RD Calculator

Calculate RD maturity amount for SBI, Post Office, HDFC recurring deposits. Monthly deposit from Rs 100 to Rs 1L. Compare bank vs post office RD rates.

RD Calculator — Recurring Deposit Returns

Results update instantly

Deposit amount Rs 5K

Monthly deposit amount — minimum Rs 100 in most banks

Rs 100Rs 1L
Rs
Expected annual return 6.5%

SBI RD: 6.5-7.0% | Post Office RD: 6.7% | Senior citizens: +0.5%

4%9%
% p.a.
Time period 3 years
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Estimates based on constant rate assumption. Actual returns may vary.

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ThriftRupee Insight

RD is essentially a SIP into an FD. Rs 5,000/month RD at 6.7% for 5 years = Rs 3L invested, Rs 3.55L maturity. The same Rs 5,000/month SIP in a Nifty index fund at 12% CAGR = Rs 4.12L maturity. RD is safer; SIP gives 16% more for the same investment.

What is an RD Calculator?

An RD calculator estimates the maturity amount of a Recurring Deposit — a savings instrument where you deposit a fixed amount every month and earn interest over a set tenure. RD combines the discipline of monthly saving with the guaranteed returns of fixed deposits.

RD maturity formula

Maturity = P x n + P x n(n+1)/2 x r/1200

P = Monthly deposit   n = Total months   r = Annual interest rate

Simplified: this is equivalent to investing each month's deposit as a separate FD for the remaining tenure.

Bank RD vs Post Office RD

Post Office RD (National Savings Recurring Deposit) offers 6.7% with government backing — zero default risk. Bank RDs from SBI, HDFC, ICICI offer 6.5-7.5% depending on tenure and category. Small finance banks offer 8-9% but carry slightly higher risk (though insured up to Rs 5L by DICGC).

RD vs SIP — honest comparison

Both involve monthly investments but the similarity ends there. RD is capital-protected, guaranteed, but generates taxable returns at 6.5-7.5%. SIP in equity mutual funds has historically returned 12-15% over 10+ year periods but is market-linked and not guaranteed. For short-term goals (1-3 years), RD is better. For long-term goals (5+ years), SIP typically outperforms significantly.

ThriftRupee tips for RD investors

Tip 1: Use RD for specific short-term goals. Planning a foreign trip in 18 months? Saving for a gadget in 12 months? An RD lets you auto-save monthly toward the exact target date and amount.

Tip 2: Choose senior citizen RD for parents. Senior citizens get an extra 0.5% on RDs at most banks. A Rs 10,000/month RD for a retired parent at 7.5% for 5 years creates Rs 7.3L maturity.

Tip 3: Post Office RD for absolute safety. If you want the guarantee of the Indian government (beyond DICGC Rs 5L bank insurance), Post Office RD at 6.7% is the safest monthly savings option available.

Frequently asked questions

What is the difference between RD and FD?
FD requires one lump sum investment; RD lets you invest a fixed amount monthly. RD is ideal for building a corpus from monthly savings. Interest rates are similar — RD rates are typically 0.25% lower than FD for the same tenure at the same bank.
What is Post Office RD interest rate?
Post Office RD currently offers 6.7% per annum (compounded quarterly). It has a 5-year tenure and a minimum deposit of Rs 100/month. Post Office RD is backed by the Government of India — zero default risk.
Is RD interest taxable?
Yes, RD interest is fully taxable as Income from Other Sources at your slab rate. TDS applies if annual interest exceeds Rs 40,000. Unlike PPF, there is no tax exemption on RD interest.
Can I withdraw RD before maturity?
Premature withdrawal is allowed after 3 months at most banks. A penalty of 1-2% is deducted from the applicable rate. Post Office RD allows premature closure after 3 years at savings account rate.