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Govt & Post Office Savings

Recurring Deposit (RD) Calculator – Calculate Monthly RD Maturity, Interest & Schedule

Calculate Recurring Deposit maturity value, quarterly compounding interest, senior citizen +0.50% rates, TDS status, and year-by-year RD growth schedule table.

₹500 (Min)₹25,000₹50,000₹1,00,000
%
5.5% (Short Term)6.7% (Post Office)7.1% (Banks)8.5% (SFBs)
Years
1 Yr (12 Mos)3 Yrs (36 Mos)5 Yrs (Post Office)10 Yrs (120 Mos)
RD Scheme Benefits

Adds +0.50% interest bonus

🏦 Quarterly Compounding

Standard for Indian Bank & Post Office RDs

Total RD Maturity Amount
₹7,21,114
Seven Lakhs Twenty-One Thousand One Hundred Fourteen Rupees
Total Amount Deposited ₹6,00,000
Total Interest Earned ₹1,21,114
TDS Threshold Status: TDS Applicable (>₹40k/yr)

Year-by-Year RD Growth & Balance Schedule

Progression of cumulative monthly installments, quarterly compounded returns, and closing value.

5 Years Schedule
Year Monthly Deposit Annual Deposited Total Invested Interest Gained Closing Balance

How to Use this Calculator & Formula Breakdown

1

Step 1: Input Financial Parameters

Enter your monthly RD installment amount in Rupees.

2

Step 2: Instant Client-Side Computation

Set annual interest rate % and duration in years with senior citizen toggle.

3

Step 3: Analyze Visual Breakdown & Amortization

Explore live interactive Chart.js donut chart, TDS status, and full year-by-year RD schedule table.

Mathematical Algorithm & Formula

RD Quarterly Compounding: M = Σ [ P × (1 + r/4)^(4 × (N - i + 1)/12) ], standard for Indian Banks & Post Office.

Frequently Asked Questions (FAQs)

How is Recurring Deposit (RD) interest calculated in Indian banks and Post Office?

Indian banks and the Department of Posts calculate RD interest using a quarterly compounding formula where each monthly deposit earns interest for the remaining tenure compounded every 3 months.

What is the difference between an RD (Recurring Deposit) and a SIP (Systematic Investment Plan)?

An RD provides 100% guaranteed fixed returns backed by DICGC/Government of India with zero market risk. A SIP invests monthly installments into market-linked Mutual Funds offering higher potential returns (12%-15% CAGR) with equity market volatility.

Is TDS deducted on Recurring Deposit interest?

Yes, under Section 194A, banks deduct 10% TDS if the total interest across all FDs and RDs held with the bank exceeds ₹40,000 per financial year for regular individuals or ₹50,000 for senior citizens.

Can you avail a loan against an active Recurring Deposit account?

Yes! Most public and private commercial banks allow depositors to take an instant overdraft or loan of up to 85% to 90% of their accumulated RD balance at an interest rate just 1% to 2% above the RD rate.

What happens if you miss an RD monthly installment deposit?

If you fail to pay an installment on time, banks levy a nominal penalty (usually ₹1 to ₹1.50 per ₹100 per month). If consecutive installments are missed (usually 4 to 6 months), the bank may prematurely close the RD account.

What is the minimum and maximum duration for an RD account in India?

The minimum tenure for a bank RD is 6 months, while the maximum is 10 years (120 months). For Post Office RD, the standard mandatory tenure is 5 years (60 months).