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Use the fields in the tool above and keep units and formats consistent.
Find the maturity value of your recurring deposit with quarterly compounding. See total interest on monthly savings and compare RD with SIP and FD.
Maturity value
โน26,18,327.41
Total deposits
โน20,00,000
Interest earned
โน6,18,327.41
Recurring deposit results are estimates for planning and should be checked against current official rules or professional advice where applicable.
Not everyone has a lump sum ready to lock away. A recurring deposit lets you save a fixed amount every month at a fixed rate. It is popular for short goals like a holiday, a gadget or a wedding fund.
The tricky part is the maturity value. Each instalment earns interest for a different length of time, so you cannot simply multiply. This RD calculator does that work. Enter the monthly deposit, interest rate and tenure in months to see the maturity amount and interest earned.
Banks treat every monthly instalment as a small FD. Each one compounds quarterly from the month it is paid until maturity. The first instalment earns the most, and the last earns the least.
M = ฮฃ R ร (1 + r รท 4)^(4 ร t)
R is the monthly deposit and r is the annual rate in decimal. The value t is the time each instalment stays invested, in years.
Your bank's figure may differ by a few rupees. Some banks round each quarter or use a slightly different day count. Ask for the maturity value in writing when you open the account.
| Feature | Recurring deposit | Mutual fund SIP | Fixed deposit |
|---|---|---|---|
| Contribution | Fixed monthly | Fixed monthly | One-time lump sum |
| Return | Fixed, known upfront | Market-linked | Fixed, known upfront |
| Risk | Very low | Moderate to high | Very low |
| Best for | Goals under 3 years | Goals over 5 years | Parking existing savings |
| Tax on returns | Slab rate | Capital gains rules | Slab rate |
An RD suits goals where you cannot afford a loss. For longer horizons, an equity SIP has historically beaten RD returns, with more ups and downs along the way. Many families run both: an RD for next year's school fees and a SIP for retirement.
Set up auto-debit on salary day to avoid missed payments. The ToolsMate RD calculator lets you test a few monthly amounts against your goal. Interest rates move with the market, so confirm your bank's current rate before you start.
Use the fields in the tool above and keep units and formats consistent.
Review the result shown in the output area.
Confirm that the result matches your situation before using it for a decision.
Maturity is estimated from recurring monthly deposits and assumed compounding.This describes the core logic used by the tool. Check any assumptions that may affect your result.
Use accurate inputs and keep units consistent.
Review the assumptions before using the result for a decision.
Compare important results with an independent or official source.
Each monthly instalment earns compound interest, usually quarterly, from the date it is paid until maturity. The bank adds up the maturity value of every instalment. That is why early deposits earn more than later ones in the same RD.
At 7% with quarterly compounding, Rs 5,000 a month for 12 months grows to about Rs 62,311. You deposit Rs 60,000 and earn around Rs 2,311 in interest. Your bank's exact figure may vary by a few rupees.
Most banks charge a small penalty for each overdue instalment, often linked to the deposit amount. Missing several instalments in a row may lead the bank to close the RD. You would then get the balance with reduced interest.
Yes, RD interest is added to your total income and taxed at your slab rate. Banks deduct TDS if combined interest from FDs and RDs crosses the yearly threshold. You can submit Form 15G or 15H if your income is non-taxable.
For goals within one to three years, an RD is usually safer because the return is fixed. A SIP in equity funds can fall in value over short periods. For goals five or more years away, SIPs have historically delivered higher growth.
Yes, most banks allow premature closure of an RD, usually with a penalty on the interest rate. Partial withdrawals are generally not allowed. Post Office RDs permit premature closure only after three years, with interest at the savings rate.
A Post Office RD has a fixed five-year tenure and a government-set rate reviewed every quarter. Bank RDs offer flexible tenures and rates that vary by bank. Both compound interest quarterly, and interest is taxable in both.
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