Financial Calculators
RD Calculator
Calculate Recurring Deposit maturity amount with quarterly compounding.
This tool provides an estimate or a starting draft. Check the assumptions and current official requirements before relying on the result. It does not replace qualified financial, legal or medical advice.
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A Recurring Deposit (RD) is a savings scheme where you deposit a fixed amount every month for a predetermined tenure, and receive the accumulated amount with interest at maturity. RDs are offered by commercial banks, small finance banks, post offices, and NBFCs. They are ideal for individuals with a regular monthly income who want to save systematically without the complexity of mutual funds.
Indian banks use quarterly compounding for RDs. The maturity formula is: M = R × [((1 + i)^n − 1) / (1 − (1 + i)^(−1/3))], where R is the monthly deposit, i is the quarterly interest rate (annual rate / 4 / 100), and n is the number of quarters. This formula accounts for the fact that each monthly deposit matures at a slightly different time. Post Office RDs use quarterly compounding with a 5-year tenure.
RD interest rates typically track FD rates for the same tenure. Senior citizens receive an additional 0.25–0.5% premium. TDS is applicable if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Unlike FDs, you cannot break an RD partway and withdraw — you can only close it prematurely (with a penalty). RDs are suitable for goal-based savings where you need the full amount at a specific date.
How to use this utility
- Use the controls below—paste text, pick files, or adjust options as described on the tool.
- Click the main action button. Processing runs in your browser on this device.
- Download or copy the output. Check the processing note for any external services used by this operation.
Common use cases
- A salaried person wants to save ₹5,000/month for a vacation fund over 18 months and needs to know the exact maturity amount.
- Parents are saving ₹10,000/month via RD for their child's school admission fee due in 3 years.
- A college student saving ₹1,000/month from their part-time job wants to know the maturity value after 2 years.
- Someone is comparing the maturity amount from an RD at 7% vs a monthly SIP in a liquid fund at an expected 6.5% to decide which to use for short-term savings.
- A new employee is setting up an RD for their emergency fund and needs to know what monthly deposit will give them ₹1 lakh in 18 months.
Tips for best results
- 1Open your RD on or before the 5th of a month at banks that calculate interest from the date of deposit — some banks pro-rate the first month's interest otherwise.
- 2Post Office RDs offer a government-backed 6.7% (FY 2025-26) with quarterly compounding on a 5-year tenure. This can be extended in 5-year blocks.
- 3Use an RD for goals with a fixed time horizon (vacation, down payment, school fee). For goals beyond 3 years, consider debt mutual funds for better post-tax returns.
- 4Some banks allow RD premature closure with a 1% penalty on interest. Check your bank's policy before committing to a long-tenure RD if you anticipate needing the money earlier.
- 5If you miss an RD instalment, banks charge a penalty of ₹1.5–2 per ₹100 per month. Set up an auto-debit mandate to avoid missing installments.
Frequently asked questions
- Is Konnect2Tools free?
- Yes. These in-browser tools are completely free to use with no account required for core functionality.
- Do my files leave my device?
- Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.
- Is the RD Calculator tool safe to use?
- Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.
- Can I increase my monthly RD contribution mid-tenure?
- No. The monthly deposit amount in an RD is fixed at the time of opening and cannot be changed. To increase your savings, open a second RD with the additional amount.
- Is RD better than SIP for short-term savings?
- For tenures under 3 years, RD offers predictable, guaranteed returns and is better for capital preservation. SIP in equity funds is meant for 5+ year horizons due to market volatility. For short-term goals (1–3 years), RD or liquid/ultra-short bond funds are more appropriate.
- How is RD interest taxed?
- RD interest is taxed at your applicable income slab rate. TDS at 10% is deducted if interest across all RDs in a bank exceeds ₹40,000 in a financial year. Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
- What is the maximum amount I can deposit in an RD?
- There is no maximum limit for bank RDs. Post Office RDs have a minimum of ₹100/month (in multiples of ₹10) with no upper limit. Some banks set a minimum deposit of ₹500–1,000/month.
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