RD Calculator

Calculate the maturity value of your Recurring Deposit.

Effective Returns:

Invested Amount₹18,00,000

Estimated Returns₹5,36,338

Maturity Value₹23,36,338

Input fields:

Monthly Investment

₹

Annual Interest Rate

Time Period

Explanation

A Recurring Deposit (RD) lets you choose a set amount every month and deposit it into your RD account on a designated day. Your money starts compounding at a pre-agreed rate. At the end of your RD tenure, you receive the reward for your patience and discipline in the form of interest earned, in addition to your paid-in amounts. Almost every bank and non-banking financial organization in India offers Recurring Deposits. RD interest is compounded quarterly. However, do note that this interest is also liable for TDS (Tax Deducted at Source), which is not taken into account in this calculator.

RD amount calculation formula

Most banks calculate interest on a quarterly basis in a recurring deposit account. The formula used here compounds your monthly RD amount quarterly. It is evaluated using a simple future value formula for recurring cashflows paid at the start of each period (at the start of every month).

How Our Calculator Can Help You?

a) Calculate the RD maturity amount. b) Determine the monthly contribution amount to get the desired corpus. c) Compare RD returns to other investment schemes. d) Understand the RD scheme eligibility, contribution limits, tax benefits, and withdrawal rules.

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FAQs

No. There are no tax benefits per se for RD. If total interest exceeds Rs.40,000 under your PAN in a single financial year, TDS will be applied and tax will be payable as per your tax slab.

In most cases, the minimum tenure is 6 months and the maximum tenure is 10 years. After six months, you can select tenure in multiples of 3 months.

The interest is calculated using the compound interest formula. The compounding frequency is quarterly.

No. RDs do not have any lock-in period. However, you may have to pay a pre-closure penalty.

Yes, similar to FDs, senior citizens are offered better interest rates by the banks. Usually, the rate is 0.5% more.

A minimum of Rs.100 is required to start your RD account.

While the general interest rates vary from 4.0-7.0%, senior citizens can get up to 0.5% more usually.

Any individual, HUF, NRI or any corporate / government organization can open an RD account.