How to use this RD calculator
A Recurring Deposit lets you build savings through fixed monthly deposits at a guaranteed bank rate, making it ideal for short-term goals where you cannot risk market volatility. Each instalment earns interest for the time it remains invested.
This calculator estimates your RD's maturity value from your monthly deposit, interest rate and tenure, so you can plan a goal-based savings target with confidence.
How RD interest accrues
Unlike an FD, where the whole amount is invested at once, each RD instalment earns interest only from the month it is deposited. Earlier instalments therefore earn more than later ones.
Banks typically compound RD interest quarterly, which the calculator reflects when projecting maturity.
RD versus SIP
An RD offers a guaranteed return with no market risk, suiting short horizons and emergency-fund building. A SIP in mutual funds carries market risk but has historically delivered higher long-term returns.
Choose an RD when capital safety and a known maturity figure matter more than maximising growth.
Tax and discipline
RD interest is taxable at your slab, and TDS rules similar to fixed deposits now apply, so the figure shown is pre-tax.
Missing instalments usually attracts a small penalty, so set the monthly amount at a level you can sustain for the full tenure.