Free RD Calculator

In a recurring deposit you pay the same amount every month for a fixed term. Each instalment earns interest from the month it's paid, and banks and the post office compound that interest every quarter. So the first instalment earns interest for the whole term and the last one for just a month.

The calculator adds up every instalment's value at maturity: P × (1 + r/4)^(4 × months left ÷ 12), where P is the monthly deposit and r the yearly rate ÷ 100. For example, ₹5,000 a month for 12 months at 7% gives about ₹62,311: ₹60,000 of deposits and about ₹2,311 of interest. Over 5 years, the same RD comes to about ₹3,59,664 from ₹3 lakh deposited.

Banks round interest at each quarterly credit, so their figure can differ from this one by a few rupees.

A recurring deposit is a simple way to build a habit of saving. A few things to keep in mind:

• Tenures usually run from 6 months to 10 years, in multiples of 3 months. A post office RD runs for 5 years.
• Missing an instalment can mean a small penalty, and missing several can lead the bank to close the RD.
• Breaking an RD early usually means a lower rate than you were promised.
• RD interest is taxable at your slab rate, and banks deduct TDS on it in the same way as on fixed deposits.
• Senior citizens often get a slightly higher rate. Rates change often, so check the current rate with your bank or post office.

An RD and an FD pay similar rates; the difference is how you put money in. An FD takes a lump sum at the start, while an RD takes a fixed amount every month, so an RD suits saving from your salary and an FD suits money you already have. The FD calculator shows what a lump sum would earn.

If your goal is several years away and you can accept ups and downs, some people compare an RD with a monthly SIP in a mutual fund. A SIP may earn more over long periods but has no guaranteed return, while an RD's interest is fixed when you open it.