Recurring Deposit Calculator - Calculate RD Returns with Monthly Investments

Our Recurring Deposit (RD) Calculator helps you calculate the maturity amount and interest earnings on your recurring deposits. Whether you're planning monthly savings or comparing different RD schemes, this calculator provides accurate results based on compound interest calculations.

How to Use the RD Calculator

1. Enter Monthly Deposit: Input the amount you want to deposit every month in the RD
2. Set Interest Rate: Enter the annual interest rate offered by your bank
3. Choose Time Period: Select the tenure of your RD in months or years
4. View Results: Get instant calculations of maturity amount, total investment, and interest earned

Key Features of Our RD Calculator

• Accurate Calculations: Uses compound interest formula for precise RD calculations
• Bank Rate Comparison: Compare RD rates across major Indian banks
• Visual Charts: Interactive charts showing growth and breakdown over time
• Maturity Date: Shows exact maturity date of your recurring deposit
• Quick Presets: Pre-defined investment scenarios for quick calculations

Understanding Recurring Deposit Calculations

Recurring Deposits use compound interest calculation where each monthly deposit earns interest: Maturity Amount = Σ [P × (1 + r/12)^(n-i+1)] for i = 1 to n

Where:

• P = Monthly deposit amount
• r = Annual interest rate
• n = Total number of months
• i = Month number

Benefits of Recurring Deposits

• Disciplined Savings: Forces regular monthly savings habit
• Higher Returns: Better returns than regular savings accounts
• Flexible Tenure: Choose from 6 months to 10 years
• DICGC Insurance: Protected up to ₹5 lakh per depositor per bank
• Premature Withdrawal: Option to withdraw before maturity (with penalty)

Important RD Terms to Know

• Maturity Amount: Total amount you receive at the end of RD tenure
• Monthly Deposit: Fixed amount deposited every month
• Compound Interest: Interest calculated on principal plus accumulated interest
• Premature Withdrawal: Withdrawing RD before maturity (penalty applicable)
• Default: Missing monthly deposits (may affect returns)

Current RD Interest Rates in India (2024-25)

Major banks offer RD interest rates ranging from 6.5% to 7.5% per annum:

• SBI RD Rate: 6.5% per annum
• HDFC Bank RD Rate: 6.75% per annum
• ICICI Bank RD Rate: 6.75% per annum
• Axis Bank RD Rate: 7.0% per annum
• PNB RD Rate: 6.5% per annum
• Kotak Mahindra RD Rate: 7.0% per annum

Rates are subject to change. Please check with your bank for current rates.

Tax Implications of Recurring Deposits

• Interest earned on RDs is taxable as per your income tax slab
• Banks deduct TDS if interest exceeds ₹40,000 in a financial year
• Senior citizens get TDS exemption up to ₹50,000
• No tax benefits available under Section 80C for regular RDs

RD vs Other Investment Options

RD vs Fixed Deposit (FD)

• RD: Monthly investments, suitable for salary earners
• FD: Lump sum investment, better for those with surplus funds

RD vs SIP (Mutual Funds)

• RD: Guaranteed returns, lower risk, bank security
• SIP: Market-linked returns, higher risk, potential for better returns

RD vs PPF

• RD: No lock-in period, lower returns, no tax benefits
• PPF: 15-year lock-in, tax-free returns, Section 80C benefits

Tips for RD Investment

1. Compare Rates: Different banks offer different RD rates
2. Maintain Regularity: Ensure timely monthly deposits to avoid penalties
3. Consider Inflation: Ensure RD returns beat inflation over time
4. Emergency Fund: Don't invest all savings in RDs, maintain liquid funds
5. Tenure Selection: Choose tenure based on your financial goals

RD Calculator FAQs

What is the minimum amount for RD?

Most banks allow RD with a minimum monthly deposit of ₹100, though some banks may have higher minimums.

Can I increase my monthly RD amount?

No, the monthly deposit amount is fixed for the entire tenure. You need to open a new RD for different amounts.

What happens if I miss an RD installment?

Missing installments may attract penalty charges and can affect the overall returns. Some banks allow a grace period.

Can I withdraw RD before maturity?

Yes, but premature withdrawal usually attracts penalty charges and you may get reduced interest rates.

Is RD better than savings account?

Yes, RDs typically offer higher interest rates than savings accounts and encourage disciplined savings.

Start calculating your RD returns now and plan your monthly savings effectively!