How is RD maturity amount calculated?

RD uses quarterly compounding: Maturity = P × (1 + r/4)^(4n) per instalment, summed for all instalments where P is monthly deposit, r is annual rate, and n is remaining tenure in years. Most Indian banks compound RD quarterly.

RD vs FD — which is better?

FD is better if you have a lump sum to invest. RD is better for building savings gradually from monthly income. FD typically offers slightly higher returns than RD at the same tenor. Both are safe with similar tax treatment.

RD Calculator 2026 – Recurring Deposit Returns

RD Calculator —
Recurring Deposit Maturity Value

Calculate exactly how much your monthly Recurring Deposit will grow to. Get the precise maturity amount and total interest earned for any Indian bank RD. This calculator is built for Indian investors and taxpayers using the latest rules from the Income Tax Act, SEBI regulations, EPFO guidelines, and RBI circulars applicable for FY 2025-26. All results update instantly in your browser with no data transmitted to our servers. Use the inputs to model your specific scenario, then compare against the current year limits and rates shown on the Income Tax Department portal at incometax.gov.in. This calculator follows the exact mathematical formulas prescribed by the Income Tax Act, SEBI regulations, EPFO guidelines, RBI circulars, and AMFI rules for FY 2025-26. Results update instantly in your browser. No data is stored or transmitted. Use these results as a planning baseline and consult a SEBI-registered investment adviser or Chartered Accountant for decisions involving significant amounts. The most accurate and current tax rates are available on the Income Tax Department portal at incometax.gov.in and the GST portal at gst.gov.in. Understanding the precise mechanics of this calculation enables better financial decisions. Every input variable has a different sensitivity — some inputs change the result dramatically while others have minimal impact. For investment calculators, the return rate assumption is the most sensitive variable. For tax calculators, your filing status and deductions matter most. For loan calculators, the interest rate and tenure interact to determine total cost. Running multiple scenarios with conservative, realistic, and optimistic assumptions gives a range of outcomes rather than a single number, which is the foundation of sound financial planning.

RD Calculator — Recurring Deposit Explained

What is a Recurring Deposit (RD)?+

A Recurring Deposit (RD) is a fixed monthly savings product offered by Indian banks and post offices. You deposit a fixed amount every month for a chosen tenure (6 months to 10 years), and the bank pays compound interest (quarterly compounding as per RBI mandate). At maturity, you receive the total principal plus accumulated interest. RD is ideal for building a savings habit with guaranteed, risk-free returns.

What are current RD rates in India (2026)?+

As of 2026, major bank RD rates: SBI offers 6.5–7.0% for 1–5 years; HDFC Bank offers 7.0–7.25%; ICICI Bank offers 6.75–7.0%; Axis Bank offers 7.0–7.25%. Small Finance Banks (like AU, Ujjivan) offer 7.5–9.0% with higher rates for senior citizens (+0.25–0.50%). Post Office RD currently offers 6.7% for 5-year RD. Always verify current rates directly with the bank before opening an RD.

RD vs SIP — which is better?+

RD gives guaranteed, risk-free returns (6.5–7.5%) but returns are lower and interest is fully taxable. SIP in equity mutual funds gives potentially higher returns (10–15% historical) but with market risk. RD is better for: short-term goals (1–3 years), risk-averse investors, emergency fund building, and capital preservation. SIP is better for: long-term wealth creation (5+ years), beating inflation, and higher post-tax returns (LTCG at 10% vs RD interest at your income tax slab).

Is RD interest taxable in India?+

Yes. RD interest is fully taxable as "Income from Other Sources" at your applicable income tax slab rate. If annual interest exceeds ₹40,000 (₹50,000 for senior citizens), TDS at 10% is deducted by the bank. You must include RD interest in your ITR every year on an accrual basis (not just at maturity). Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit. Unlike PPF or ELSS, RD has no tax exemption on interest.

Can I break an RD before maturity?+

Yes, but with a penalty. Banks typically charge 0.5–1% penalty on the applicable interest rate for premature closure. For example, if your RD is at 7% for 2 years and you break it at 1 year, you'll receive interest at the 1-year RD rate minus 0.5–1%. Some banks allow RD premature closure without penalty after a minimum period. Post Office RD has stricter premature withdrawal rules — not allowed before 3 years (except for death of account holder). Always read the terms before opening an RD.