RD Calculator — Recurring Deposit Maturity & Interest Calculator
Calculate recurring deposit maturity amount, interest earned, and monthly growth. Compare post office RD vs bank RD rates and understand premature withdrawal.
Recurring deposits are for people who can't make a large lump sum investment but still want the safety of a fixed deposit. You put in a fixed amount every month, and the bank compounds it — not on the full amount, but on each instalment separately. That distinction matters for the math.
Use the CalcHub RD Calculator to see exactly what you'll walk away with.
How RD Interest Works
Unlike an FD where you deposit once and it compounds cleanly, each monthly RD instalment has a different tenure. Your first instalment earns interest for the full period. Your last instalment earns interest for just one month.
Maturity formula for each instalment:A = P × (1 + r/n)^(n×t)
Where each instalment P earns interest for its remaining tenure. The total maturity is the sum of all these individual calculations.
Most banks (and post offices) compound RD interest quarterly.
RD Maturity Table
Post Office RD rate: 6.7% (compounded quarterly)| Monthly Deposit | 5 Years | 10 Years |
|---|---|---|
| ₹500 | ₹35,375 | ₹83,376 |
| ₹1,000 | ₹70,749 | ₹1,66,751 |
| ₹2,000 | ₹1,41,499 | ₹3,33,502 |
| ₹5,000 | ₹3,53,747 | ₹8,33,755 |
| ₹10,000 | ₹7,07,494 | ₹16,67,510 |
| Monthly Deposit | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| ₹1,000 | ₹12,459 | ₹39,976 | ₹71,592 |
| ₹5,000 | ₹62,295 | ₹1,99,878 | ₹3,57,960 |
| ₹10,000 | ₹1,24,589 | ₹3,99,756 | ₹7,15,920 |
Post Office RD vs Bank RD
| Feature | Post Office RD | Bank RD |
|---|---|---|
| Current rate | 6.7% p.a. | 6.5–7.5% (varies by bank) |
| Tenure | 5 years (extendable) | 6 months to 10 years |
| Minimum deposit | ₹100/month | ₹100–₹500/month |
| Compounding | Quarterly | Quarterly |
| Premature withdrawal | After 3 years | After 3–6 months (varies) |
| Nomination facility | Yes | Yes |
| Government backing | Yes | DICGC (up to ₹5L) |
Premature Withdrawal
Most banks allow breaking an RD before maturity, typically after a minimum lock-in of 3–6 months. The penalty is usually a 1–2% reduction from the rate applicable for the actual duration held.
Example: You opened an RD at 7.0% for 5 years but close it after 2 years. The 2-year rate might be 6.75%, and with a 1% penalty, you'd get 5.75% for those 2 years.At the post office, you can close an RD prematurely only after 3 years, and only after completing 12 monthly instalments.
Tax Treatment
Interest earned on an RD is fully taxable as income — the same as FD interest. If your total interest income across all deposits exceeds ₹40,000 in a year (₹50,000 for senior citizens), the bank will deduct TDS at 10%. Submit Form 15G (or 15H for seniors) if your total income is below the taxable threshold.
How to Use the Calculator
- Go to the CalcHub RD Calculator
- Enter monthly deposit amount (₹)
- Enter interest rate (annual %)
- Set tenure in months or years
- Get maturity amount, total interest, and monthly accumulation chart
Can I change my RD instalment amount midway?
Generally no — the instalment is fixed when you open the account. If your income changes and you want to increase your monthly savings, you'd need to open a second RD alongside the existing one.
Is RD better than SIP in mutual funds?
For capital safety and guaranteed returns: RD. For long-term wealth creation (5+ years): equity SIP has historically delivered much better returns (12–15% vs 6.7–7.5%). RD is for goals within 1–5 years or for people who can't handle market fluctuations.
What happens if I miss an RD instalment?
Most banks charge a small penalty — typically ₹1.50 per ₹100 per month for the period of default. Post office charges are similar. If you miss several months consecutively, the account may be treated as irregular and can be discontinued.
Related Calculators
- FD Calculator — lump sum fixed deposit
- PPF Calculator — 15-year tax-free savings
- SIP Calculator — equity mutual fund SIP
- Post Office Savings Calculator — all post office schemes