Calculators / Government & bank savings
Government & bank savings
Recurring deposit
A fixed sum saved every month. Compounded quarterly. The exact maturity of a monthly RD.
About the RD calculator
A recurring deposit lets you save a fixed amount every month at a fixed rate. It is the disciplined cousin of the FD.
RD or SIP?
An RD gives a guaranteed, modest return with no risk. An equity SIP gives higher expected growth with real ups and downs. For a short goal, an RD. For a long one, an SIP usually wins by a wide margin.
How is RD interest taxed?
Like an FD, at your income slab. That lowers the real return, especially for higher earners.
What is an RD good for?
Building a specific sum by a specific date with certainty, like a fee or a trip a year or two away. For anything a decade out, weigh it against an SIP.