Eternexa

RD Calculator

See your recurring deposit’s maturity — monthly savings compounded quarterly with the exact bank and post-office formula.

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Your recurring deposit

₹5,000
6.5%
5 years
Maturity value after 5 years
₹3,54,954

₹5,000 a month at 6.5%, compounded quarterly

15%of the maturity is interest
You deposit
₹3.00 Lakh
Interest earned
₹54,954
Months of saving
60
  • What you deposited
  • Interest earned
What it grows toWhat you investYr 0Yr 1Yr 3Yr 4Yr 5
RD valueAmount deposited

How the maturity is built

Your own money first, then what the bank adds on top of it.

Total deposited
₹3,00,00060 × ₹5,000
+ Interest earned
₹54,954compounded quarterly
= Maturity value
₹3,54,954

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Calculation method & official sources

Estimates monthly deposits with quarterly compounding at the entered rate. Does not retrieve bank/post-office rates, model missed-instalment penalties or calculate your personal tax. Tax notes are general information.

Eternexa is an independent app. It is not affiliated with, endorsed by, authorised by or representing the Government of India, any state government or any government entity. It does not provide official government services.

Results are estimates for general information, not financial, investment, tax or legal advice. Verify the applicable period, eligibility and official rules before acting.

All official sources & calculator methods →

What is a recurring deposit?

A recurring deposit turns saving into a standing instruction: you deposit a fixed amount every month for a fixed tenure, the bank pays a fixed interest rate, and you collect a guaranteed maturity amount at the end. It is the disciplined saver’s instrument — an FD you build one salary at a time.

RDs are offered by every bank and by India Post, for tenures from 6 months to 10 years. The rate is locked for the full tenure on the day you open it, which makes an RD ideal for goals with a date on them — school fees, insurance premiums, a Diwali fund, next year’s trip.

How RD maturity is calculated

Banks and India Post compound RD interest quarterly. Each monthly instalment earns quarterly-compounded interest for exactly the time it stays deposited — your first instalment compounds for the whole tenure, the last one for barely a month. Summing all of them gives the standard formula this calculator uses (the same one on your bank’s and India Post’s own sites):

M = R × [(1 + i)ⁿ − 1] / (1 − (1 + i)^(−1/3))

  • R = your monthly deposit
  • i = quarterly interest rate = annual rate ÷ 4 ÷ 100
  • n = tenure in quarters (months ÷ 3)

Worked example: ₹5,000 every month for 1 year at 6.5% means you deposit ₹60,000 in total and receive about ₹62,143 at maturity — ₹2,143 of interest. It looks modest for a year of saving because each instalment only earns for the months it was actually in the bank.

RD vs FD: why the same rate pays less

Run ₹5,000 a month for 5 years at 6.5% and you get about ₹3.55 lakh on ₹3 lakh deposited. Had you parked the full ₹3 lakh up front in an FD at the same rate, it would mature at about ₹4.14 lakh. The FD wins only because all the money was invested from day one — but that is exactly the point of an RD: you don’t have the lumpsum yet. The honest comparison is an RD versus money drifting through a savings account, and there the RD wins comfortably.

RD or SIP?

An RD and a SIP are the same habit pointed at different engines. The RD’s return is guaranteed and fixed; a SIP’s is market-linked — historically higher over long periods, but never promised and sometimes negative in between. A useful rule of thumb: money you will definitely need on a date (and cannot afford to see dip) suits an RD; long-horizon wealth-building suits a SIP. Many salaried savers run both side by side.

The fine print worth knowing

Missed instalments attract a small penalty (India Post charges about ₹1 per ₹100 per month; banks vary) and repeated defaults can freeze the account, so pick a deposit you can sustain. Premature closure is allowed after a lock-in with a rate cut, like an FD. Tax: RD interest is fully taxable at your slab rate and counts toward the bank’s TDS threshold (submit 15G/15H if your income is below the taxable limit). Figures here are pre-tax, and your bank’s paise-level rounding may differ marginally from the formula.

Frequently asked questions

What is the minimum amount for an RD?
India Post recurring deposits start at ₹100 a month, and many banks accept ₹100–₹500 as the minimum with no meaningful upper limit. Pick an amount you can pay every single month — consistency matters more than size.
RD or SIP — which should I choose?
An RD pays a guaranteed, fixed return — right for goals with a fixed date where a dip would hurt. A SIP into equity funds has historically returned more over long periods but is market-linked and can fall. Short-term certainty → RD; long-term growth → SIP; many people run both.
What happens if I miss a monthly instalment?
You are charged a small default fee (India Post: about ₹1 per ₹100 of deposit per month of delay; banks set their own), and the maturity amount drops slightly since that instalment compounds for less time. Several consecutive defaults can discontinue the RD.
Can I close an RD before maturity?
Yes, after a lock-in (typically 3 months at banks). You earn interest for the period the money actually stayed, usually at a reduced rate — similar to breaking an FD. Some banks also lend against the RD balance instead.
Is RD interest taxable?
Fully — it is added to your income and taxed at your slab rate, and since 2015 RD interest also counts toward TDS like FD interest. Submit Form 15G (15H for senior citizens) if your total income is below the taxable limit. This calculator shows pre-tax figures.
Disclaimer: Eternexa is an independent app. It is not affiliated with, endorsed by, authorised by or representing the Government of India, any state government or any government entity. It does not provide official government services. Results are estimates for general information, not financial, investment, tax or legal advice. Verify the applicable period, eligibility and official rules before acting. Read the official references and calculation scope.