🏦
RD Calculator
Recurring Deposit Maturity · Quarterly compounding · Bank rates 2026 · RD vs FD vs SIP
Monthly depositsQuarterly compoundingMonth-by-month schedulevs FD & SIP
Enter your RD details
₹
₹100₹5L
%
4%12%
months
6120
= 3 yrs
Compounding method: Quarterly (standard for all Indian bank RDs and post office RDs)
Maturity amount
₹2.01 L
after 3 yrs
Total deposited
₹1.80 L
₹5,000/month × 36
Interest earned
₹20,815
11.6% of deposits
Formula used
M = R × {[(1 + i)ⁿ − 1] / [1 − (1 + i)^(−1/3)]}
M = Maturity amount
R = Monthly deposit (₹5,000)
i = Quarterly rate (7% ÷ 4 ÷ 100 = 0.017500)
n = Number of quarters (12)
Maturity = ₹2.01 L · Interest earned = ₹20,815
Balance growth - month by month
InterestDeposits
Month 1Maturity: ₹2.01 LMonth 36
Month-by-month RD statement
Showing first 12 months
| Month | Deposit | Interest for month | Closing balance | Total deposited |
|---|---|---|---|---|
| 1 | ₹5,000 | ₹29 | ₹5,029 | ₹5,000 |
| 2 | ₹5,000 | ₹59 | ₹10,088 | ₹10,000 |
| 3 | ₹5,000 | ₹88 | ₹15,176 | ₹15,000 |
| 4 | ₹5,000 | ₹118 | ₹20,293 | ₹20,000 |
| 5 | ₹5,000 | ₹148 | ₹25,441 | ₹25,000 |
| 6 | ₹5,000 | ₹178 | ₹30,618 | ₹30,000 |
| 7 | ₹5,000 | ₹208 | ₹35,826 | ₹35,000 |
| 8 | ₹5,000 | ₹238 | ₹41,064 | ₹40,000 |
| 9 | ₹5,000 | ₹269 | ₹46,333 | ₹45,000 |
| 10 | ₹5,000 | ₹299 | ₹51,633 | ₹50,000 |
| 11 | ₹5,000 | ₹330 | ₹56,963 | ₹55,000 |
| 12 | ₹5,000 | ₹361 | ₹62,324 | ₹60,000 |
RD vs FD vs SIP - which is better for ₹5,000/month?
Same monthly amount (₹5,000) invested for 3 yrs
Recurring Deposit
Monthly deposit₹5,000
Rate7% (guaranteed)
Total deposited₹1.80 L
Interest earned₹20,815
Maturity
₹2.01 L
Zero risk · Guaranteed
VS
FD (lumpsum)
One-time deposit₹1.80 L
Rate7% (same rate)
Tenure3 yrs
Interest earned₹41,659
Maturity
₹2.22 L
Higher than RD · Needs lumpsum
VS
SIP (equity 12%)
Monthly SIP₹5,000
Expected return12% (historical avg)
Total invested₹1.80 L
Gains₹37,538
Maturity (est.)
₹2.18 L
Not guaranteed · Market risk
Key insight: FD beats RD at the same rate (because lumpsum is invested earlier and compounds longer). SIP at 12% beats both for horizons above 3 years - but carries market risk. RD is best when you don't have a lumpsum available and want guaranteed monthly savings discipline.
RD interest rates - Indian banks 2026
All rates are annual, compounded quarterly. Senior citizens get 0.25–0.75% extra.
| Bank | 1 yr | 2 yrs | 3 yrs | 5 yrs | Sr. citizen |
|---|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 6.60% | 7.25% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.20% | 7.00% | 7.00% | +0.50% |
| Axis Bank | 6.70% | 7.25% | 7.10% | 7.00% | +0.75% |
| Kotak Mahindra | 7.10% | 7.25% | 7.00% | 6.20% | +0.40% |
| Post Office RD | 6.70% | 6.70% | 6.70% | 6.70% | N/A |
| Small Finance* | 9.00% | 8.75% | 8.50% | 8.00% | +0.50% |
*Rates as of Jan 2026. *Small Finance Banks include AU, Jana, ESAF, Equitas, Ujjivan - higher rates with DICGC ₹5L cover. RD rates may differ slightly from FD rates at the same bank.
Recurring Deposit (RD) - Complete Guide for Indian Savers
A Recurring Deposit (RD) is a savings product offered by Indian banks and post offices where you deposit a fixed amount every month for a predetermined tenure. At maturity, you receive the total deposited amount plus compounded interest. It's the monthly savings equivalent of a Fixed Deposit.
RDs are ideal for people who want to save regularly but don't have a lumpsum to invest. The guaranteed return and capital protection make them particularly suitable for short-term goals (1–3 years), building an emergency fund, or saving for a specific purchase.
RD vs FD - key differences
| Feature | Recurring Deposit (RD) | Fixed Deposit (FD) |
|---|---|---|
| Investment pattern | Fixed amount every month | One-time lumpsum |
| Minimum amount | ₹100/month (most banks) | ₹1,000 (most banks) |
| Tenure | 6 months to 10 years | 7 days to 10 years |
| Interest rate | Slightly lower than FD | Slightly higher than RD |
| Interest calculation | Quarterly compounding on each deposit | Quarterly compounding on lumpsum |
| Maturity value | Lower than FD (same rate, same total) | Higher — earlier money compounds longer |
| Premature withdrawal | Penalty + lower rate on all deposits | Penalty on full amount |
| Loan facility | Up to 80–90% of deposited amount | Up to 80–90% of deposit |
| Best for | Monthly savers, no lumpsum available | Those with lumpsum to invest |
Is RD interest taxable?
Yes. RD interest is fully taxable as "Income from other sources" at your applicable income tax slab rate - exactly like FD interest. Banks deduct TDS at 10% (with PAN) when the total interest across all deposits at that bank exceeds ₹40,000 per financial year (₹50,000 for senior citizens).
Tax tip
If your total income (including RD interest) is below the taxable limit, submit Form 15G (under 60) or Form 15H (senior citizens) to your bank at the start of every financial year to avoid TDS deduction entirely. You must still declare the interest in your ITR.
Frequently asked questions
Can I withdraw my RD before maturity?▼
Yes, most banks allow premature RD withdrawal with a penalty. The typical penalty is a reduction in interest rate — you receive the rate applicable for the period the RD was actually held, minus a penalty of 1–2%. For example, if you booked a 3-year RD at 7% and close it after 18 months, the bank pays the 18-month rate (say 6.5%) minus the 1% penalty = 5.5%. Check your specific bank's terms before assuming a penalty rate.
What happens if I miss an RD instalment?▼
Missing an RD instalment results in a penalty (typically ₹1.50–₹2 per ₹100 per month of default, depending on the bank). If you miss instalments repeatedly (usually 3–4 consecutive months), the bank may close the RD and credit your account at a reduced rate. To avoid this, set up a standing instruction or auto-debit from your savings account on the RD due date.
Is post office RD better than bank RD?▼
Post Office RD offers 6.7% interest (Q1 FY25), guaranteed by the Government of India — making it completely risk-free even beyond the DICGC limit. This compares favourably with PSU banks but is lower than small finance banks. The main advantages of Post Office RD: sovereign backing (no credit risk), available in rural and semi-urban areas where small finance banks may not operate, and easy nomination. However, online management is less convenient than bank RDs.
What is a flexi RD?▼
A Flexi RD (offered by banks like SBI under 'Flexi Deposit' or similar names) allows you to deposit more than the fixed minimum amount in any given month without creating a new RD. The excess amount earns FD-level interest. This is useful when you have a variable income month to month — you can deposit the minimum in lean months and more in good months, maximising interest on surplus funds without the constraints of a fixed instalment.
How does RD differ from SIP in terms of risk and return?▼
RD and SIP are fundamentally different instruments. RD is a guaranteed, capital-protected savings product with predictable returns (currently 6–9% p.a.). SIP is an equity mutual fund investment with market-linked, non-guaranteed returns historically averaging 12–15% over 7+ years, but with potential for negative years. For goals under 3 years: RD is better due to capital protection. For goals above 5 years: SIP is better due to significantly higher return potential. Both are systematic monthly savings tools — the difference is risk and return.