Recurring Deposit Calculator
Calculate your maturity amount instantly
Deposit Summary
Maturity Amount
$720,105
Breakdown
Based on inputs provided by the user. This calculator is for general information purposes only.
How to Use the Recurring Deposit (RD) Calculator
- 1Set Monthly Deposit Commitment — Specify the sum you wish to save each month (from ₹1,000 up to ₹5,00,000).
- 2Input Bank RD Interest Rate (% p.a) — Enter the fixed rate offered by your bank for term deposits (typically 6.5% to 8.5%).
- 3Select Savings Horizon — Choose total duration in years (from 1 to 10 years).
- 4Review Guaranteed Maturity Sum — Instantly see cumulative out-of-pocket deposits, compound interest earned, and guaranteed final maturity value.
Recurring Deposit Compounding Interest Formula
Commercial banks compound interest quarterly on monthly recurring deposits using the standard formula:
Recurring Deposit (RD) vs Fixed Deposit (FD) vs SIP Comparison
Evaluate the ideal savings vehicle based on risk tolerance, cash flow, and return potential:
| Criteria | Recurring Deposit (RD) | Fixed Deposit (FD) | Mutual Fund SIP |
|---|---|---|---|
| Deposit Style | Monthly installments | One-time lump-sum | Monthly installments |
| Returns Certainty | Guaranteed fixed rate | Guaranteed fixed rate | Market-linked (Variable) |
| Average Returns | 6.5% – 8.0% p.a. | 6.5% – 8.5% p.a. | 12.0% – 15.0% p.a. (Historical) |
| Capital Risk | Negligible (Bank insured) | Negligible (Bank insured) | Moderate to high |
Frequently Asked Questions
If you fail to pay a monthly RD installment by the due date, banks typically charge a small penalty (usually ₹1.50 to ₹2 per ₹100 of deposit). If multiple consecutive installments are missed, the bank may close the account prematurely.
Yes. Tax Deducted at Source (TDS) applies to RD interest under Section 194A if total bank interest exceeds ₹40,000 annually for regular citizens or ₹50,000 for senior citizens.
Yes. Most commercial banks provide an overdraft or loan against RD up to 85% to 90% of the accumulated deposit value at an interest rate 1% to 2% higher than the deposit rate.
Yes. All RD computations execute locally inside your web browser. No figures are collected, recorded, or sent to external servers.
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