Maturity Amount
A Recurring Deposit (RD) is a disciplined investment option offered by banks for people who want to save a fixed amount every month. Unlike a Fixed Deposit (FD) where you need a lump sum, an RD allows you to build a corpus slowly. Our Recurring Deposit Calculator uses the standard quarterly compounding formula (used by most Indian banks) to show you exactly how much your small monthly savings will grow into. It is perfect for planning short-term goals like a vacation, buying a gadget, or paying insurance premiums.
Since the amount is deducted automatically every month, it instills a regular savings habit.
Banks pay interest on interest every quarter, boosting your final returns.
Returns are guaranteed by the bank and are not linked to volatile stock markets.
Choose a period ranging from 6 months to 10 years based on your financial goal.
Elderly investors usually get an additional 0.50% interest rate on RD schemes.
In India, RD interest is compounded quarterly. This means the interest earned in the first quarter is added to the principal for the next quarter. Our calculator simulates this by compounding the monthly installments individually based on the time they remain in the bank.
Yes. Interest earned on Recurring Deposits is fully taxable as per your income tax slab. Banks also deduct TDS (Tax Deducted at Source) at 10% if the interest income exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
If you miss a monthly payment, the bank may charge a penalty (usually ₹1.50 per ₹100 per month). Continued non-payment can lead to the closure of the RD account. It is advisable to enable auto-debit to avoid this.
The minimum tenure for a Recurring Deposit is usually 6 months, and the maximum is 10 years. You can choose the tenure in multiples of 3 months.
