RD Calculator
About RD Calculator
RD Calculator — calculate returns from Recurring Deposits with monthly contributions. Perfect for building savings discipline with regular monthly deposits and earning compounded interest.
How to use the RD Calculator
- Enter your monthly deposit amount (e.g., ₹5,000).
- Provide the annual interest rate (e.g., 6.5%).
- Enter the tenure in months or years.
- Click Calculate to view maturity value, total deposits, and interest earned.
Example Calculation
If you deposit ₹5,000 per month for 3 years (36 months) at 6.5% annual interest with quarterly compounding, your maturity amount would be approximately ₹1,96,435 — with ₹1,80,000 invested and ₹16,435 earned as interest.
Why Choose RD?
- Disciplined Savings — Forces regular monthly savings habit.
- Flexible Amounts — Start with as low as ₹100 per month in some banks.
- Guaranteed Returns — Fixed interest rate, no market risk.
- Compounding Benefits — Interest compounds quarterly, boosting returns.
- Ideal for short to medium-term goals like vacation, gadgets, or emergency fund.
RD vs SIP — Key Differences
- RD — Fixed returns, no risk, lower returns (6-7% typically).
- SIP — Market-linked, higher potential returns (10-12%+), but with volatility.
- Use RD for safe, guaranteed savings; use SIP for long-term wealth creation.
FAQs
What happens if I miss an RD installment?
Banks charge a penalty (₹5-₹50 per missed installment). If you miss too many, the RD may be discontinued. Some banks offer grace periods.
Is RD interest taxable?
Yes — RD interest is taxable as per your income slab. TDS is deducted if interest exceeds ₹40,000 per year (₹50,000 for senior citizens).
Can I close RD before maturity?
Yes, but you'll receive lower interest (similar to savings account rate) and may pay a penalty. It's best to complete the full tenure.
Use this calculator to plan your monthly savings and see how small regular deposits can grow into a substantial corpus over time.