Recurring Deposit Calculator
Easily calculate the maturity value of your savings with our recurring deposit calculator. Enter monthly deposit, tenure, and interest rate to plan returns and achieve your financial goals.
₹10,000.00
7.00 %
5 years
⚠️ Disclaimer: The amortization schedule is an estimate and may differ across banks based on applicable fees or additional charges.
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What is a Recurring Deposit?
A Recurring Deposit (RD) is a savings scheme offered by banks where you deposit a fixed amount monthly for a fixed tenure. At maturity, you receive your total deposits along with compound interest.
Benefits of Recurring Deposit
- Disciplined Savings: Encourages regular monthly saving habit.
- Safe Investment: Principal is secure as it is offered by banks and NBFCs.
- Guaranteed Returns: Earns interest at a fixed rate, providing predictable growth.
- Flexible Tenure: Tenures can range from 6 months to 10 years depending on the bank.
- Goal-Oriented: Suitable for saving for specific goals like vacations, gadgets, or education.
Types of Recurring Deposit
Common types of RDs include:
- Standard RD: Fixed monthly deposits for a chosen tenure with fixed interest.
- Senior Citizen RD: Higher interest rates for individuals above a certain age.
- Flexi RD: Allows variation in monthly deposit amounts depending on the bank.
- Tax-Saving RD: Eligible for tax deduction under Section 80C with a lock-in period (if offered by the bank).
Who Can Invest in RD?
RD is suitable for:
- Individuals with a regular income looking for disciplined savings
- Students and salaried professionals planning short-term goals
- Senior citizens seeking safe, steady returns
- Parents saving for children’s future expenses or education
Taxation on Recurring Deposit
Interest earned on RDs is taxable as per your income tax slab.
- TDS: Banks may deduct Tax Deducted at Source (TDS) if interest exceeds the threshold.
- Senior citizens may avail higher exemptions under certain conditions.
Consider taxation while calculating your effective returns.
Tips for Investing in RD
- Start early and choose a tenure aligned with your financial goals.
- Ensure timely monthly deposits to avoid penalties and reduce stress.
- Consider laddering multiple RDs to manage liquidity and interest rates effectively.
- Compare interest rates across banks to maximize returns.
- Use RD as part of a diversified savings plan alongside FDs and mutual funds.
Impact of Tenure on RD Returns
The tenure of an RD influences interest earned. Longer tenures generally offer higher returns, while shorter tenures provide faster liquidity.
Align your RD tenure with your financial goals to optimize growth and availability of funds when needed.
RD Calculation Formula
Recurring Deposit (RD) Maturity Formula
Simplified Formula (Annual Compounding)
This approximation assumes annual compounding and adds interest on the average invested balance. Useful for quick calculations.
Where:
Recurring Deposit Example
Example: Recurring Deposit vs Fixed Deposit
Comparing a Recurring Deposit (RD) and a Fixed Deposit (FD) for 5 years at an annual interest rate of 6%.
Comparison
Recurring Deposit (RD)
Monthly Deposit: ₹10,000
Total Investment: ₹6,00,000
Maturity Amount ≈ ₹6,96,000
Interest Earned ≈ ₹96,000
Fixed Deposit (FD)
Lump Sum Investment: ₹6,00,000
Maturity Amount ≈ ₹8,04,000
Interest Earned ≈ ₹2,04,000
Key Insight
FD earns more interest because the entire principal is invested at once, allowing more time for compounding. RD grows steadily with monthly contributions, suitable for disciplined saving over time.
Why Use an RD Calculator?
An RD Calculator helps you plan your savings, compare different tenures, and estimate returns in advance so you can achieve financial goals systematically.