RD Calculator - Recurring Deposit Maturity Calculator
Calculate your Recurring Deposit maturity amount with monthly deposits. Compare RD rates across banks and plan your savings effectively.
RD Calculator
2.0 years (24 months)
Investment Summary
What is Recurring Deposit (RD)?
A Recurring Deposit (RD) is a popular savings scheme offered by banks and post offices where you deposit a fixed amount every month for a predetermined period. It combines the benefits of regular savings with attractive interest rates.
Key Features of RD:
- Fixed Monthly Deposit: Same amount deposited every month
- Quarterly Compounding: Interest compounded every 3 months
- Flexible Tenure: 6 months to 10 years
- Guaranteed Returns: Fixed interest rate throughout tenure
- Loan Facility: Up to 90% of deposit value
RD vs FD vs SIP Comparison
| Feature | RD | FD | SIP |
|---|---|---|---|
| Investment Type | Monthly | Lump sum | Monthly |
| Returns | Fixed (6-7%) | Fixed (6-7%) | Variable (10-15%) |
| Risk | Low | Low | Medium-High |
| Liquidity | Low (penalty) | Low (penalty) | High |
| Best For | Safe monthly savings | Lump sum parking | Wealth creation |
RD Interest Rates 2026 — Bank-wise Comparison Across Tenures
RD rates vary by tenure — most banks offer their best rate in the 1–3 year range. Below are the current rates across major Indian banks for the four most-asked tenures. Senior citizens get an additional 0.25%–0.50% on every row. Rates updated April 2026; always confirm with the bank before opening.
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Type |
|---|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.75% | 6.50% | Public |
| HDFC Bank | 7.00% | 7.00% | 7.00% | 7.00% | Private |
| ICICI Bank | 6.90% | 7.00% | 7.00% | 7.00% | Private |
| Axis Bank | 6.70% | 7.10% | 7.00% | 7.00% | Private |
| Bank of Baroda | 6.85% | 7.15% | 7.05% | 6.50% | Public |
| PNB | 6.80% | 7.00% | 6.50% | 6.50% | Public |
| Kotak Mahindra | 6.20% | 7.10% | 7.10% | 6.20% | Private |
| AU Small Finance | 7.25% | 7.50% | 7.50% | 7.25% | Small Finance |
| Ujjivan SFB | 7.30% | 7.60% | 7.40% | 7.30% | Small Finance |
| Post Office RD | — | — | — | 6.70% | Govt |
Post Office RD is fixed at 5-year tenure with quarterly compounding. Small Finance Banks (highlighted in green) offer 50–80 basis points more but check DICGC insurance coverage (₹5 lakh per depositor per bank). Spread large RDs across 2–3 banks to stay within the DICGC limit.
Real RD Returns After Tax & Inflation
Most RD calculators show the gross maturity amount. Here's what you actually take home after TDS, your income tax slab, and inflation — the numbers that decide whether RD is making you money or quietly losing it.
| Your Tax Slab | RD Rate 7% | After Tax | After Inflation (5%) | Real Return |
|---|---|---|---|---|
| No Tax (income < ₹2.5L) | 7.00% | 7.00% | 5.00% | +2.00% |
| 5% Slab (₹2.5L–₹5L) | 7.00% | 6.65% | 5.00% | +1.65% |
| 20% Slab (₹5L–₹10L) | 7.00% | 5.60% | 5.00% | +0.60% |
| 30% Slab (income > ₹10L) | 7.00% | 4.90% | 5.00% | −0.10% |
The TDS trap most RD savers don't know about: TDS is deducted at 10% (with PAN) or 20% (without PAN) when annual RD interest exceeds ₹40,000 (₹50,000 for senior citizens). Critically — this is across all RDs in the same bank, not per RD. Splitting one large RD into 4 smaller ones at the same bank does not avoid TDS. The fix: spread RDs across 2–3 different banks so each bank's interest stays under the threshold. You still owe tax at filing time, but no TDS lock-in until then.
If you're in the 30% tax bracket and saving for 3+ years, RD is the wrong product. A debt mutual fund at the same ~7% pre-tax beats RD on take-home by 90–130 basis points after the 20%+ LTCG indexation advantage on holdings > 3 years (taxed at 20% with indexation vs 30% slab on RD interest). For 1–2 year horizons, RD is fine since debt funds don't get the LTCG benefit yet. Compare with SIP if your horizon is 5+ years — equity wins by ~3–5% real return at the cost of volatility.
Two RD Strategies That Beat "Just Open One RD"
A single RD is fine for one specific goal. But two structural tweaks dramatically improve either your liquidity or your tax position — without changing total savings.
Strategy 1: The 12-Month RD Ladder — Build a "Salary RD"
Instead of one ₹10,000/month RD for 12 months, open 12 separate RDs staggered one month apart. After month 12, one RD matures every month — turning your savings into a monthly cash flow that funds whatever it's earmarked for.
Why it wins
Same total deposit, same total interest. But after year 1, you have monthly liquidity instead of a single lump-sum lock-in — break one RD without disturbing the others.
Best for
Emergency fund builders, freelancers wanting predictable cash flow, anyone who needs occasional access without paying the 1% pre-closure penalty on a full RD.
Catch
More paperwork upfront — 12 RD applications, 12 standing instructions. Most modern banking apps let you open RDs in under 60 seconds though.
Strategy 2: Goal-Based Parallel RDs — Don't Mix Your Goals
Running one ₹15,000/month RD for "general savings" is a mental-accounting failure waiting to happen. Split it into separate named RDs per goal, each sized to its actual target — that way you can't accidentally raid the school-fee RD to fund a holiday.
| Goal | Tenure | Monthly | Target Maturity | Why separate |
|---|---|---|---|---|
| Annual insurance premium | 12 mo | ₹4,200 | ₹52,000 | Predictable, must be ready by renewal date |
| Annual vacation | 12 mo | ₹6,000 | ₹74,500 | Discretionary — fund only if salary allows |
| School fee buffer | 24 mo | ₹3,000 | ₹77,500 | Critical — never raid this for anything else |
| Car downpayment | 36 mo | ₹5,000 | ₹2.02 L | Long-term — could swap to debt fund for tax efficiency |
| Total monthly outflow | — | ₹18,200 | ₹4.05 L (3y) | Same money, 4× the mental clarity |
Behavioural finance reality: people who mentally tag savings to specific goals save ~20% more on average and are 40% less likely to raid the fund for impulse purchases (multiple studies; the simplest "envelope budgeting" mechanism). Banks don't market goal-based RDs because it makes you save smarter, not bigger — but you don't need them to: just name each RD app-side as "INSURANCE-2027", "VACATION-2027", "SCHOOL-2028" and treat them as off-limits to each other.
Frequently Asked Questions
What is RD (Recurring Deposit)?
RD (Recurring Deposit) is a savings scheme where you deposit a fixed amount every month for a predetermined tenure. It offers higher interest rates than savings accounts and helps build a savings habit. Interest is compounded quarterly in most banks.
How is RD interest calculated?
RD interest is calculated using compound interest formula with quarterly compounding. Each monthly deposit earns interest from the date of deposit until maturity. The maturity amount = Total deposits + Compound interest earned on each deposit.
What is the minimum and maximum RD tenure?
Most banks offer RD with minimum tenure of 6 months and maximum of 10 years. Post Office RD has a fixed 5-year tenure. Some banks offer flexible tenures from 6 months to 120 months (10 years).
Is RD interest taxable?
Yes, RD interest is taxable as "Income from Other Sources" at your applicable tax slab rate. TDS of 10% is deducted if total interest exceeds Rs 40,000/year (Rs 50,000 for senior citizens). You can claim TDS refund while filing ITR.
Can I withdraw RD before maturity?
Yes, premature withdrawal is allowed but attracts a penalty of 0.5% to 1% on the applicable interest rate. Some banks may not allow premature withdrawal before minimum lock-in period. Partial withdrawal is generally not allowed.
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