RD Calculator
Calculate the maturity value of your Recurring Deposit (RD). Plan your monthly savings goal effectively.
Recurring Deposit Details
Maturity Details
Maturity Value
₹0
Why Choose Recurring Deposit?
Recurring Deposits are the perfect tool for disciplined savings without the risk of the stock market.
Benefits
- Small Starts: You can start with as little as ₹500/month.
- Guaranteed Returns: Unlike mutual funds, RD returns are fixed and guaranteed at the time of opening.
- Liquidity: You can close it anytime or take a loan against it for emergencies.
- Goal Planning: Perfect for short-term goals like a vacation next year, paying insurance premiums, or buying a new phone.
RD vs SIP
- RD: Risk-free, Guaranteed Returns (~6-7.5%), Taxable.
- SIP: Market Risk, Variable Returns (10-15% potential), Tax efficient (LTCG).
- Choose RD for safety, SIP for wealth creation.
Frequently Asked Questions
What is a Recurring Deposit (RD)?
Recurring Deposit (RD) is a savings scheme offered by banks and post offices where you deposit a fixed amount every month for a pre-defined tenure and earn interest.
Is RD better than Fixed Deposit (FD)?
It depends on your cash flow. If you have a lump sum, FD is better. If you want to save a small portion of your monthly income systematically, RD is the best choice.
Is RD interest taxable?
Yes, interest earned on RD is fully taxable under 'Income from Other Sources'. Banks also deduct TDS (Tax Deducted at Source) if the interest exceeds ₹40,000 (₹50,000 for seniors) in a year.
Can I miss an RD installment?
If you miss a monthly installment, the bank may charge a penalty (usually ₹1 to ₹2 per ₹100). If you miss multiple payments, the bank might close the account prematurely.
What is the minimum tenure for RD?
The minimum tenure for a bank RD is usually 6 months, and the maximum is 10 years. For Post Office RD, the tenure is fixed at 5 years.
Do Senior Citizens get extra interest?
Yes, almost all banks offer an additional interest rate of 0.50% to 0.75% for senior citizens over and above the regular rates.
Can I withdraw RD money before maturity?
Yes, premature withdrawal is allowed, but banks usually penalize you by deducting 0.5% to 1% from the applicable interest rate.
Can I take a loan against my RD?
Yes, most banks allow you to take a loan / overdraft of up to 90-95% of the balance in your RD account. The interest charged is slightly higher than the RD rate.
Is RD safe?
Yes, RDs in scheduled commercial banks are very safe. They are also covered under the DICGC insurance scheme up to ₹5 Lakhs (principal + interest) per bank per individual.
How is RD interest calculated?
Interest is calculated using the compound interest formula on a quarterly compounding basis. `A = P * (1 + R/N)^(Nt)` applied to each installment.