🏦 Free Online Tool · All Banks · FY 2025-26
RD Calculator Online
Recurring Deposit — Maturity & Returns
Calculate your RD maturity amount, total interest, monthly deposits and year-wise projection — for all banks, post office and step-up RD plans. Includes TDS and senior citizen rates.
🏦 Bank Recurring Deposit Calculator
Monthly Deposit
₹100₹2L
Annual Interest Rate
2%12%
Tenure
6 Mos10 Yrs
Senior Citizen (extra 0.5%)
Deduct TDS (10% on interest)
Monthly Deposit₹5,000/mo
Total Deposited₹1,80,000
Total Interest Earned₹20,244
TDS Deducted₹0
Maturity Amount₹2,00,244
RD Maturity Amount
₹2.00L
after 3 years · ₹5,000/month
10%
Interest
Total Deposited₹1.80L
Interest Earned₹20,244
TDS Deducted₹0
Net Maturity₹2.00L
Rate Summary
Nominal rate7.00% p.a.
Effective rate (quarterly)7.19% p.a.
Returns on deposits11.2%
Post-TDS yield7.00% p.a.
📅 Month-wise RD Projection
| Period | Deposit (₹) | Cum. Deposited (₹) | Interest (₹) | Balance (₹) |
|---|
⚖️ RD vs FD vs SIP — Which is Better for Monthly Savings?
| Feature | RD | FD (Lump-sum) | SIP (Mutual Fund) |
|---|---|---|---|
| Investment Style | Monthly fixed amount | One-time lump sum | Monthly fixed amount |
| Returns | Fixed (6.5–7.5%) | Fixed (6.5–8%) | Market-linked (10–14% hist.) |
| Risk | Zero | Zero | Market risk |
| Tax on Returns | Taxable at slab rate | Taxable at slab rate | LTCG 12.5% / STCG 20% |
| TDS | 10% if interest > ₹40K/yr | 10% if interest > ₹40K/yr | No TDS (self-declare in ITR) |
| Liquidity | Penalty on early exit | Penalty on early exit | ✅ Redeem anytime (ELSS: 3yr) |
| Guaranteed Returns | ✅ Yes (bank-guaranteed) | ✅ Yes | ❌ No guarantee |
| DICGC Insurance | ✅ Up to ₹5L per bank | ✅ Up to ₹5L per bank | ❌ No insurance |
| Inflation-beating | Often below inflation | Often below inflation | ✅ Historically above inflation |
| Best For | Safe disciplined savings | Lump sum parking | Long-term wealth creation |
📐
RD Formula Explained
RD uses quarterly compounding on each monthly instalment. The standard RD maturity formula:
M = R × [(1+i)ⁿ – 1] ÷ [1 – (1+i)^(–1/3)]
M = Maturity Amount
R = Monthly instalment
i = Rate of interest / 4 / 100
n = Number of quarters
Each instalment earns interest from its deposit month till maturity.
M = Maturity Amount
R = Monthly instalment
i = Rate of interest / 4 / 100
n = Number of quarters
Each instalment earns interest from its deposit month till maturity.
💸
TDS on RD Interest
Interest from RD is taxable and banks deduct TDS under the same rules as FD:
TDS threshold: ₹40,000/yr per bank (₹50,000 for Sr. Citizens)
TDS rate: 10% (20% without PAN)
Avoid TDS: Submit Form 15G (under 60) or Form 15H (60+) if income is below taxable limit
Note: TDS is deducted on interest accrual basis, credited as TDS in your 26AS
TDS rate: 10% (20% without PAN)
Avoid TDS: Submit Form 15G (under 60) or Form 15H (60+) if income is below taxable limit
Note: TDS is deducted on interest accrual basis, credited as TDS in your 26AS
📮
Post Office RD Rules
Post Office RD (5-year term) is a sovereign-backed alternative to bank RDs:
Rate: 6.7% p.a. (FY 2025-26)
Tenure: Fixed 5 years (extendable by 5 more)
Min deposit: ₹100/month
No max limit
Loan: After 1 year (up to 50% of balance)
Premature close: After 3 years with 2% penalty on rate
Tax: Interest taxable; no TDS but must declare in ITR
Tenure: Fixed 5 years (extendable by 5 more)
Min deposit: ₹100/month
No max limit
Loan: After 1 year (up to 50% of balance)
Premature close: After 3 years with 2% penalty on rate
Tax: Interest taxable; no TDS but must declare in ITR
Frequently Asked Questions
A Recurring Deposit (RD) is a savings product where you deposit a fixed amount every month for a chosen tenure. At maturity, you receive the total deposits plus interest compounded quarterly. RDs are ideal for people who want to save regularly rather than investing a lump sum. They are available at banks, post offices and cooperative societies, and are completely safe with DICGC insurance up to ₹5 lakh per bank.
RD uses quarterly compounding. Each monthly instalment earns interest from its deposit date till maturity. The formula is: M = R × [(1+i)ⁿ – 1] ÷ [1 – (1+i)^(–1/3)] where i = interest rate/4/100 and n = number of quarters. The effective rate with quarterly compounding is slightly higher than the nominal rate — e.g., 7% nominal gives ~7.19% effective annually.
Yes — RD interest is fully taxable as "Income from Other Sources" at your income slab rate. Banks deduct TDS at 10% if total interest across all deposits in one bank exceeds ₹40,000/yr (₹50,000 for senior citizens). Submit Form 15G (if below 60) or Form 15H (if 60+) to avoid TDS if your income is below the taxable limit. Post Office RD does not deduct TDS but you must declare the interest in your ITR.
A Step-up RD allows you to increase your monthly deposit by a fixed amount each year — helping you grow savings in line with salary increments. For example, starting at ₹5,000/month and stepping up ₹500 each year means ₹5,000 in Year 1, ₹5,500 in Year 2, ₹6,000 in Year 3, etc. This leads to a significantly higher maturity corpus than a flat RD — while staying disciplined with regular deposits.
The Post Office Recurring Deposit rate for FY 2025-26 is 6.7% p.a. compounded quarterly. The tenure is fixed at 5 years. The account can be extended for another 5 years. Minimum deposit is ₹100/month with no upper limit. Post Office RD is backed by the sovereign government — making it risk-free. Unlike bank RDs, Post Office does not deduct TDS, but interest must be declared in your ITR.
Premature withdrawal of RD is allowed, usually after a minimum period (varies by bank — typically 3–6 months). A penalty of 0.5%–2% is deducted from the applicable rate. For Post Office RD: premature closure is allowed only after 3 years, with a 2% reduction in the RD rate. If you miss an instalment, a late fee (usually ₹1–2 per ₹100) is charged, and the RD may be discontinued after 4–6 missed instalments.
Each serves a different purpose: RD is best for disciplined monthly savers who want guaranteed returns without risk. FD is better when you have a lump sum to invest. SIP in mutual funds offers potentially higher returns (historically 10–14% vs 7% for RD) but with market risk. For short-term goals (1–5 years) with capital safety as priority, RD is a great choice. For long-term goals (5+ years), SIP generally outperforms RD significantly.
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Need to Declare RD Interest Correctly in Your ITR?
TAXAJ's CA team helps you declare RD and FD interest, claim TDS credit from Form 26AS, submit Form 15G/15H and minimise your tax liability on savings income.
