Recurring Deposit (RD) Calculator
Calculate returns on monthly recurring deposits with compound interest
RD Investment Results
Total Investment
₹300,000
Interest Earned
₹1,875
Maturity Amount
₹301,875
Effective Annual Return
0.12%
Wealth Multiplier
1.01x
Investment Breakdown
Year-wise Growth
| Year | Deposits | Interest | Total |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,437 | ₹62,437 |
| 2 | ₹60,000 | ₹9,375 | ₹69,375 |
| 3 | ₹60,000 | ₹20,813 | ₹80,813 |
| 4 | ₹60,000 | ₹36,750 | ₹96,750 |
| 5 | ₹60,000 | ₹57,187 | ₹117,187 |
💡 RD Investment Tips
- • Start early to benefit from compound interest
- • Compare rates across different banks
- • Consider auto-debit for convenience
- • Check for premature withdrawal penalties
- • Look for senior citizen benefits (higher rates)
Understanding Recurring Deposits (RD)
What is a Recurring Deposit?
A Recurring Deposit (RD) is a savings scheme offered by banks and financial institutions where you deposit a fixed amount every month for a predetermined period. Unlike Fixed Deposits where you invest a lump sum, RDs allow you to save small amounts regularly and earn interest on your accumulated savings.
RDs are perfect for individuals who want to build a corpus through regular savings but don't have a large amount to invest upfront. They offer guaranteed returns and are ideal for achieving short to medium-term financial goals like buying a vehicle, home renovation, or creating an emergency fund.
RD vs Other Savings Options
✅ RD Advantages
- • Regular savings habit
- • Guaranteed returns
- • Low minimum investment
- • Flexible deposit amounts
- • No market risk
📈 Other Options
- • Higher returns (mutual funds)
- • Tax efficiency (ELSS)
- • Liquidity (savings account)
- • Inflation protection (gold)
- • Market-linked returns
How RD Calculator Works
Our RD calculator uses the compound interest formula for recurring deposits:
Formula: Maturity Amount = P × [(1 + r)^n - 1] / r
Where: P = Monthly Deposit, r = Monthly Interest Rate, n = Total Number of Months
The calculator considers your monthly deposit amount, interest rate, tenure, and compounding frequency to show you the total amount deposited, interest earned, and final maturity amount.
Key Features of RD
💰 Minimum Investment
Start with as little as ₹100 per month. Most banks allow deposits in multiples of ₹10.
⏰ Flexible Tenure
Choose tenure from 6 months to 10 years. Longer tenures offer higher interest rates.
📈 Interest Rates
Rates vary from 5-8% p.a. depending on bank, tenure, and deposit amount.
RD Investment Strategy
🎯 Goal-Based Planning
Calculate the amount needed for your goal and divide by the number of months to determine your monthly RD amount. This ensures you reach your target on time.
📊 Multiple RD Strategy
Open multiple RDs for different goals (emergency fund, vacation, down payment). This helps track progress for each goal separately.
⏰ Auto-Debit Setup
Set up auto-debit from your savings account to ensure you never miss a deposit. This builds a disciplined savings habit.
RD vs SIP Investment
💰 RD Advantages
- • Guaranteed returns
- • No market risk
- • Predictable maturity amount
- • Lower minimum investment
- • Suitable for short-term goals
📈 SIP Advantages
- • Higher potential returns
- • Tax efficiency
- • Better for long-term goals
- • Inflation protection
- • Wealth creation potential
Tax Implications of RD
Interest Income
RD interest is fully taxable as per your income tax slab
TDS Deduction
10% TDS if interest exceeds ₹40,000 (₹50,000 for senior citizens)
No Tax Benefits
RD deposits don't qualify for any tax deductions
RD Investment Tips
- •Start early: The earlier you start, the more time for compounding
- •Increase deposits: Consider increasing RD amount with salary hikes
- •Compare rates: Check RD rates across different banks
- •Auto-renewal: Set up auto-renewal to continue saving
- •Emergency access: Check premature withdrawal terms before investing