RD Calculator

What is Recurring Deposit (RD)?

A Recurring Deposit (RD) is a disciplined saving scheme offered by banks and post offices where you deposit a fixed amount every month for a predetermined tenure. It earns compound interest, making it an ideal investment for regular savers.

RD Calculation Formula

The maturity value of an RD is calculated using the formula: M = R × [(1 + r/n)^(n×t) - 1] / (1 - (1 + r/n)^(-1/3)), where M = Maturity amount, R = Monthly installment, r = Interest rate, n = Compounding frequency, t = Tenure in years. Banks typically compound interest quarterly.

Benefits of RD Calculator

• Plan your monthly savings goals effectively
• Compare returns across different banks & tenures
• Understand the power of compounding on regular deposits
• Tax planning under Section 80C (5-year tax-saving RDs)
• Build a disciplined saving habit

Example Calculation

Monthly Deposit: ₹5,000 | Interest Rate: 7% | Tenure: 5 years
Total Invested: ₹3,00,000 | Interest Earned: ₹60,000 | Maturity Amount: ₹3,60,000

RD vs FD vs SIP

RD requires monthly deposits, perfect for salaried individuals. FD requires lump sum investment. SIP offers market-linked returns. RDs are safer with guaranteed returns, making them ideal for conservative investors.

Taxation on RD

Interest earned on RD is fully taxable as per your income tax slab. Banks deduct TDS if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. However, 5-year tax-saving RDs qualify for deduction under Section 80C up to ₹1.5 lakh.