What is RD Calculator?
An RD (Recurring Deposit) Calculator helps you calculate maturity amount, interest earned, and total returns on monthly RD deposits. RD is a safe savings scheme where you deposit a fixed amount every month for a fixed tenure (1-10 years) and earn interest compounding quarterly. Offered by banks and post offices with interest rates of 6-7%, RD is perfect for building emergency funds, saving for goals, and earning fixed returns. Calculate your RD maturity value instantly!
Formula
Maturity Value = P × n + P × [n(n+1)/2] × (r/12)
Where: P = Monthly deposit, n = Number of months, r = Annual interest rate
Example: ₹5,000/month for 5 years at 6.5% = ₹3,48,204 (invested ₹3L, interest ₹48K)
Benefits of Using RD Calculator
Maturity Calculation – Know exact amount at RD maturity
Interest Earned – See total interest on monthly deposits
Goal Planning – Save for vacation, wedding, education
Quarterly Compounding – Accurate interest calculation
Fixed Returns – Guaranteed, risk-free like FD
Free & Updated – Latest bank RD rates for 2025
Pro Tip: RD vs SIP: RD gives 6-7% guaranteed returns (safe). SIP gives 12-15% average returns (market-linked risk). For short-term goals (1-3 years), choose RD. For long-term wealth (5-20 years), choose SIP. Diversify both for balanced portfolio!
Frequently Asked Questions
Bank RD rates: SBI (6.5%), HDFC (6.6%), ICICI (6.7%), Axis (6.75%). Post Office RD: 6.7% (Q3 FY25). Senior citizens get 0.5% extra. Rates revised quarterly. Small finance banks offer up to 8% but have lower deposit insurance!
5 years at 6.5%: Invested ₹6L, Maturity ₹6,96,408 (interest ₹96K). 10 years at 6.5%: Invested ₹12L, Maturity ₹16,68,571 (interest ₹4.7L). RD interest compounds quarterly, so longer tenure = exponential growth!
RD = Monthly deposits of fixed amount. FD = One-time lump-sum deposit. RD suits salaried (monthly savings). FD suits those with lump-sum money. Interest rates are similar (6-7%). Both are safe, tax implications same - TDS on interest >₹40K!
Penalty: ₹50-100 per missed installment + lower interest on delayed amount. 3-4 consecutive misses = account might be closed. Most banks allow 1-2 grace months. Better: Set auto-debit from savings account to never miss RD payment!
Yes, but penalty applies! Premature withdrawal penalty: 1-2% interest deduction. Some banks allow from 6 months onwards. Example: 6.5% RD closed in 3 years gets only 5.5%. For emergencies only - defeats the purpose of disciplined savings!
YES! RD interest added to income, taxed at your slab rate (5-30%). Banks deduct TDS @ 10% if interest >₹40,000/year. Submit Form 15G/H to avoid TDS if income <₹2.5L. Post-tax returns: 6.5% = 4.55% (30% slab) = barely beats inflation (6%)!