RD Calculator

Frequently Asked Questions

• What is a Recurring Deposit (RD)?+
  A Recurring Deposit is a savings scheme offered by Indian banks and post offices where you deposit a fixed amount every month for a chosen tenure. At maturity you receive all the deposited instalments plus interest compounded quarterly. RDs are low-risk and ideal for building savings from a monthly salary.
• What is the RD maturity amount formula?+
  The standard formula used by Indian banks:
  M = R × [(1+i)ⁿ − 1] / [1 − (1+i)^(−1/3)]
  
  Where M = maturity amount, R = monthly instalment, i = quarterly interest rate (annual rate ÷ 4 ÷ 100), n = number of quarters. Banks may apply slight internal rounding; treat results as a close estimate.
• What are current RD interest rates in India?+
  Rates vary by bank and tenure. Most major banks currently offer 5.5%–7.5% per annum for general customers, with senior citizens getting 0.25–0.5% extra. Post Office RD earns 6.7% per annum (compounded quarterly). Always check your bank's website for the latest rates before opening an RD.
• Is RD interest taxable?+
  Yes — RD interest is fully taxable as 'Income from Other Sources' at your applicable slab rate. TDS at 10% is deducted if total interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. Submit Form 15G (or 15H for seniors) if your income is below the taxable limit to avoid TDS deduction.
• RD vs FD — which gives better returns?+
  An FD gives slightly higher effective returns because the full lump sum earns interest from day one. In an RD, only the first instalment earns interest for the full tenure — later instalments earn interest for shorter periods. Choose RD when you want to save monthly from income; choose FD when you have a lump sum to invest.