Introduction
A Recurring Deposit (RD) is a simple way to save money each month and earn interest on it. You put in a fixed amount every month, and the bank pays you interest on your growing balance. At the end of the term, you get back all the money you saved plus the interest it earned.
This RD calculator helps you find out exactly how much your monthly deposits will grow over time. Enter your monthly investment amount, the interest rate, how often interest is compounded, and how long you plan to save. The calculator instantly shows your total invested amount, estimated returns, and maturity value. It also gives you a step-by-step breakdown of the math and a chart so you can see how your money grows.
Use this tool before you open a recurring deposit so you can pick the right amount and tenure for your savings goal.
How to Use Our RD Calculator
Enter a few details about your recurring deposit below. The calculator will show you the total amount you invest, the interest you earn, and your final maturity value.
Monthly Investment: Type or slide to set the amount you plan to deposit each month. You can enter any value from ₹500 to ₹1,00,000.
Expected Rate of Interest: Enter the annual interest rate your bank offers on the recurring deposit. You can set a rate between 1% and 15%. If you want to understand how small rate differences affect your returns over time, try the Interest Rate Calculator.
Compounding Frequency: Pick how often the bank adds interest to your balance. Most banks use quarterly compounding, but you can choose daily, weekly, monthly, semi-annual, or yearly. To see how compounding frequency impacts growth on a lump sum, use our Compound Interest Calculator.
Time Period: Set how long you want to keep the RD open. Enter the tenure in years, months, and days, or drag the slider to pick the total number of months. The minimum tenure is 3 months.
Click Calculate to see your results. Click Reset to clear all fields and start over.
What Is a Recurring Deposit (RD)?
A Recurring Deposit, or RD, is a savings plan offered by banks and post offices in India. You put in a fixed amount of money every month for a set period of time. In return, the bank pays you interest on your savings. When the RD matures, you get back all the money you deposited plus the interest earned. It is one of the safest ways to save money over time. If you are exploring other safe savings options, you might also look into the PPF Calculator to compare returns from a Public Provident Fund.
How Does an RD Work?
Each month, you deposit the same amount into your RD account. The bank adds interest to your balance based on a rate it promises you when you open the account. This interest compounds, which means you earn interest on your past interest too. The more months you save, the more interest you earn. Most banks compound interest quarterly, but some do it monthly or even daily. If you are curious about how daily compounding specifically affects your returns, check out the Daily Compound Interest Calculator. To understand how much your savings earn each month, you can also use the Monthly Interest Calculator.
How to Use This RD Calculator
This RD calculator helps you find out how much money you will have when your recurring deposit matures. Enter your monthly deposit amount, the interest rate your bank offers, how often interest compounds, and the total time period. The calculator instantly shows your total invested amount, the interest you earn, and your final maturity value. It also gives you a month-by-month or year-by-year breakdown so you can see exactly how your money grows. If you want to estimate the future value of any investment, our dedicated tool can help with that as well.
Who Should Use an RD?
An RD is a good choice for people who want to save a little bit every month without taking any risk. It works well for salaried workers, students, or anyone building a savings habit. Since the interest rate is fixed when you open the account, you know exactly how much you will get at the end. Unlike stocks or mutual funds, your money in an RD is not affected by market ups and downs. If you are interested in market-linked monthly investments instead, you can explore the SIP Calculator or the Mutual Fund Calculator to compare potential returns. For a broader view of your personal finances, the Savings Calculator can help you plan across different accounts.
Key Things to Know About Recurring Deposits
- Minimum deposit: Most banks let you start an RD with as little as ₹500 per month.
- Tenure: You can open an RD for as short as 6 months or as long as 10 years, depending on the bank.
- Interest rates: RD rates usually range from 5% to 8% per year. Senior citizens often get a slightly higher rate. You can use the APY Calculator to convert the quoted rate into an effective annual yield based on your compounding frequency.
- Tax: The interest you earn from an RD is taxable. If total interest in a year crosses ₹40,000 (₹50,000 for senior citizens), the bank deducts TDS. Use our Income Tax Calculator to estimate how this interest income affects your overall tax liability.
- Penalty for missed payments: If you skip a monthly payment, the bank may charge a small penalty or close your account.
- Premature withdrawal: You can close an RD early, but the bank will usually pay a lower interest rate and may charge a penalty.
RD vs Fixed Deposit: What Is the Difference?
In a Fixed Deposit (FD), you invest a lump sum of money all at once. In a Recurring Deposit, you invest a small amount every month. Both earn a fixed interest rate. An RD is better if you do not have a large amount to invest right away but can save a fixed sum each month. An FD is better if you already have a big amount ready to invest. You can use our CD Calculator to estimate returns on a lump-sum fixed deposit, or try the Lumpsum Calculator to see how a one-time investment grows. If you are unsure whether to deposit a lump sum now or invest gradually, the Rule of 72 Calculator is a quick way to estimate how long it takes for your money to double at a given interest rate. You may also want to check the Simple Interest Calculator to compare returns when interest does not compound.