Can I alter the monthly deposit amount in an RD?

No. The monthly installment amount is locked in when you open the account and cannot be changed during the tenure.

What happens if I miss a monthly RD payment?

Banks charge a small penalty for delayed installments, and missing consecutive payments may lead to premature closure of the RD.

Is RD interest taxable?

Yes, RD interest is fully taxable. TDS rules apply to RD interest when interest earned exceeds the threshold limits.

What is the minimum tenure for a Recurring Deposit?

The minimum tenure for opening an RD is usually 6 months, and the maximum is up to 10 years.

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Rd Calculator

Calculate recurring deposit interest and maturity amount.

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Parameters

Display Currency

Monthly Deposit₹

01 Cr

Interest Rate (p.a.)%

015

TenureYears

110

Calculation Results

Maturity Value

₹7.16 L

Total Deposited

₹6.00 L

Interest Earned

₹1.16 L

Maturity₹7.16 L

Deposited₹6.00 L (84%)

Interest₹1.16 L (16%)

Growth Projection Over Time

Yr 0

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Total Investment

Total Interest Earned

Year-by-Year Growth Breakdown

Yearly projection of invested capital, interest earned, and total balance.

Year	Invested	Interest	Balance
Year 1	₹1.20 L	₹4,513	₹1.25 L
Year 2	₹2.40 L	₹17,762	₹2.58 L
Year 3	₹3.60 L	₹40,360	₹4.00 L
Year 4	₹4.80 L	₹72,962	₹5.53 L
Year 5	₹6.00 L	₹1.16 L	₹7.16 L

Calculator Guide & Math

1How Recurring Deposit Accumulations Work

A Recurring Deposit (RD) allows you to save a fixed sum monthly. Unlike an FD, where you deposit the entire lump sum once, in an RD you make regular deposits, and each deposit compounds for the remainder of the tenure.

Formula & Math Explanation

Maturity Amount = ∑ [ P × (1 + R / 1200)^N ]

•P = Monthly installment amount.
•R = Annual rate of interest.
•N = Number of months each individual installment stays deposited. The first installment compounds for the full tenure, while the last compounds for just 1 month.

2Step-by-Step RD Calculation Example

You start a monthly RD of ₹5,000 for a tenure of 1 year (12 months) at 6% interest compounded monthly.

Calculate interest for each month: The first ₹5,000 compounds for 12 months, second for 11 months, etc.
Accumulate all installments: Maturity Value = ∑ [ 5000 × (1 + 0.005)^k ] for k from 1 to 12.
Evaluate sum: Total invested = ₹60,000; Accumulated interest = ₹1,972.
Total Maturity = ₹61,972.

Result Summary: By saving ₹5,000 monthly, you deposit ₹60,000 and receive ₹61,972 at the end of 12 months.

Recurring Deposit FAQs

An RD is a investment tool that lets you deposit a fixed sum monthly for a predefined period, earning a fixed interest rate similar to an FD.