RD Calculator

What Is a Recurring Deposit?

A recurring deposit (RD) lets you save a fixed amount every month with a bank or the post office and earn a fixed interest rate. It suits people who want to build savings gradually without market risk. This calculator shows the maturity value using quarterly compounding, the method Indian banks and India Post use.

How to Use It

1. Enter your monthly deposit.
2. Enter the interest rate - for example, the post office 5-year RD rate.
3. Enter the tenure in months.

Example

Saving ₹3,000 a month for 60 months at 6.7% gives a maturity value of about ₹2,14,097. You deposit ₹1,80,000 in total and earn ₹34,097 in interest. This matches the maturity value India Post shows for a 5-year RD of the same amount.

How the Interest Is Worked Out

Each monthly instalment earns interest only for the months it stays in the account, compounded every quarter. The first instalment earns for all 60 months, the last for just one. The calculator adds up the value of every instalment at maturity.

RD or SIP?

An RD gives a guaranteed return and suits short goals or money you cannot afford to lose. A SIP in an equity fund may earn more over long periods but can fall in value. Many people use both: an RD for a goal two or three years away, a SIP for retirement. Compare them with the SIP Calculator.

Limitations

Missed instalments, penalties and premature closure are not included, and RD interest is taxable at your slab rate. Banks may round each quarter's interest slightly differently. For a one-time deposit, use the FD Calculator.