RD Calculator
A Recurring Deposit (RD) is the savings-account version of an FD. Instead of depositing a lump sum, you contribute a fixed amount every month. Perfect for building an emergency fund or saving for a specific goal.
💡 RD vs FD vs SIP
RD: Safe, guaranteed returns, monthly investment. FD: Lump sum, guaranteed. SIP: Market-linked, potentially higher returns over long term, with risk.
RD Details
2 yr 0 mo
RD Maturity Summary
- Maturity Amount
- ₹1.28 L
- Total Interest
- ₹8,425
- Total Deposited
- ₹1.20 L
- Monthly Deposit
- ₹5,000
Month-wise Projection
Frequently Asked Questions
What is a Recurring Deposit?
A Recurring Deposit (RD) is a savings product where you deposit a fixed amount every month for a chosen tenure. The bank compounds interest quarterly and pays the total (principal + interest) at maturity.
How is RD interest calculated?
RD uses quarterly compounding. Each monthly instalment earns interest from the date of deposit till maturity. The formula accounts for different investment periods for each instalment.
Is RD better than a savings account?
Yes, RDs typically offer 2–3% higher interest than savings accounts. They also enforce savings discipline since you commit to a monthly deposit.
Can I miss an RD instalment?
Missed instalments attract a penalty (usually ₹1.5 per ₹100 per month). Multiple missed instalments may result in premature closure of the account.
Is RD interest taxable?
Yes, RD interest is taxable as income from other sources at your slab rate. TDS is deducted if total interest exceeds ₹40,000 in a financial year.