A Recurring Deposit lets you save a fixed amount every month at a guaranteed bank interest rate. This calculator uses the standard quarterly-compounding formula used by Indian banks and post offices.
About the RD Calculator
RDs combine the discipline of regular saving with the safety of a bank deposit. Because deposits are staggered, the effective yield is slightly lower than an FD of the same tenure and rate, since later instalments earn interest for shorter periods.
Formula used:
Frequently Asked Questions
RD or SIP — which should I choose?
RDs guarantee returns and suit short horizons (1–5 years). SIPs in equity funds carry market risk but have historically beaten RDs significantly over 7+ year horizons.
Is RD interest taxable?
Yes, fully taxable at your slab rate. TDS applies above the annual interest threshold (same as FD).