Calculators / Government & bank savings
Government & bank savings
RD Calculator India
Work out the maturity value of a recurring deposit: put in the monthly amount, the rate and the months, and see what you get back and how much is interest. Then see what you keep after tax, and whether it beats inflation, which is the question most RD calculators skip.
₹5,000 a month in a 7% RD for five years matures at ₹3.6 lakh. After 30% tax the RD earns about 5% a year, below 6% inflation, so in today's money you get back a little less than you put in. An RD protects your rupees, not their buying power.
RD rates vary by bank and tenure and change often, and the post office RD rate is reset by the government every quarter. Enter your own rate above. Last reviewed September 2026.
Open the detailed calculator with sliders and the full breakdown
About the RD calculator
A recurring deposit is a bank or post office deposit where you put in the same amount every month for a fixed term, at a rate locked on day one. Each instalment earns interest only for the months it stays in, and banks usually compound it every quarter. It is built for one job: reaching a known sum by a known date, with no market risk.
| Term | You put in | Maturity | Interest |
|---|---|---|---|
| 1 year | ₹60,000 | ₹62,311 | ₹2,311 |
| 2 years | ₹1,20,000 | ₹1,29,099 | ₹9,099 |
| 3 years | ₹1,80,000 | ₹2,00,686 | ₹20,686 |
| 5 years | ₹3,00,000 | ₹3,59,664 | ₹59,664 |
| 10 years | ₹6,00,000 | ₹8,68,509 | ₹2,68,509 |
Quarterly compounding, before tax. Interest grows faster than the deposits because early instalments keep earning on their earlier interest.
What will ₹5,000 a month in an RD give me?
At 7% for five years, ₹3,59,664, of which ₹59,664 is interest on the ₹3 lakh you put in. That is before tax. Change the amount, rate or months above for your own figure.
How is RD interest calculated?
Each monthly instalment is treated as its own small deposit. It earns the RD rate, compounded every quarter, for the months left until maturity. The first instalment earns for the full term; the last one earns for a single month. The calculator adds up all of them. This is the standard method banks use for RDs, and it is why the interest looks smaller than you might expect.
Why is the interest so much less than 7% of what I put in?
Because your money arrives slowly. The 7% applies to each instalment only for the time it is in the RD, so on average your money is invested for about half the term. On the default, ₹59,664 of interest on ₹3 lakh is about 20% over five years, not 35%. Compare it with putting the whole ₹3 lakh in a fixed deposit on day one:
| How you put it in | Maturity | Interest |
|---|---|---|
| One FD, ₹3 lakh on day one | ₹4,24,433 | ₹1,24,433 |
| RD, ₹5,000 a month | ₹3,59,664 | ₹59,664 |
Same rate, same total. The FD earns about twice the interest because every rupee works for the full five years. An RD is for money you do not have yet.
Is an RD safe?
For your rupees, yes. A bank RD is covered by DICGC deposit insurance up to ₹5 lakh per depositor per bank, including interest, and a post office RD is backed by the government. Keep large balances within the ₹5 lakh limit at any one bank. The risk an RD does not protect against is inflation, which the next answer covers.
Does an RD beat inflation?
Usually not after tax. A 7% RD compounded quarterly works out to about 7.2% a year. At a 30% tax slab you keep about 5%, which is below 6% inflation. In today's money, the ₹5,000 a month you put in over five years is worth about ₹2.61 lakh, and the ₹3,41,765 you keep after tax is worth about ₹2.55 lakh. You end up with more rupees and slightly less buying power. At a lower tax slab the gap closes, but the real return stays thin.
How is RD interest taxed?
It is added to your income and taxed at your slab rate, every year as it accrues, even though you receive it only at maturity. At a 30% slab, ₹17,899 of the default ₹59,664 goes in tax. Banks also deduct TDS at 10% once your total FD and RD interest at that bank crosses ₹50,000 in a year (₹1 lakh for senior citizens), or 20% if the bank does not have your PAN. TDS is only an advance; your final tax is at your slab. If your total income is below the taxable limit, you can give the bank a no-TDS declaration.
What happens if I miss an instalment or close it early?
Most banks charge a small penalty for a missed instalment, and after several missed months may close the RD. Closing early is allowed, but the bank usually pays a lower rate than the one agreed, often about 1% less, for the period the money was in. Check your bank's terms before you open one, and pick a monthly amount you can keep up in a lean month.
RD or SIP?
It depends on when you need the money. For a goal one to three years away, an RD's certainty is worth more than a SIP's higher expected return, because a market fall just before the date can undo the plan. For five years and more, an equity SIP has historically done far better. Over the same five years, ₹5,000 a month at an assumed 12% would grow to about ₹4.06 lakh against the RD's ₹3.6 lakh, but with real ups and downs along the way and no guarantee.
Bank RD or post office RD?
Both do the same job. A post office RD runs for five years at a rate the government resets every quarter, and is backed by the government itself. A bank RD lets you pick a term, often from six months to ten years, at the bank's own rate, and is covered by DICGC insurance up to ₹5 lakh. Compare the current rates on the day you open it, and choose the term that matches your goal date.
What is an RD good for?
Building a known sum by a known date with no surprises: a school fee next year, a car down payment, a festival or a trip. It is also a good first habit for someone who has never saved regularly. For your emergency fund, a sweep-in FD or a liquid fund is more flexible, because you can take out part of it without breaking the whole deposit.