RD Calculator

Recurring Deposit Calculator

Calculate your recurring deposit maturity amount and interest earnings with quarterly compounding.

RD Details

₹
₹500₹50,000
%
3%12%
Years
1 Years10 Years

RD Returns

Maturity Amount
₹3,54,954
Total Deposit
₹3,00,000
Interest Earned
₹54,954

Deposit Breakdown

15%
Interest
Deposit
Interest
Total Deposit₹3,00,000
0.0%
Interest Earned₹54,954.1
0.0%
Effective Rate
18.32%
Monthly Savings
₹5,000

What is a Recurring Deposit (RD)?

Recurring deposits (RDs) are an investment instrument almost similar to fixed deposits. However, you have to make fixed monthly deposits in RDs, unlike a lump sum amount in FDs. RDs create a habit of regular investment among earning individuals. These also instil discipline when it comes to savings.

Recurring deposits are offered by the majority of banks and financial institutions. RD returns calculation can be quite complicated for an average investor to figure out accurately every time. This is where an RD calculator can prove to be immensely beneficial.

The interest is compounded quarterly, and there are several variables involved, which makes the calculations multipart. An RD deposit calculator eliminates the hassle of computing its returns manually and enables an investor to know the exact amount their deposits will accrue after the relevant period.

How can an RD calculator help you?

A recurring deposit, as the name suggests, is a continuing investment. The returns on these deposits can be challenging to track for investors. The interest is compounded quarterly, and there are several variables involved, which makes the calculations multipart.

An RD deposit calculator eliminates the hassle of computing its returns manually and enables an investor to know the exact amount their deposits will accrue after the relevant period.

Note: The only consideration that the investor has to do manually is the TDS deduction. As per new RBI norms, RDs are also liable for TDS deduction; however, there is no uniformity in its implementation across financial institutions, which is why RD calculators don't take it into account.

Advantages of RD calculators include:

  • Plan future finances with greater clarity by providing exact maturity amounts
  • Convenient to use and saves a lot of time for investors
  • Always accurate with no chance of calculation mistakes
  • Free to use as many times as needed with different variables

Formula to determine RD maturity

There are three variables that go into the calculation of the RD maturity amount. An RD account calculator assigns these variables to a standard formula to arrive at the exact maturity amount.

A = P × (1 + R/N)^(Nt)
A = Maturity amount
P = Monthly deposit amount
R = Annual interest rate
N = Number of quarters (4)
t = Time period in years

Example Calculation

For example, an individual starts an RD account for an investment of ₹5,000 per month for a tenure of 1 year, i.e. 4 quarters. The interest accrued on this account is 8%.

The final maturity amount is calculated with the following formula:

A = P × (1 + R/N)^(Nt)

= 5000 × (1 + 0.08/4)^(4 × 1) = ₹62,730.85

Result: The maturity value for the depositor on the investment in RD is ₹62,730.85

Solving this equation manually is no mean task. A recurring deposit calculator, on the other hand, will provide you with the exact number in mere seconds.

How to use our RD calculator online?

Our RD calculator is straightforward to use and does not require any subject expertise. Here is a step-by-step guide for using this calculator:

  1. 1Input the monthly amount you would be putting in the recurring deposit
  2. 2Enter the number of years and the expected rate of return
  3. 3The total value of the investment after the tenure will be expressed within seconds

Advantages of using RD maturity calculator

Using our online RD calculator comes with its fair share of advantages. Depositors can use this calculator and avail the following benefits:

  • It is a time-saving instrument. It performs the calculations in seconds, and the entire procedure takes no more than 1-2 minutes
  • It is always accurate. There is no chance of any mistakes or ambiguity if you input every variable correctly
  • This is free to use as many times as a depositor wishes. You can input one or more of the variables in as many variations you want

Investment Comparison

Recurring deposit is considered a stable financial investment with potentially high returns. You may compare the performances of several other investment schemes for the same amount using online calculators available and make a decision accordingly.

  • • Compare with Fixed Deposits
  • • Compare with SIP investments
  • • Compare with other savings schemes
  • • Risk vs return analysis

RD Calculator FAQs

Common questions about recurring deposits and RD calculations

RD is a savings scheme where you deposit a fixed amount monthly for a predetermined period. It offers guaranteed returns and is ideal for disciplined savings with lower risk compared to market investments.
RD requires monthly deposits throughout the tenure, while FD is a one-time lump sum deposit. RD helps in regular savings habit formation, while FD is suitable for parking surplus funds.
Yes, interest earned on RD is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
Yes, TDS is applicable on RD interest as per new RBI norms. However, there is no uniformity in its implementation across financial institutions. TDS is deducted if interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
The minimum amount to start an RD account varies by bank, but typically ranges from ₹100 to ₹500 per month. Some banks may have higher minimum amounts. Check with your specific bank for their requirements.
Yes, you can break your RD prematurely, but this usually comes with penalties. Most banks charge a penalty of 1-2% on the interest rate or forfeit some interest. The exact terms vary by bank and the time of premature withdrawal.
RD tenure typically ranges from 6 months to 10 years, with most banks offering 1, 2, 3, 5, and 10-year options. Some banks may offer shorter or longer tenures. The minimum tenure is usually 6 months, and maximum can go up to 10 years.
RD interest is calculated using the formula: A = P × (1 + R/N)^(Nt), where A is maturity amount, P is monthly deposit, R is annual interest rate, N is number of quarters (4), and t is time in years. Interest is compounded quarterly.
Generally, you cannot increase the RD amount during the tenure as it's a fixed monthly deposit scheme. However, some banks may allow top-up deposits or additional deposits. Check with your bank for specific policies.
Missing an RD payment can result in penalties or account closure. Most banks allow a grace period of 1-2 months, but missing payments beyond this period may lead to account closure or penalty charges. Check your bank's specific terms.
Yes, you can have multiple RD accounts with the same or different banks. This allows you to save for different goals simultaneously. Each account will have its own terms, interest rates, and maturity dates.
There is no maximum limit for RD deposits, but banks may have their own policies. You can deposit any amount above the minimum requirement. However, very large amounts may require additional documentation or have different terms.
Yes, most banks offer loans against RD accounts. You can typically get a loan of 80-90% of the RD balance. The interest rate on such loans is usually 1-2% above the RD interest rate.
RD is a bank product with guaranteed returns and fixed interest rates, while SIP is a mutual fund investment with market-linked returns. RD offers capital protection but lower returns, while SIP offers higher potential returns but with market risk.
Yes, most banks now allow you to open RD accounts online through their internet banking or mobile banking apps. You can set up auto-debit from your savings account for monthly deposits.
You typically need identity proof (Aadhaar, PAN, Voter ID), address proof, and a passport-size photograph. Some banks may require additional documents. The exact requirements vary by bank.
Generally, you cannot change the deposit date once the RD account is opened. The deposit date is fixed at the time of account opening. However, some banks may allow changes under special circumstances.
RD interest rates vary by bank and tenure. Generally, they range from 5.5% to 7.5% per annum. Senior citizens usually get 0.25-0.50% higher rates. Rates are subject to change based on RBI policies and bank decisions.
No, partial withdrawals are not allowed from RD accounts. You can either continue the RD until maturity or close it completely. Some banks may allow partial closure after a certain period, but this varies by bank.
RD offers higher interest rates (5.5-7.5%) compared to savings accounts (2.5-4%), but requires regular monthly deposits and has a fixed tenure. Savings accounts offer liquidity but lower returns. Choose based on your financial goals and liquidity needs.