RD Calculator - Recurring Deposit Maturity Calculator
Calculate your recurring deposit maturity amount and interest earnings with our free RD calculator. Plan monthly investments with accurate RD calculations in India.
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Calculate Your RD Returns
Investment vs Interest
Total Investment
₹1,20,000
Total Interest
₹8,425
Maturity Amount
₹1,28,425
RD @ 7.50% Interest
Start with ₹500/month
Save this calculation and set a reminder for RD maturity
What is Recurring Deposit (RD)?
Recurring Deposit (RD) is a term deposit offered by banks where you deposit a fixed amount every month for a predetermined tenure. It is ideal for individuals who want to save a small amount regularly and earn higher interest than a savings account. RD combines the discipline of regular saving with the benefit of compound interest.
Unlike Fixed Deposits where you need a lump sum, RD allows you to build a corpus through monthly installments. This makes it accessible to salaried individuals and those who don't have large amounts to invest at once. RD tenure typically ranges from 6 months to 10 years.
How RD Interest is Calculated
RD interest is calculated using compound interest, typically compounded quarterly. Each monthly deposit earns interest based on how long it remains in the account until maturity.
M = P × [(1 + r/n)^(n×t) - 1] / [1 - (1 + r/n)^(-1/3)]
- M = Maturity Amount
- P = Monthly Deposit
- r = Annual Interest Rate
- n = Compounding Frequency (4 for quarterly)
- t = Tenure in Years
Example RD Calculation
- Monthly Deposit: ₹10,000
- Interest Rate: 6.5% p.a.
- Tenure: 36 months (3 years)
- Total Investment: ₹3,60,000
- Maturity Amount: ₹3,97,023
- Total Interest: ₹37,023
Benefits of Recurring Deposit
- Disciplined Saving: Forces regular monthly savings
- Low Entry Point: Start with as little as ₹100/month
- Guaranteed Returns: Fixed interest rate for entire tenure
- Flexible Tenure: Choose from 6 months to 10 years
- Safe Investment: Bank RDs are insured up to ₹5 lakhs
- Loan Facility: Get loan against RD up to 90% of balance
RD vs SIP: Which is Better?
| Feature | RD | SIP |
|---|---|---|
| Returns | Fixed (6-7%) | Variable (10-15%) |
| Risk | Very Low | Medium-High |
| Lock-in | Yes (with penalty) | No (except ELSS) |
| Tax Benefit | 5-year RD (80C) | ELSS SIP (80C) |
RD Investment Tips
- Compare rates across banks; small finance banks often offer higher rates
- Set up auto-debit to never miss a monthly installment
- Missing installments attracts penalty and reduces effective returns
- Consider post office RD for slightly higher rates with government backing
- Link RD to specific goals like vacation, gadget purchase, or emergency fund
Frequently Asked Questions
Disclaimer
This calculator is provided for informational purposes only. The results are estimates and should not be considered as financial advice. Actual values may vary based on various factors. Please consult a certified financial advisor before making any financial decisions.
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Quick Tips
- Use the sliders for quick adjustments
- Compare different scenarios to find the best option
- Download PDF to save your calculations
- Share results with family for financial planning