RD Calculator
Calculate how much your monthly Recurring Deposit contributions will grow to at maturity.
Maturity Amount
after 12 months
How RD Interest Compounds
Unlike an FD where your entire deposit earns interest from day one, an RD's interest builds up gradually since each monthly installment starts earning only from the date it's deposited. Banks typically compound RD interest quarterly, applying the rate to each installment for however many full quarters remain until maturity — which is why the effective return on an RD is slightly lower than the same nominal rate on an equivalent FD.
Frequently Asked Questions
How is RD interest calculated?
Each monthly installment in a Recurring Deposit earns interest only for the time it remains in the account, compounded quarterly (the convention most Indian banks use). Earlier installments earn interest for longer than later ones.
What's the difference between RD and FD?
An FD requires a single lumpsum deposit upfront, while an RD lets you build up savings with fixed monthly contributions. RD suits people without a large lumpsum on hand but who can commit to a regular monthly amount; FD suits those with savings already accumulated.
Is RD interest taxable?
Yes, RD interest is fully taxable at your income tax slab rate, just like FD interest. Banks deduct TDS if total interest across your deposits exceeds ₹40,000 in a year (₹50,000 for senior citizens).
Can I withdraw an RD before maturity?
Most banks allow premature withdrawal of an RD, but typically at a reduced interest rate and sometimes a penalty, similar to premature FD withdrawal rules.