Recurring Deposit (RD) Calculator India 2025
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.