Recurring Deposit (RD) — Smart Financial Analysis
Calculate your RD maturity amount with quarterly compounding. Plan disciplined monthly savings with guaranteed returns. Popular across 50Cr+ Indian bank accounts.
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An RD is a savings scheme where you deposit a fixed amount monthly for a fixed tenure. Banks calculate interest on each monthly installment from its deposit date to maturity using quarterly compounding. Most banks offer 6 months to 10 years. RD: guaranteed returns (5-7%), capital protected, short-term.
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Why: An RD is a savings scheme where you deposit a fixed amount monthly for a fixed tenure. Interest is compounded quarterly (most Indian banks). It's popular for disciplined sa...
How: Enter Monthly Deposit (₹), Interest Rate (%), Tenure (months) to get instant results. Try the preset examples to see how different scenarios affect the outcome, then adjust to match your situation.
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📋 Quick Examples — Click to Load
📈 RD Balance Growth
Balance accumulation over tenure
📊 Deposits vs Interest by Year
Total deposits vs interest earned per year
🍩 Composition: Deposits vs Interest vs Tax
Breakdown of maturity components
📊 Maturity at Different Rates
Compare maturity across interest rates
For educational purposes only — not financial advice. Consult a qualified advisor before making decisions.
💡 Money Facts
Recurring Deposit (RD) analysis is used by millions of people worldwide to make better financial decisions.
— Industry Data
Financial literacy can increase household wealth by up to 25% over a lifetime.
— NBER Research
The average American makes 35,000 financial decisions per year—many can be optimized with calculators.
— Cornell University
Globally, only 33% of adults are financially literate, making tools like this essential.
— S&P Global
Recurring Deposits are one of India's most popular savings instruments, offering guaranteed returns with the discipline of monthly investing. With over 50 crore RD accounts across Indian banks, RDs serve as a cornerstone of middle-class savings. Current RD rates range from 5.5% to 7.5%, with senior citizens receiving an additional 0.25-0.50% premium.
Sources: Reserve Bank of India, State Bank of India, India Post, SEBI.
Key Takeaways
- • RD interest is compounded quarterly at most Indian banks
- • Each monthly installment earns interest from deposit date to maturity
- • RD interest is taxable as 'Income from Other Sources'
- • Minimum tenure 6 months; maximum typically 10 years (120 months)
Did You Know?
How Does RD Work?
Monthly Deposits
You deposit a fixed amount every month. Each installment earns compound interest from its deposit date until maturity. The first deposit earns interest for the full tenure; the last earns for one month.
Quarterly Compounding
Most banks compound RD interest quarterly. Interest is calculated on the sum of principal and accrued interest every three months, boosting effective returns.
Maturity
At maturity, you receive total deposits plus accrued interest. Premature withdrawal may attract a penalty (typically 1-2% reduction in interest rate).
Expert Tips
RD vs FD vs SIP
| Feature | RD | FD | SIP |
|---|---|---|---|
| Deposit | Monthly | Lump sum | Monthly |
| Returns | 5.5-7.5% | 5.5-7.5% | Market-linked |
| Risk | None | None | Moderate-High |
| Tenure | 6mo-10yr | 7d-10yr | Flexible |
Frequently Asked Questions
What is a Recurring Deposit?
An RD is a savings scheme where you deposit a fixed amount monthly for a fixed tenure. Interest is compounded quarterly (most Indian banks). It's popular for disciplined savings with guaranteed returns.
How is RD interest calculated?
Banks calculate interest on each monthly installment from its deposit date to maturity using quarterly compounding. Each installment earns interest for a different duration. Effective yield is slightly higher than stated rate.
What is the minimum RD tenure?
Most banks offer 6 months to 10 years. SBI minimum: ₹100/month. Post Office RD: minimum 5 years, ₹100/month. Premature withdrawal may incur penalty (1-2% rate reduction).
Is RD interest taxable?
Yes, RD interest is fully taxable as 'Income from Other Sources.' TDS is deducted if interest exceeds ₹40,000/year (₹50,000 for senior citizens). No Section 80C benefit for regular RDs.
RD vs SIP - which is better?
RD: guaranteed returns (5-7%), capital protected, short-term. SIP: market-linked (12-15% historical), higher risk, better for long-term. RD for emergency funds, SIP for wealth creation.
What happens if I miss an RD installment?
Most banks allow 1-3 missed installments before closure. Penalty varies: ₹1-2 per ₹100 per missed month. Some banks auto-debit, reducing the risk of missed payments.
Key Statistics
Official Data Sources
⚠️ Disclaimer: This calculator is for educational purposes only. RD rates vary by bank and tenure. Verify current rates with your bank before investing. Not financial advice.
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