Recurring Investments

Recurring Deposit (RD) Calculator

Calculate interest payouts, estimate final maturity amounts of your monthly bank RD plans compounded quarterly.

Monthly Deposit Amount (₹) Installment

₹

Rate of Interest (% p.a.) Annual rate

Tenure Mode Years

Estimated Maturity Value

₹3,59,201.00

Compounded quarterly as per Indian banking rules.

83%

Deposited

Total Invested: 83.5%

Interest Yield: 16.5%

Total Invested Principal

₹3,00,000.00

Total Interest Earned

₹59,201.00

Maturity RD Value

₹3,59,201.00

How Recurring Deposits are Calculated

The mathematics behind systematic quarterly compounding interest on savings.

What is a Recurring Deposit (RD)?

A Recurring Deposit is a specialized banking product offered in India that allows you to save a fixed amount regularly every month for a pre-defined tenure. The interest rate matches Fixed Deposit rates but does not require massive upfront capital.

                    RD compound interest formula (Summation):

                    M = Σ [ P × (1 + r/4)^(4 × (M - k + 1) / 12) ]

                    • P = Monthly contribution

                    • r = Annual Interest Rate (decimal form)

                    • M = Total months tenure

                    • k = Installment index (1 to M)

Taxability & Compounding Rules

Interest on RD is compounding quarterly in India. This means that deposits made in the early months accumulate interest longer, compounding four times a year. Under Indian Tax laws, RD interest earned is taxable under "Income from Other Sources". TDS of 10% is applicable if the total interest across all RDs and FDs in the bank exceeds ₹40,000 (₹50,000 for senior citizens) in a fiscal year.

Frequently Asked Questions

Banks usually charge a small penalty (e.g. ₹1.50 or ₹2.00 per ₹100 of the monthly deposit) for delayed payments. If you miss consecutive payments for multiple months, the bank may close your RD account prematurely and apply standard savings interest rates.

Yes. Most banks offer overdraft or loan facilities against your accrued RD balance. You can generally borrow up to 90% of your deposit amount at an interest rate that is 1% to 2% higher than the RD interest rate.

The minimum tenure for a bank RD in India is **6 months**, and the maximum tenure can go up to **10 years** (120 months) in multiples of 3 months.

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Recurring Deposit (RD) Calculator

How Recurring Deposits are Calculated

What is a Recurring Deposit (RD)?

Taxability & Compounding Rules

Frequently Asked Questions

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Recurring Deposit (RD) Calculator

Maturity Yield Schedule

How Recurring Deposits are Calculated

What is a Recurring Deposit (RD)?

Taxability & Compounding Rules

Frequently Asked Questions

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