RD Calculator
Calculate maturity value of your Recurring Deposit
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a savings scheme offered by banks and post offices in India where you deposit a fixed amount every month for a predetermined tenure. At maturity, you receive the total deposited amount along with the interest earned. RDs are regulated by RBI and combine the regularity of monthly savings with the higher returns of fixed deposits.
Post Office RDs offer a government-backed option with attractive rates (currently 6.7% p.a., compounded quarterly), accessible at any India Post office without the need for a savings account.
RD Interest Formula
RD interest is compounded quarterly. Each monthly instalment earns interest from the month it is deposited until maturity. The calculation treats each deposit as a mini-FD for the remaining tenure:
n = Number of months remaining for that instalment at maturity
Sum is taken over all n instalments
RD vs SIP: Key Differences
| Feature | RD | SIP (Mutual Fund) |
|---|---|---|
| Returns | Fixed (5–7%) | Market-linked (8–15%+) |
| Risk | None | Market risk |
| DICGC Insurance | Yes (up to ₹5L) | No |
| Tax on Returns | Fully taxable at slab rate | LTCG 12.5% (equity, >1yr) |
| Best For | Short-term goals, risk-averse | Long-term wealth creation |
Post Office RD vs Bank RD in India
| Feature | Post Office RD | Bank RD |
|---|---|---|
| Interest Rate (2025) | 6.7% p.a. | 5.5–8.5% (varies by bank) |
| Tenure | 5 years (fixed) | 6 months to 10 years |
| Minimum Deposit | ₹100/month | ₹100–₹500/month |
| Safety | Sovereign government guarantee | DICGC insured up to ₹5L |
| TDS | No TDS deducted | TDS if annual interest > ₹40,000 |
| Best for | Safety, no TDS paperwork | Flexibility, higher rates at SFBs |
Post Office RD's no-TDS advantage matters for investors in high tax brackets — no Form 15G/15H required, no TDS certificate tracking, and no deposit insurance cap given the sovereign guarantee.