Recurring Deposit (RD) Calculator India 2025-26
Calculate your RD maturity with quarterly compounding. Compare bank rates & plan your monthly savings.
Min: ₹500 | Max: ₹1,00,000
Range: 1% – 15% p.a.
Min: 1 year | Max: 30 years
Quick Fill: Current Bank Rates (2025)
Maturity Amount
₹ 8,44,831
🏦 Real RD Examples from India
See how different Indians are using RD to achieve their financial goals
College Student
Priya – Engineering Student, Mumbai
Goal: Save for laptop & certification
Monthly Deposit: ₹2,000
Tenure: 3 years (36 months)
Bank: SBI RD @ 6.5%
💰 Results:
Total Invested: ₹72,000
Interest Earned: ₹7,508
Maturity: ₹79,508
Perfect for students building financial discipline!
Working Professional
Amit – Software Engineer, Bangalore
Goal: Emergency fund
Monthly Deposit: ₹5,000
Tenure: 5 years (60 months)
Bank: HDFC RD @ 7.0%
💰 Results:
Total Invested: ₹3,00,000
Interest Earned: ₹61,074
Maturity: ₹3,61,074
Safe alternative to volatile markets for emergency fund
Middle-Class Family
Sharma Family – Delhi
Goal: Child’s education
Monthly Deposit: ₹10,000
Tenure: 10 years (120 months)
Bank: Post Office RD @ 7.3%
💰 Results:
Total Invested: ₹12,00,000
Interest Earned: ₹5,08,941
Maturity: ₹17,08,941
+ Section 80C tax benefit on Post Office RD!
Small Business Owner
Rajesh – Shop Owner, Chennai
Goal: Expand business
Monthly Deposit: ₹8,000
Tenure: 7 years (84 months)
Bank: ICICI RD @ 6.8%
💰 Results:
Total Invested: ₹6,72,000
Interest Earned: ₹1,95,728
Maturity: ₹8,67,728
Disciplined savings without market risk
Senior Citizen
Mr. Kumar (65) – Retired, Pune
Goal: Regular income supplement
Monthly Deposit: ₹15,000
Tenure: 5 years (60 months)
Bank: HDFC Senior RD @ 7.5%
💰 Results:
Total Invested: ₹9,00,000
Interest Earned: ₹1,86,780
Maturity: ₹10,86,780
0.5% extra interest rate for senior citizens!
Young Couple
Neha & Karan – Hyderabad
Goal: Home down payment
Monthly Deposit: ₹20,000
Tenure: 4 years (48 months)
Bank: Axis RD @ 6.9%
💰 Results:
Total Invested: ₹9,60,000
Interest Earned: ₹1,44,758
Maturity: ₹11,04,758
Guaranteed returns for home down payment goal
🔧 How RD Calculation Works
Understanding quarterly compounding and step-by-step calculation methodology
📋 Step-by-Step Calculation
Understand the Formula
RD uses compound interest with quarterly compounding:
P = Monthly deposit, r = Monthly rate, n = Months
Calculate Monthly Rate
Convert annual rate to monthly:
Monthly Rate = Annual Rate ÷ 12 ÷ 100
Example: 6.5% → 6.5/12/100 = 0.005417
Apply Compounding
Each installment compounds separately from its deposit date
1st installment: Full tenure | Last installment: 1 month only
Sum All Amounts
Add maturity values of all monthly installments
Total Maturity = Sum of all compounded installments
💡 Worked Example
📊 Input Values
- • Monthly Deposit: ₹5,000
- • Interest Rate: 6.5% p.a.
- • Tenure: 3 years (36 months)
- • Compounding: Quarterly
🔄 Calculation Steps
Step 1: Monthly Rate = 6.5% ÷ 12 = 0.5417%
Step 2: r = 0.5417 ÷ 100 = 0.005417
Step 3: n = 36 months
Step 4: Calculate using formula
✅ Final Results
Total Invested: ₹1,80,000
Interest Earned: ₹18,822
Maturity Amount: ₹1,98,822
Effective Returns: 10.46%
💡 Pro Tip: The first installment gets interest for full 36 months, while the last installment gets interest for only 1 month. This is why RD gives better returns than simple interest!
📐 Understanding the Mathematics
Standard RD Formula
M = Maturity Amount
P = Monthly Installment
i = Monthly Interest Rate (r/12/100)
n = Number of Months
Interest Calculation
Total Invested = Monthly × Months
Interest Earned = Maturity – Total Invested
Returns % = (Interest/Invested) × 100
Quarterly Compounding
Interest compounds 4 times per year (every 3 months)
Example:
Annual Rate: 7.2%
Quarterly Rate: 7.2% ÷ 4 = 1.8%
Effective Yield: Higher than simple interest!
Why Quarterly?
Most Indian banks compound RD interest quarterly to:
- Increase effective returns
- Match fixed deposit standards
- Remain competitive
- Benefit long-term savers
🏦 Current RD Interest Rates (FY 2025-26)
Compare rates from major Indian banks and institutions
| Bank/Institution | General Rate | Senior Citizen | Min Tenure | Max Tenure |
|---|---|---|---|---|
| Post Office RD | 7.3% | 7.3% | 5 years | 5 years (fixed) |
| SBI RD | 6.5% – 7.0% | 7.0% – 7.5% | 6 months | 10 years |
| HDFC Bank RD | 6.6% – 7.75% | 7.1% – 8.25% | 6 months | 10 years |
| ICICI Bank RD | 6.7% – 7.8% | 7.2% – 8.3% | 6 months | 10 years |
| Axis Bank RD | 6.5% – 7.5% | 7.0% – 8.0% | 6 months | 10 years |
| Kotak Mahindra RD | 6.5% – 7.6% | 7.0% – 8.1% | 6 months | 10 years |
* Rates as of October 2025. Subject to change. Senior citizen rates typically 0.5% higher. Interest compounded quarterly.
❓ Comprehensive FAQ
What is the typical RD interest rate in India for FY 2025-26?
Rates range from 6.5% to 7.8% p.a. for general customers. Post Office RD offers fixed 7.3%. Senior citizens get 0.5% extra (7.0-8.3%).
How does quarterly compounding work in RD?
Interest is calculated and added to principal every 3 months (4 times per year). This means your interest earns interest, increasing effective returns compared to simple interest.
Is RD interest taxable?
Yes, fully taxable as ‘Income from Other Sources’. TDS of 10% applies if interest exceeds ₹50,000/year (increased in Budget 2025 from ₹40,000). Exception: Post Office RD principal qualifies for Section 80C deduction.
Can I withdraw RD before maturity?
Yes, after minimum 3-6 months (bank-specific). Penalty applies: interest paid at savings account rate (3-4%) instead of RD rate. Some banks deduct 1% penalty on accrued interest.
What happens if I miss an RD installment?
Penalty of ₹1-2 per ₹100 per month for default. If 3-4 consecutive months missed, account may be discontinued. Can revive by paying all dues with penalty.
Can I take a loan against my RD?
Yes! After 1 year, most banks offer loans up to 80-90% of RD value. Interest charged: typically 2% above RD rate. RD continues earning interest during loan period.
What’s better for short-term savings: RD or FD?
RD: Best if you don’t have lump sum. Monthly discipline. Suitable for salary earners.
FD: Better if you have lump sum ready. Slightly higher rates (0.25-0.5%). No missed payment risk.
How does Budget 2025 affect RD investments?
Major benefit: TDS exemption limit increased to ₹50,000/year (from ₹40,000). Most small RD investors won’t face TDS deduction, improving net returns by avoiding advance tax deduction.
Can I open multiple RD accounts?
Yes! No limit on number of RD accounts. Can open across multiple banks with different tenures and amounts. Useful for diversifying maturity dates to meet different financial goals.
What documents are needed to open RD?
Basic requirements: PAN card, Aadhaar, Address proof, Recent photo. If you have existing savings account with the bank, RD opening is instant with just a form.
Can I increase my monthly RD amount?
No, monthly amount is fixed for entire tenure. However, you can open a second RD account with higher amount if your income increases.
Is nomination mandatory for RD account?
Highly recommended but not mandatory. Nomination ensures smooth transfer to nominee in case of depositor’s death. Can be done at account opening or later.
❓ Frequently Asked Questions
Everything you need to know about Recurring Deposit (RD) Calculator
Q1. How accurate are the calculator results?
Our calculators use industry-standard financial formulas validated against RBI guidelines and financial planning standards. Results are accurate for the inputs provided. Real-world outcomes may vary due to changing interest rates, market conditions, and regulatory changes.
Q2. Are my inputs stored or shared?
No. All calculations happen entirely in your browser. We do not store, transmit, or share any financial data you enter. Each calculator session is private and temporary — refreshing the page resets all inputs.
Q3. How often is this calculator updated?
Our calculators are updated in line with major financial events: Union Budget announcements, RBI REPO rate changes, SEBI regulations, and quarterly government scheme rate revisions. Check the "Last Updated" date on each calculator.
Q4. What should I do after getting the calculator results?
Calculator results are for planning and comparison purposes. For major financial decisions (above ₹5 lakh), consult: a SEBI-registered investment advisor (RIA) for investment decisions, a Chartered Accountant (CA) for tax planning, or a bank/NBFC for loan-related decisions.
Q5. Can I use this calculator for filing ITR or official submissions?
No. These calculators provide estimates for financial planning only. For official tax submissions, use the Income Tax Department portal (incometax.gov.in). For loan applications, use the official lender’s published rates and terms. Our calculations should not be used as official financial documentation.
Q6. What is the difference between gross return and XIRR?
Gross return calculates total percentage gain from start to end. XIRR (Extended Internal Rate of Return) accounts for the timing of cash flows (useful for SIP where you invest different amounts at different times). XIRR gives the equivalent annual compounded return — it’s the most accurate metric for comparing investments.
Q7. How do I calculate inflation-adjusted real returns?
Real Return = [(1 + Nominal Return%) / (1 + Inflation%)] − 1. Example: FD at 7% with 6% inflation gives real return of [(1.07/1.06)−1] = 0.94% — barely positive. Equity at 12% with 6% inflation gives real return of [(1.12/1.06)−1] = 5.66% — the actual increase in purchasing power.
Q8. Should I consult a financial advisor before making investment decisions?
Yes, for significant financial decisions. Find SEBI-registered Investment Advisors at sebi.gov.in under "Intermediaries/Market Infrastructure Institutions." Fee-only advisors (who charge a flat fee rather than commission) give unbiased advice. This calculator helps you understand numbers; an advisor helps with comprehensive planning.
Q9. What is compound interest and why does it matter?
Compound interest is interest calculated on both the principal and previously earned interest. Einstein reportedly called it the "8th wonder of the world." ₹1 lakh at 12% simple interest for 30 years = ₹4.6 lakh. At 12% compound interest for 30 years = ₹29.96 lakh. Compounding creates exponential, not linear, growth.
Q10. What is the difference between absolute return and CAGR?
Absolute return = (Final Value − Initial Value) / Initial Value × 100%. CAGR = [(Final Value/Initial Value)^(1/years) − 1] × 100%. An investment doubling in 10 years gives 100% absolute return but only 7.18% CAGR. Always use CAGR for comparing investments of different tenures.
Q11. How reliable are historical return assumptions for future projections?
Historical returns are the best guide available but are NOT guaranteed. Nifty 50 has delivered ~12% CAGR over 20-year periods historically, but individual years vary from -60% to +80%. Our calculators use your entered rate — use conservative assumptions (10-11% for equity, 6-7% for debt) for financial planning.
Q12. What are the key financial ratios I should know for investments?
P/E ratio (Price-to-Earnings): lower = cheaper stock. P/B ratio (Price-to-Book): <1 often undervalued. Expense ratio (for mutual funds): lower = more returns to you. FOIR (Fixed Obligation to Income Ratio): <40% = healthy EMI load. CIBIL score: >750 = best loan terms. Knowing these helps decode financial documents.
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Calculator Disclaimer
For Informational Purposes Only: The Recurring Deposit (RD) Calculator provides estimates based on the inputs you enter and standard financial formulas. Results are indicative only and do not constitute financial advice.
Not a Guarantee: Actual returns, tax liability, or financial outcomes may differ due to market conditions, regulatory changes, or individual circumstances not captured in the calculator.
Professional Advice: For significant financial decisions, please consult a SEBI-registered Investment Advisor, Chartered Accountant, or certified financial planner.
Data Currency: All rates, slabs, and parameters are updated periodically. Verify current rates from official sources (RBI, SEBI, Income Tax Department, IRDAI) before making decisions.
Last Updated: 17 Jun 2026 | Data Source: RBI, SEBI, Income Tax Act 1961, IRDAI | Maintained by CalcWise.Finance