Finance & Investment · Bank Deposits
RD Calculator — Recurring Deposit & Savings
Calculate the maturity value of a recurring deposit (bank or post office) using the standard quarterly-compounding formula, or flip it round: find the monthly saving needed to reach a target. Add a yearly increase for a growing savings plan, the senior-citizen rate and TDS.
Your inputs
Quick start — try a typical case
₹ 10 thousand
Banks offer 6 months to 10 years; the post office RD runs 5 years.
Your result Live
Maturity Amount
₹7,19,328
₹6,00,000 deposited + ₹1,19,328 interest
- Total Deposited
- ₹6,00,000
- Interest Earned
- ₹1,19,328
- TDS Deducted (estimate)
- None at this interest level
- Deposited · 83%₹6,00,000
- Interest · 17%₹1,19,328
Year by year
5 rowsRD interest is taxable at your slab rate, and banks deduct TDS on it like an FD. Missing an instalment usually attracts a small penalty.
How this is calculated
Maturity = Σ D × (1 + r/4)^(m/3) over every instalment, m = months it stays invested
- D
- Monthly deposit (made at the start of each month)
- r/4
- Quarterly rate — RD interest compounds every quarter, applied pro rata to part-quarters
In a recurring deposit, every monthly instalment earns interest from the day it's paid until maturity, compounded quarterly. The first instalment earns for the full tenure, the last for just one month — adding them all up gives the maturity value. Goal mode runs the same formula backwards.
Assumptions & sources
- Instalments paid on time at the start of each month; fixed rate for the tenure.
- TDS estimate as for FDs: 10 % of a year's interest above the threshold.
- 1TDS on interest other than interest on securities (section 194A / section 393 of the Income-tax Act, 2025) — thresholds from 1 April 2025 — Income Tax Department
- 2Post Office Recurring Deposit Account — India Post
- 3CFA Program Curriculum — Quantitative Methods: The Time Value of Money — CFA Institute
Calculator ID BANK-RD-001 · version 1.0.0
Common questions
How is RD interest calculated?
Each instalment compounds quarterly for the time it's invested. ₹10,000 a month for 5 years at 7 % grows to about ₹7.2 lakh — ₹6 lakh deposited plus about ₹1.2 lakh interest.
RD or SIP?
An RD gives a guaranteed, fixed return; a SIP in an equity fund can earn more over long periods but isn't guaranteed and can fall in value.
Is RD interest taxable?
Yes, at your slab rate, and banks deduct TDS once a year's interest crosses ₹50,000 (₹1 lakh for seniors).