Recurring Deposit Calculator
Predict your guaranteed maturity amount exactly as calculated by Indian Banks and Post Offices. See how small monthly deposits compound into a secure corpus over time.
Formula (Quarterly Compounding)
M = P × ((1 + r/n)ⁿᵗ - 1) / (1 - (1 + r/n)^(-1/3))
Standard Indian Bank / Post Office RD formula
Maturity Amount
₹7,19,328
Guaranteed payout
Interest Earned
₹1,19,328
19.9% absolute return
Total Deposited
₹6,00,000
10,000 × 60 months
Compound Rate
7
Annual interest
Guaranteed Growth
Year-by-Year Growth
| Year | Deposited | Value | Interest |
|---|---|---|---|
| 1 | ₹1,20,000 | ₹1,24,621 | +₹4,621 |
| 2 | ₹2,40,000 | ₹2,58,198 | +₹18,198 |
| 3 | ₹3,60,000 | ₹4,01,373 | +₹41,373 |
| 4 | ₹4,80,000 | ₹5,54,837 | +₹74,837 |
| 5 | ₹6,00,000 | ₹7,19,328 | +₹1,19,328 |
How is this calculated?
Recurring Deposits compound quarterly based on standard Indian banking formulas:
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Book Free ConsultationRD Calculator — Build Wealth with Zero Risk Monthly Savings
Recurring Deposits are the safest way to build a guaranteed corpus through small, disciplined monthly savings. Our calculator mirrors the exact quarterly compounding logic used by SBI, HDFC, ICICI, and India Post to give you the precise maturity value.
Why Choose a Recurring Deposit?
Guaranteed Returns
Unlike Mutual Fund SIPs, your maturity amount is locked in on Day 1. It is completely immune to stock market crashes or interest rate changes during the tenure.
Quarterly Compounding
The magic happens every 3 months when your accrued interest starts earning interest of its own, accelerating your wealth curve.
Highly Liquid
You can easily take a loan against your RD (up to 90% of the deposit amount) without breaking the deposit, preserving your interest rate.
RD vs SIP vs FD: A Quick Comparison
| Feature | RD (Recurring Deposit) | SIP (Mutual Fund) | FD (Fixed Deposit) |
|---|---|---|---|
| Risk Level | Zero Risk (Guaranteed) | High Risk (Market Linked) | Zero Risk (Guaranteed) |
| Investment Frequency | Monthly | Monthly/Weekly/Daily | One-time Lumpsum |
| Returns Strategy | Fixed (~6-8%) | Variable (~10-15%) | Fixed (~6-8%) |
| Taxation | According to Income Slab | 12.5% LTCG (Equity) | According to Income Slab |
Tax Implications & TDS
Beware of the Tax Trap
Unlike the tax-free status of instruments like PPF, the interest you earn on an RD is fully taxable. It gets added to your annual income and is taxed at your marginal slab rate.
- If total interest from FDs/RDs across all branches of a bank exceeds ₹40,000 in a year, the bank deducts a flat 10% TDS.
- For senior citizens (60+ years), this TDS threshold is elevated to ₹50,000 under Section 80TTB.
- Pro Tip: If your total income is below the taxable limit, submit Form 15G (or 15H for senior citizens) to the bank to request 0% TDS deduction.
Legal Framework & Compliance
RBI Regulation: Bank Recurring Deposits are governed by the RBI's Master Direction on Interest Rate on Deposits. Post Office RDs are governed by the Government Savings Promotion Act, 2019.
DICGC Insurance: Bank RDs are insured up to ₹5,00,000 per depositor per bank under DICGC. Post Office RDs carry sovereign guarantee from the Government of India.
Disclaimer: Interest rates are indicative and subject to change. RD interest is fully taxable under Income from Other Sources. TDS applies per Section 194A.
Frequently Asked Questions
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