RD Calculator

A recurring deposit is a monthly commitment: the same rupee amount, every month, for a fixed tenure, at a bank or post-office RD rate. It is the savings-account cousin of a SIP, without NAV risk. This page treats the RD as a monthly annuity that compounds at the annual rate you type, matching the spirit of bank RD calculators if not every bank’s exact day-count.

The cash-flow question

Shopkeepers in Madurai and salaried staff in Bhopal still open RDs to earmark a festival or a school admission. ₹5,000 a month for five years at 7% is a realistic “can I keep this debit going?” test. The maturity of about ₹3,60,053 on ₹3,00,000 invested shows why RD is popular when people do not want equity volatility.

The maths on this page

The monthly future-value annuity is the same shape as the SIP formula, using the RD rate instead of an expected market return. Defaults: ₹5,000 a month, 7% a year, 5 years, n = 60. Estimated maturity ≈ ₹3,60,053, interest ≈ ₹60,053.

Banks may use quarterly compounding or a prescribed RD formula in their CBS. Expect a few rupees of difference versus this sketch. Premature closure usually cuts the rate.

RD interest is generally taxable like FD interest. Post Office RD is a separate product with its own notified rate. Check indiapost.gov.in for the postal variant.

₹5,000 a month RD in Madurai for a wedding fund

Lakshmi in Madurai starts a five-year RD of ₹5,000 a month at 7% to keep a niece’s wedding fund away from the shop till. The sketch shows about ₹3.60 lakh at maturity on ₹3 lakh of deposits. She sets the standing instruction on payday so the RD does not compete with inventory purchases.

What a bank still has to confirm

Bank-specific compounding, penalty rates and loan-against-RD features are omitted. Rates are inputs, not live quotes from any scheduled bank.

Common questions

How is an RD different from a SIP in a debt fund?

RD returns are contractual at the deposit rate (subject to premature penalty). A debt-fund SIP’s NAV can move, and exits can have loads and capital-gains tax. RD is a bank or post-office deposit, not a market product.

Can I skip a month?

Most banks levy a penalty or extend tenure. Rules are in the RD account terms. This calculator assumes every instalment is paid on time.

Is Post Office RD the same 7%?

Postal RD rates are notified separately and change. Look up the current circular on indiapost.gov.in rather than copying a bank FD rate into a postal product.