What is the RD Calculator?
A Recurring Deposit (RD) calculator estimates maturity value from the monthly contribution, annual interest rate and tenure you enter. Rates, compounding conventions and account terms vary by provider, so use the values in the product document you are evaluating.
The result is a pre-tax planning estimate. It does not rank providers, assess product suitability or promise that an entered rate will remain available for another deposit or renewal.
How does it work?
The calculator models equal monthly deposits and applies the entered annual rate using its documented RD convention. It reports total contributions, modeled interest and maturity value.
Enter the rate applicable to the account you are considering. TDS applicability and final tax liability depend on current rules, payer type and taxpayer circumstances; this calculator does not determine either.
Worked example
For an illustrative monthly deposit of ₹5,000 over 36 months, enter the annual rate stated by the provider. The calculator applies that assumption to show total contributions and modeled maturity value. Change only the rate to compare rate scenarios while keeping the contribution and tenure constant.
When to use this calculator
- 1Estimating a fixed-interest recurring-deposit scenario for a known monthly contribution and tenure.
- 2Comparing documented RD rates while keeping monthly contribution and tenure constant.
- 3You are a parent planning to open an RD in your child's name (minor account) to accumulate funds for school fees or a laptop purchase at a known future date.
- 4Modeling a separately quoted depositor-specific rate by entering that rate directly.
- 5You want to ladder multiple RDs — for example, three separate ₹3,000/month RDs maturing every 6 months — and need to calculate each maturity amount to ensure liquidity at regular intervals.
Common mistakes to avoid
- ✕Treating the pre-tax projection as take-home proceeds. Current TDS and tax treatment must be checked separately.
- ✕Comparing rates without reviewing liquidity, missed-instalment and premature-closure terms.
- ✕Assuming a currently observed government-scheme or bank rate will remain unchanged for future deposits.
- ✕Confusing compounding frequency: Some investors assume annual compounding and underestimate actual returns, while others assume monthly compounding and overestimate. All Indian bank RDs compound quarterly — using a simple interest estimate or annual compounding will give you an incorrect maturity figure.
- ✕Missing Form 15G/15H submission: Eligible investors (income below taxable limit) who do not submit Form 15G (or 15H for seniors) at the start of the financial year end up having TDS deducted unnecessarily, requiring them to claim a refund — a hassle that is entirely avoidable.
Frequently asked questions
- What RD rate should I enter?
- Use the annual rate and terms shown by the provider for the specific account and tenure you are evaluating. This calculator does not publish or select a current market rate.
- Does the RD result include tax or TDS?
- No. The output is pre-tax. Tax and TDS depend on current law, payer type and taxpayer circumstances, so verify the rules for the relevant financial year.
- Can I open an RD account online in India?
- Yes. All major banks — SBI, HDFC, ICICI, Axis, Kotak, and others — allow you to open an RD account through their net banking or mobile app instantly if you have an existing savings account. India Post also allows online RD account opening via its India Post Payments Bank (IPPB) app linked to a post office savings account. The minimum deposit is as low as ₹100/month at India Post and ₹500–₹1,000/month at most banks.
- What happens if I miss an RD instalment?
- Late-payment and closure treatment depends on the provider and account terms. This calculator assumes the entered contribution schedule is made and does not calculate penalties.
- How is an RD projection different from a mutual-fund SIP projection?
- An RD uses the documented deposit rate and account terms. A mutual-fund SIP is market-linked and uses a user-selected planning return assumption. The calculator does not recommend one product over another.