Recurring Deposit Calculator
A Recurring Deposit calculator helps estimate the maturity amount and interest earned when you deposit a fixed amount every month. Use this tool to plan disciplined savings for short- to medium-term goals.
Table of Contents
How Recurring Deposit Calculator works
You input:
- Monthly deposit: fixed amount you will deposit each month.
- Interest rate: annual rate (in %).
- Tenure: duration (months or years).
- Compounding frequency: monthly/quarterly/annual.
The calculator simulates deposits month-by-month and applies interest at each compounding period. It then returns the maturity amount, total principal and interest earned.
Why compounding option matters
Indian banks commonly compound RD interest quarterly — using the quarterly option will better approximate official bank calculations. Changes in RBI policy and the repo rate influence deposit rates offered by banks.
Recurring deposit rates in India (context — Sept 2025)
RD interest rates in India vary by bank and tenure. As of September 2025, typical RD rates range roughly from 3.00% to 8.5%+ per annum depending on bank and tenure; senior citizens often get an additional 0.25%–0.50% on top of standard rates. For bank-specific tables (examples include SBI, Bandhan, Yes Bank, Axis, HDFC), refer to bank rate pages or comparison portals.
Key factors that influence Recurring Deposit rates
- RBI policy (repo rate): a primary driver of deposit and lending rates.
- Economic conditions: inflation and credit demand.
- Tenure: longer tenures may offer higher rates.
- Bank-specific liquidity & competition: each bank sets its own rates.
Benefits of recurring deposits
- Guaranteed returns — low risk compared to market-linked instruments.
- Disciplined saving habit via fixed monthly deposits.
- Flexible tenures (often 6 months to 10 years) and low minimum deposits.
- Loan against RD is often available (usually up to 90–95% of balance).
Taxation & TDS
Interest earned on RD is taxable as per your income tax slab. From the Union Budget effective April 1, 2025, the TDS exemption threshold for interest income was revised to ₹50,000 for other individuals and ₹1,00,000 for senior citizens (for the financial year 2025–26) — banks apply TDS rules under section 194A. If total interest in a financial year exceeds the applicable limit, TDS may be deducted unless you furnish Form 15G/15H or claim exemption as per law.
Frequently Asked Questions (FAQ)
1. What is a Recurring Deposit (RD)?
An RD is a financial product where you deposit a fixed amount regularly, usually monthly, for a fixed tenure. At maturity you receive the principal plus interest earned. RDs are offered by banks and post offices.
2. How is Recurring Deposit interest calculated?
Interest can be compounded quarterly (common in India) or at other frequencies as allowed by the bank. This calculator simulates compounding at monthly, quarterly, or annual intervals to estimate maturity. For exact bank calculations, use the bank’s official RD calculator because some banks compute interest on daily balances and credit it quarterly.
3. Are Recurring Deposit returns guaranteed?
Yes — the interest rate agreed at the time of deposit is guaranteed by the bank for the tenure, unlike market-linked investments. Deposits up to ₹5 lakh per depositor per bank are insured by DICGC (subject to limits and conditions).
4. Can I close Recurring Deposit before maturity?
Most banks allow premature closure with a penalty that reduces the effective interest rate. Policies vary by bank — check terms before opening the RD.
5. Does senior citizen get extra interest on RD?
Many banks offer higher RD interest rates for senior citizens (commonly an extra 0.25%–0.50%) — see bank-specific rates.
Disclaimer
This calculator provides approximate results for educational and planning purposes only. Banks may compute interest differently (for example, on a daily basis and credit quarterly), and bank-specific rules, fees, penalties and TDS procedures will affect final amounts. We are not a bank or tax advisor — always verify rates, terms and tax details with your bank and a qualified tax professional before making financial decisions. For latest bank-specific RD rates and official calculators, refer to the bank’s website or RBI/official publications.