RD Calculator
Calculate your Recurring Deposit maturity amount and plan systematic monthly savings
Your RD Maturity Details
Complete all steps to calculate your RD returns
Everything You Need to Know About Recurring Deposits
Smart RD Investment Tips
- Start RD early in financial year for better tax planning
- Compare interest rates - Post Office RD often offers better rates
- Senior citizens get 0.5% extra interest in most banks
- RD interest is taxable - plan according to your tax bracket
- Consider 5-year Post Office RD for 80C tax benefits
- Multiple small RDs provide better liquidity than one large RD
- Auto-debit ensures disciplined savings and avoids penalties
- Premature withdrawal attracts penalty - usually 1% less interest
Understanding Recurring Deposits
Recurring Deposit (RD) is a systematic investment where you deposit a fixed amount monthly for a predetermined period at a fixed interest rate.
RD Maturity Formula:
M = R × [(1 + r)^n - 1] / [1 - (1 + r)^(-1/3)]
Where R = Monthly deposit, r = Quarterly rate, n = Number of quarters
Key Features: Fixed monthly deposits, guaranteed returns, flexible tenure (6 months to 10 years), loan facility against RD, and nomination facility available.
Frequently Asked Questions
What is the minimum amount for RD?
Most banks allow RD with minimum ₹100/month, while Post Office RD starts at ₹100/month. Some private banks may have higher minimums like ₹500 or ₹1,000.
Is RD better than FD?
RD suits regular savers with small monthly surplus. FD is better for lump sum investment. RD builds saving habit, while FD typically offers slightly higher interest rates.
Can I withdraw RD before maturity?
Yes, but with penalty. Banks usually reduce interest rate by 1% for premature withdrawal. Some banks don't allow withdrawal before 3 months.
What happens if I miss RD installment?
Missing installments attracts penalty (₹1-10 per ₹100). After 4-6 consecutive defaults, account may be closed and treated as premature withdrawal.
Is RD interest taxable?
Yes, RD interest is fully taxable as per your income tax slab. TDS of 10% applies if interest exceeds ₹40,000 (₹50,000 for senior citizens) per year.
Which RD qualifies for 80C deduction?
5-year Post Office RD and some bank RDs with 5-year lock-in qualify for Section 80C deduction up to ₹1.5 lakhs per year.
Complete RD Investment Guide
Everything you need to know about Recurring Deposits in India
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