RD Calculator
Calculate Recurring Deposit maturity amount with quarterly compounding. See year-wise growth and interest earned.
Maturity Amount
₹7.19 L
Total Deposited
₹6.00 L
Interest Earned
₹1.19 L
Year-wise Breakdown
| Year | Total Deposited | Interest Earned | Balance |
|---|---|---|---|
| Year 1 | ₹1.20 L | ₹4,621 | ₹1.25 L |
| Year 2 | ₹2.40 L | ₹18,198 | ₹2.58 L |
| Year 3 | ₹3.60 L | ₹41,373 | ₹4.01 L |
| Year 4 | ₹4.80 L | ₹74,837 | ₹5.55 L |
| Year 5 | ₹6.00 L | ₹1.19 L | ₹7.19 L |
About the RD Calculator
A Recurring Deposit (RD) is the systematic savings equivalent of a Fixed Deposit - you commit to depositing a fixed amount every month for a chosen tenure and earn guaranteed interest. RDs suit people who want the discipline of SIP but without market risk. India Post's RD at 6.7% and bank RDs at 5.5-7.5% are popular choices, especially for short-term goals like a vacation fund or annual insurance premium.
RD Maturity with Quarterly Compounding
A = P × (1 + r/4)^(4t) where each installment is compounded for its remaining tenure
P = Monthly installment · r = Annual interest rate (decimal) · t = Remaining time for each installment in years · Banks compound quarterly; Post Office compounds quarterly · Total maturity = sum of all installments' maturity values
Worked Example
₹5,000/month RD for 3 years at 7% p.a. (quarterly compounding)
Total deposited = ₹1,80,000 · Maturity amount ≈ ₹2,00,540 · Interest earned ≈ ₹20,540
Tips & Insights
- 1
Post Office RD (6.7%) is backed by the Government of India - zero credit risk and ideal for conservative investors.
- 2
RD interest is taxable. If total bank interest exceeds ₹40,000/year (₹50,000 for seniors), TDS is deducted at 10%.
- 3
Missing an RD installment attracts a penalty of ₹1.50-₹2 per ₹100 per month at most banks.
- 4
For short-term goals under 3 years, RD often beats debt mutual funds on post-tax returns for investors in lower tax brackets.
- 5
Senior citizens typically get 0.25-0.50% higher RD rates - check your bank's senior citizen RD rates.
Why this matters for you
RDs are particularly valuable for irregular earners who want to build savings discipline without taking market risk. A ₹2,000/month RD for 5 years yields roughly ₹1.43 lakh with interest - a meaningful emergency fund built painlessly. While equity SIPs deliver higher returns for longer horizons, RDs offer certainty that many investors need for near-term financial goals.
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