RD Calculator India — Recurring Deposit Maturity & Interest 2026
How the RD Calculator India Works
RD maturity values at 7% — for ₹5,000 monthly deposit
| Tenure | Total Deposited (₹) | Interest Earned (₹) | Maturity Value (₹) |
|---|---|---|---|
| 1 year (12 months) | ₹60,000 | ₹2,284 | ₹62,284 |
| 2 years (24 months) | ₹1,20,000 | ₹9,264 | ₹1,29,264 |
| 3 years (36 months) | ₹1,80,000 | ₹21,340 | ₹2,01,340 |
| 5 years (60 months) | ₹3,00,000 | ₹63,122 | ₹3,63,122 |
Real-World Examples — 2026
Goal-based RD — saving for a vacation in 2 years
To accumulate ₹1.3 lakhs for a vacation in 2 years, start a ₹5,000/month RD at 7% interest. After 24 months you will have deposited ₹1.2 lakhs and earned approximately ₹9,264 in interest, giving a maturity value of ₹1.29 lakhs.
Child education fund — ₹10,000/month for 5 years
A ₹10,000/month RD at 7% for 5 years accumulates ₹7.26 lakhs on a total investment of ₹6 lakhs. The ₹1.26 lakh interest earned is taxable. For longer horizons, a SIP in a balanced fund may provide better post-tax returns.
RD vs SIP for short-term goals (3 years)
For goals under 3 years, RD provides safety and guaranteed returns. SIP in equity funds is volatile over 3 years.
| Option | Monthly | 3Y Invested | 3Y Maturity | Risk |
|---|---|---|---|---|
| RD @ 7% | ₹5,000 | ₹1,80,000 | ₹2,01,340 | None |
| Debt Fund SIP | ₹5,000 | ₹1,80,000 | ~₹2,06,000 | Low |
| Equity SIP @ 12% | ₹5,000 | ₹1,80,000 | ~₹2,42,000 | High |
How to Use These Results
When should you choose RD over SIP?
Choose RD over SIP when your goal is within 1–3 years and you cannot afford any risk. RDs provide guaranteed returns. For goals beyond 5 years, a SIP in equity mutual funds almost always generates higher post-tax returns despite short-term volatility.
Is RD interest taxable?
Yes. RD interest is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate. Banks deduct TDS at 10% if total interest income (FD + RD combined) exceeds ₹40,000 in a financial year. Submit Form 15G/15H if your income is below the taxable limit.
Can you withdraw RD before maturity?
Most banks allow premature RD closure with a penalty of 0.5–1% on the applicable rate for the period held. Some banks charge a flat penalty. Missing monthly RD installments typically attracts a small fine (₹1.5–2 per ₹100 per month of delay).
Frequently Asked Questions
What is the current RD interest rate in India in 2026?
RD interest rates in India in 2026 range from 6.5% to 7.5% at major public and private sector banks. SBI offers 6.5–7.0% depending on tenure. Small finance banks offer higher rates up to 8.5%. Senior citizens receive 0.25–0.5% additional interest.
How is RD interest calculated?
Indian bank RDs use quarterly compounding with a specific formula: M = R × [(1+r)^n − 1] / [1−(1+r)^(−1/3)], where R is monthly deposit, r is quarterly rate, and n is total quarters. This differs from SIP formula as each installment earns interest for a different duration.
What is the minimum amount for an RD?
Most banks allow RDs starting from ₹100/month. Post offices accept ₹100/month as the minimum. There is no maximum limit on RD deposits, though tax rules apply to interest income above ₹40,000/year.
What is the difference between an FD and an RD?
An FD requires a one-time lump sum investment. An RD allows you to deposit a fixed amount every month, making it suitable for regular savers. FD is better for investing a large sum at once; RD is better for building savings from monthly income.
Can you take a loan against an RD?
Yes. Most banks allow loans up to 90% of the RD balance at any point. The loan interest rate is typically 1–2% above the RD rate. This is useful if you need funds urgently without breaking the RD and losing interest.
Is RD better than a savings account?
Yes, significantly. Savings accounts offer 2.5–4% interest, while RDs offer 6.5–7.5%. If you have money sitting in a savings account for more than 1 month, moving it to an RD or FD earns substantially more interest.