safer to keep auto-debit enabled.
Is RD interest taxable?
Yes. RD interest income is included in your income and taxed as per your income-tax slab. Banks deduct 10% TDS at source if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
What is the current post office RD interest rate?
The 5-year post office Recurring Deposit currently earns 6.7% per annum (compounded quarterly). Rates are revised quarterly, so verify the official rate before depositing.