RD calculator

How RD interest is worked out

Banks and the post office add interest to a recurring deposit every quarter. Each monthly instalment earns interest for the months left until maturity, so your first instalment earns the most and your last earns the least. This calculator adds up every instalment that way, which is the method behind the standard RD formula.

For ₹5,000 a month for 12 months at 7%, you deposit ₹60,000 and get about ₹62,311 at maturity. A post office RD of ₹100 a month for 5 years at 6.7% matures at about ₹7,137.

RD or SIP?

An RD gives a fixed, known amount at the end. A SIP in a mutual fund can earn more or less, because market returns are not fixed. People often use an RD for a goal within a year or two, like a fee payment or a planned purchase.

Tax and missed instalments

• RD interest is taxed at your slab rate, and TDS applies the same way as on an FD: above ₹50,000 of interest a year from one bank, or ₹1,00,000 for senior citizens.
• Missing an instalment usually brings a small penalty, and missing several can close the account. Check your bank's rules.

An illustration only, not financial advice. Check the current rate with your bank or post office.

Questions