RD Calculator – Recurring Deposit Calculator Online
Calculate your Recurring Deposit maturity amount and interest with our free RD calculator. Compare RD interest rates from SBI, HDFC, ICICI, Post Office and all major banks in India.
RD Calculator Input
Maturity Details
Investment Breakdown
What is Recurring Deposit (RD)?
A Recurring Deposit (RD) is a popular investment option offered by banks and post offices in India that allows you to deposit a fixed amount every month for a predetermined tenure and earn interest on it. RD is an excellent savings tool for salaried individuals and people with regular income who want to build a corpus through disciplined monthly investments.
Recurring deposits combine the benefits of regular savings with the interest rates of fixed deposits, making them ideal for those who cannot invest a lump sum amount but can save small amounts regularly. RD accounts are considered one of the safest investment options in India as they are backed by banks and offer guaranteed returns.
How Does RD Calculator Work?
The RD calculator uses the compound interest formula to calculate the maturity amount on your recurring deposit. The interest on RD is compounded quarterly in most banks, which means the interest earned in each quarter is added to the principal for the next quarter's calculation.
M = P × [(1 + i)n - 1] / [1 - (1 + i)(-1/3)]
M = Maturity Amount | P = Monthly Deposit | i = Quarterly interest rate | n = Number of quarters
Bank-Wise RD Interest Rates 2025
| Bank / Institution | Interest Rate (% p.a.) | Senior Citizen Rate |
|---|---|---|
| SBI (State Bank of India) | 6.50% - 7.00% | 7.00% - 7.50% |
| HDFC Bank | 6.00% - 7.25% | 6.50% - 7.75% |
| ICICI Bank | 6.25% - 7.00% | 6.75% - 7.50% |
| Axis Bank | 6.50% - 7.15% | 7.00% - 7.65% |
| Punjab National Bank (PNB) | 6.75% - 7.10% | 7.25% - 7.60% |
| Bank of Baroda (BOB) | 6.50% - 7.05% | 7.00% - 7.55% |
| Canara Bank | 6.70% - 7.20% | 7.20% - 7.70% |
| Post Office RD | 6.70% | 6.70% |
| Indian Bank | 6.50% - 7.00% | 7.00% - 7.50% |
| Union Bank of India | 6.75% - 7.20% | 7.25% - 7.70% |
Benefits of Recurring Deposit
- Disciplined Savings: RD encourages regular monthly savings, helping you build a corpus systematically
- Lower Entry Barrier: You can start an RD with as little as ₹100 per month in most banks
- Guaranteed Returns: RD offers fixed interest rates, ensuring predictable returns
- No Market Risk: Unlike mutual funds or stocks, RD returns are not affected by market volatility
- Flexible Tenure: Choose tenure from 6 months to 10 years based on your financial goals
- Loan Facility: Most banks offer loans against RD up to 80-90% of the deposit value
- Auto-Debit Convenience: Monthly installments can be auto-debited from your savings account
- Senior Citizen Benefits: Higher interest rates (usually 0.50% more) for senior citizens
- Tax Benefits: TDS deduction at source (if interest exceeds ₹40,000 annually)
RD vs FD vs SIP Comparison
| Feature | Recurring Deposit (RD) | Fixed Deposit (FD) | SIP (Mutual Fund) |
|---|---|---|---|
| Investment Type | Monthly deposits | One-time lump sum | Monthly investments |
| Returns | Fixed (6-7.5%) | Fixed (6.5-8%) | Market-linked (10-15%*) |
| Risk | Zero risk | Zero risk | Market risk |
| Liquidity | Premature withdrawal allowed | Premature withdrawal allowed | Can redeem anytime |
| Minimum Amount | ₹100/month | ₹1,000 one-time | ₹500/month |
| Tax Benefits | No tax saving | Tax saver FD (5 years) | ELSS has tax benefits |
| Best For | Monthly savers, risk-averse | Lump sum investors | Long-term wealth creation |
How to Open RD Account Online
- Internet Banking: Log in to your bank's net banking portal and navigate to the RD section
- Select Amount & Tenure: Choose your monthly deposit amount and investment tenure
- Choose Auto-Debit: Link your savings account for automatic monthly deductions
- Confirm Details: Review all details including interest rate and maturity amount
- Submit: Complete the process and receive RD account number via SMS/email
RD Premature Withdrawal Rules
Most banks allow premature withdrawal of RD after a minimum lock-in period (usually 3-6 months). However, premature withdrawal comes with penalties:
- Penalty ranging from 0.5% to 1% on the interest rate
- Some banks may charge a processing fee
- Interest is calculated at the rate applicable for the period the RD was active
- Post Office RD has stricter rules with penalties for early closure
Tax Implications on RD
Interest earned on recurring deposits is fully taxable as per your income tax slab. Here are the key tax points:
- TDS Deduction: If annual interest exceeds ₹40,000 (₹50,000 for senior citizens), 10% TDS is deducted
- Form 15G/15H: Submit these forms if your total income is below taxable limit to avoid TDS
- No Tax Exemption: Unlike PPF or ELSS, RD interest is not eligible for tax deduction under Section 80C
- Quarterly Tax: Interest is calculated quarterly but taxed annually
Who Should Invest in RD?
- Salaried Employees: Perfect for those with stable monthly income wanting disciplined savings
- Risk-Averse Investors: Ideal for those who prefer guaranteed returns over market-linked investments
- Short-Term Goals: Suitable for goals like vacation, gadget purchase, or emergency fund (1-5 years)
- Beginners: Excellent starting point for those new to systematic investing
- Senior Citizens: Good option for retirees seeking safe, predictable monthly income source
- Parents: Can open RD for children's future education or marriage expenses
Tips to Maximize RD Returns
- Compare Interest Rates: Different banks offer different rates - shop around for the best rate
- Consider Post Office RD: Often competitive rates with government backing
- Senior Citizen Advantage: If eligible, leverage the additional 0.5% interest rate
- Longer Tenure: Generally, longer tenures attract higher interest rates
- Avoid Premature Withdrawal: Complete the full tenure to get maximum returns
- Auto-Debit Setup: Avoid missed payments that can lead to penalties
- Quarterly Compounding: Choose banks that compound interest quarterly for better returns
Frequently Asked Questions (FAQs)
Q1. What is the minimum and maximum amount for RD?
The minimum RD amount varies by bank, typically starting from ₹100 to ₹500 per month. There is usually no maximum limit, but some banks may have caps. Post Office RD can be opened with a minimum of ₹100 per month.
Q2. Can I withdraw my RD before maturity?
Yes, premature withdrawal is allowed after a minimum period (usually 3-6 months). However, banks charge a penalty of 0.5-1% on the interest rate, and you'll receive reduced interest for the period the RD was active.
Q3. What happens if I miss an RD installment?
If you miss an RD installment, banks typically charge a penalty ranging from ₹1.50 to ₹5 per ₹100 of the installment. Continuous default for 3-4 months may lead to account closure. It's best to set up auto-debit to avoid missing payments.
Q4. How is RD interest calculated?
RD interest is calculated using compound interest formula with quarterly compounding. The formula is: M = P × [(1 + i)^n - 1] / [1 - (1 + i)^(-1/3)], where M is maturity amount, P is monthly deposit, i is quarterly interest rate, and n is number of quarters.
Q5. Is RD better than FD?
RD is better for those who cannot invest a lump sum and prefer monthly savings. FD is suitable for those who have a lump sum amount. RD builds saving discipline while FD offers slightly higher returns. Choose based on your cash flow and investment capacity.
Q6. Can I get a loan against my RD?
Yes, most banks offer loans against RD up to 80-90% of the deposit value. The interest rate on such loans is typically 1-2% higher than the RD interest rate. The RD serves as collateral for the loan.
Q7. What is the tenure for RD?
RD tenure typically ranges from 6 months to 10 years, depending on the bank. Post Office RD has a fixed tenure of 5 years. Some banks offer flexible tenures allowing you to choose any duration between the minimum and maximum period.
Q8. Do senior citizens get higher interest on RD?
Yes, most banks offer an additional 0.50% interest rate for senior citizens (aged 60 years and above) on RD. For example, if the regular RD rate is 6.5%, senior citizens get 7.0%. This benefit is available at most public and private sector banks.
Q9. Is TDS deducted on RD interest?
Yes, TDS at 10% is deducted if the total interest earned on all RD/FD accounts with a bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Q10. Can I open multiple RD accounts?
Yes, you can open multiple RD accounts with the same bank or different banks. There is no restriction on the number of RD accounts. This helps in diversifying your savings across different tenures and goals.
Q11. What is Post Office RD interest rate?
Post Office RD currently offers 6.7% interest per annum (subject to quarterly revision). Post Office RD has a fixed tenure of 5 years and requires a minimum monthly deposit of ₹100. The maximum limit is ₹1,00,000 per month.
Q12. Can I open RD for my child?
Yes, you can open an RD account in the name of a minor child. For children below 10 years, a guardian operates the account. After 10 years, the child can operate the account themselves. This is a great way to save for your child's education or future needs.
Q13. What documents are required to open RD?
To open an RD account, you need: (1) Savings account with the bank, (2) PAN card, (3) Aadhaar card, (4) Address proof, (5) Passport-size photographs. Existing account holders can open RD online through net banking without additional documentation.
Q14. Is RD interest rate fixed or variable?
RD interest rate is fixed for the entire tenure at the time of account opening. Even if the bank changes its RD rates during your tenure, your RD will continue to earn interest at the original locked-in rate. This provides certainty of returns.
Q15. Can NRIs open RD accounts in India?
Yes, NRIs can open NRE (Non-Resident External) or NRO (Non-Resident Ordinary) RD accounts in India. NRE RD interest is tax-free while NRO RD interest is taxable. The tenure, interest rates, and other features are similar to resident RD accounts.
Q16. What is the difference between RD and SIP?
RD is a bank deposit with guaranteed fixed returns (6-7.5%), zero risk, and suited for short-term goals. SIP is a mutual fund investment with market-linked returns (potentially 10-15%), higher risk, and better for long-term wealth creation. RD is safer; SIP offers potentially higher returns.
Q17. Can I increase or decrease my monthly RD amount?
No, the monthly RD installment amount is fixed at the time of account opening and cannot be changed during the tenure. If you want to save more, you can open an additional RD account. Some banks offer flexi RD where amount modification is allowed.
Q18. What is the penalty for RD premature closure?
Banks typically charge 0.5-1% penalty on the interest rate for premature RD closure. For example, if the RD rate is 7%, you'll get 6-6.5% for the period held. Post Office RD has stricter penalties, especially if closed before 3 years.
Q19. Which bank gives the highest RD interest rate?
Small finance banks like Ujjivan, Equitas, AU, and Utkarsh typically offer higher RD rates (7.5-8.5%) compared to major banks. Post Office offers competitive rates around 6.7%. Always compare current rates as they change quarterly based on RBI policy.
Q20. Is RD amount safe and insured?
Yes, RD deposits in banks are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation) up to ₹5 lakh per depositor per bank. Post Office RD is backed by the Government of India, making it one of the safest investment options.
Q21. How is RD maturity amount calculated with our calculator?
Our RD calculator uses the standard compound interest formula with quarterly compounding. Enter your monthly deposit, interest rate, and tenure, and the calculator instantly shows total investment, interest earned, and maturity amount. It's 100% accurate and follows RBI guidelines.
Q22. Can I renew my RD after maturity?
Yes, most banks allow RD renewal at maturity at the prevailing interest rate. You can renew for the same or different tenure. Some banks offer auto-renewal facility where the maturity amount is reinvested as a new RD.
Q23. What is flexi RD?
Flexi RD or variable RD allows you to vary your monthly installment amount within certain limits. For example, you can deposit ₹5,000 one month and ₹10,000 the next. Not all banks offer this feature. Regular RD has a fixed monthly amount.
Q24. How to check RD balance online?
Log in to your bank's net banking or mobile app, go to "Deposits" or "RD" section, and view your RD account details including balance, maturity amount, and tenure. You can also check via passbook, ATM, or by calling customer care.
Q25. Are there any charges for opening RD account?
Most banks do not charge any account opening fee for RD. However, some banks may charge a nominal processing fee (₹50-₹100). Charges may apply for cheque book, premature closure, default in payment, and loan against RD.
RD Calculator - Key Takeaways
- Use our free online RD calculator to instantly calculate maturity amount and interest earnings
- RD offers guaranteed returns with zero market risk, perfect for conservative investors
- Compare interest rates across banks - currently ranging from 6% to 8.5% per annum
- Post Office RD offers competitive 6.7% interest with government backing
- Senior citizens get additional 0.50% interest rate in most banks
- Start RD with as little as ₹100 per month - ideal for all income levels
- Premature withdrawal allowed but with 0.5-1% penalty
- RD interest is fully taxable; TDS applicable if interest exceeds ₹40,000
- Set up auto-debit to ensure timely monthly deposits and avoid penalties
- For higher returns and wealth creation, consider combining RD with SIP investments
Disclaimer: The RD calculator provides estimates based on the inputs provided. Actual returns may vary slightly due to rounding, bank-specific calculation methods, and TDS deductions. Interest rates are indicative and subject to change. Always verify current rates with your bank before investing. This calculator is for informational purposes only and should not be considered as financial advice.