RD Calculator
A Recurring Deposit (RD) lets you save a fixed amount every month and earn guaranteed interest. This calculator uses Indian bank standard quarterly compounding to show your exact maturity amount.
Frequently Asked Questions
How is RD interest calculated?+
Indian banks calculate RD interest using quarterly compounding. Each monthly instalment is treated as a separate FD for the remaining period. The total maturity is the sum of all these individual compounded amounts.
What is the difference between an RD and a SIP?+
Both involve monthly deposits, but they are very different products. An RD is a bank deposit with a fixed, guaranteed interest rate. A SIP invests in mutual funds with market-linked (variable) returns. RDs are safer but typically offer lower returns than equity SIPs over the long term.
Is RD interest taxable?+
Yes. Interest earned on an RD is fully taxable as per your income tax slab. TDS is deducted at 10% if the total interest from a bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
Can I withdraw an RD before maturity?+
Yes, premature closure is allowed but typically attracts a penalty of 0.5% to 1% on the applicable rate. Some banks do not allow premature withdrawal before a minimum period (usually 3 months). Check with your specific bank.