Total Invested Amount
₹ 1,80,000
Total Interest Earned
₹ 19,258
Tenure Applied
3.0 Years (36 Months)
Total Maturity Value
₹ 1,99,258
About the Recurring Deposit (RD) Calculator
Our free Recurring Deposit (RD) Calculator helps savers determine the maturity value and cumulative compound interest earned on regular monthly deposits made into a bank or post office recurring deposit account.
How Recurring Deposit Interest Is Calculated
In India, banks and financial institutions typically compound interest on Recurring Deposits on a quarterly basis. The standard compound formula used for RD maturity is:
$$A = P \times \left(1 + \frac{r}{4}\right)^{\frac{4n}{12}}$$
Where each monthly deposit accrues interest for its remaining duration in the scheme.
How to Use the Calculator
Simply enter your savings parameters or adjust the range slider:
- Monthly Deposit Amount: The fixed sum you save and deposit every month.
- Interest Rate: The annual percentage rate offered by the institution.
- Deposit Tenure: Use the toggle to switch between Years and Months flexibly.
Click the Calculate Returns button to instantly view your principal investment, interest earned, applied tenure, and total maturity value.
Frequently Asked Questions (FAQs)
Is interest earned on Recurring Deposits taxable?
Yes, interest earned on an RD is fully taxable according to your income tax slab. Banks also deduct Tax Deducted at Source (TDS) if the interest exceeds ₹40,000 (or ₹50,000 for senior citizens) in a financial year.
What is the minimum and maximum tenure for an RD?
The minimum tenure for a Recurring Deposit is typically 6 months, while the maximum tenure can extend up to 10 years depending on the bank's guidelines.
Can I miss a monthly RD installment without penalty?
Missing a monthly installment or delaying payment usually attracts a small nominal penalty fee levied by the bank, and consistent defaults may lead to account closure.
