Calculate your RD maturity amount and interest earnings with our easy-to-use calculator. Compare rates from top banks.
On 12 months RD at 6.5% p.a.
₹60,000.00
₹2,143.23
A Recurring Deposit (RD) is a special type of term deposit offered by banks that helps people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to fixed deposits. It's similar to FDs but with monthly deposits instead of a lump sum.
The RD calculator uses the following formula to calculate maturity amount:
M = R × [(1 + r/n)^(nt) - 1] / (1 - (1 + r/n)^(-1/3))
Where:
| Bank | 6 Months (%) | 1 Year (%) | 5 Years (%) |
|---|---|---|---|
| SBI | 5.50 | 6.50 | 6.70 |
| HDFC Bank | 5.75 | 6.75 | 7.00 |
| ICICI Bank | 5.60 | 6.60 | 6.90 |
| Axis Bank | 5.80 | 6.80 | 7.10 |
RD interest is calculated on each monthly deposit separately since they are deposited at different times. FD interest is calculated on the entire lump sum deposited at once. Generally, FDs offer slightly higher rates than RDs for the same tenure.
The minimum amount varies by bank but is typically ₹100-₹500 per month. Some banks may have higher minimums around ₹1,000. There's usually no upper limit, but banks may have different tiers for higher deposits.
No, the monthly deposit amount is fixed when you open the RD and cannot be changed during the tenure. If you need to change the amount, you would need to close the current RD and open a new one.
Most banks charge a penalty for missed payments (typically ₹50-₹100 per missed installment). After a certain number of missed payments (usually 3-6), the bank may convert your RD to a regular savings account or close it prematurely.
Yes, interest earned on RDs is taxable as per your income tax slab, similar to FDs. Banks deduct TDS if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. There is no tax-saving RD option like there is for FDs.