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RD calculator
A recurring deposit takes a fixed sum every month at a fixed rate. Find out what it pays at maturity.
How RD interest is calculated
Each monthly instalment is treated as its own small deposit that earns interest, compounded quarterly, from the month it is paid until maturity:
Maturity = Σ M × (1 + r ÷ 4)^(months remaining ÷ 3)
₹5,000 a month for five years at 6.7% builds to about ₹3,56,829 on deposits of ₹3,00,000. The five-year post office RD pays 6.7% for the October to December 2026 quarter; bank rates vary by tenure.
When an RD makes sense
An RD is a good fit for goals one to three years away where you cannot risk a fall in value: a holiday, a gadget, an insurance premium, a down payment. For goals beyond five years, the certainty comes at a cost, since returns after tax barely keep up with prices. Compare the outcome with the SIP calculator at a modest return.
Questions
Is RD interest taxable?
Yes, at your slab rate, and TDS applies on the same thresholds as fixed deposits.
What if I miss an instalment?
Banks usually charge a small penalty per ₹100 for each month of delay, and repeated misses can close the account.