About the RD Calculator
A recurring deposit (RD) lets you deposit a fixed amount every month at a fixed interest rate, making it a disciplined way to save for a near-term goal. This calculator estimates the maturity value and total interest using quarterly compounding.
RD vs FD
An FD is a single lumpsum locked in at the start; an RD builds up through equal monthly deposits. RDs suit those saving from regular income, while FDs suit a surplus you already have. Both offer predictable, fixed returns.
Using an RD well
RDs are ideal for short-term goals — a planned purchase, an emergency buffer or a down-payment fund. For long-term wealth, market-linked options like SIPs have historically done more, with more variability.
RD Calculator — frequently asked questions
How is RD maturity calculated?
Each monthly deposit earns compound interest for the months remaining until maturity; the calculator sums these up using quarterly compounding.
Is RD interest taxable?
Yes — RD interest is taxable as per your income slab, and TDS may apply. The figure shown is before tax.
Can I withdraw an RD early?
Most banks allow premature closure with a small penalty on the interest rate. Terms vary by bank.