Loading calculator...
Plan your short-term goals with our Recurring Deposit (RD) calculator. Estimate guaranteed maturity values with quarterly compounding for bank and post office RD schemes.
Total Investment
₹3.00 Lakh
Interest Earned
₹59,664
Maturity Value
After 5 Years Years
₹3.60 Lakh
Visualizing how your principal amount and interest grow over time.
A Recurring Deposit (RD) is one of the most popular risk-free investment options in India. It is offered by almost all banks and post offices. It allows you to deposit a fixed amount every month for a pre-determined period, earning a fixed interest rate.
Unlike SIPs in mutual funds, an RD guarantees your maturity amount. The interest rate is fixed at the time of opening and does not change regardless of market conditions.
RD is perfect for short-to-medium term goals like buying a gadget, a vacation, or building an emergency fund.
Most Indian banks compound RD interest quarterly. This means you earn interest on your interest every three months. Our calculator uses this standard formula to give you the exact maturity value.
Q: What is the minimum tenure for a Recurring Deposit?
Most banks offer RDs starting from 6 months up to 10 years.
Q: Is the interest earned on RD taxable?
Yes, interest earned on RD is fully taxable as per your income tax slab. Banks also deduct TDS (Tax Deducted at Source) if the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
Q: Can I withdraw money from RD before maturity?
Yes, premature withdrawal is possible, but banks usually charge a penalty of 0.5% to 1% on the applicable interest rate.
Leave a Reply
Your email address will not be published. Required fields are marked *
No comments yet. Be the first to share your thoughts!