Calculate returns on your Recurring Deposit

Recurring Deposit Calculator

Monthly contribution towards RD

I expect returns up to

1% 15%

My tenure of investment

1 Year 10 Years
12 Months 120 Months

Investment Break up

Total investment


Interest earned


If you invest ₹50,000 per year from today for 3 years you will get

Maturity Value

₹ 19,91,219.65

RDs or recurring deposits are an investment tool which allows investors to make regular monthly investments and save money for the long term. With a interest rate of 4% to 8% and can save with a flexible tenure of 6 months to 10 years.

Is RD Really Beneficial?

Here’s another example which shows how SIPs provide superior returns as compared to RDs. Let us assume that you invest Rs.10,000 every month in your RD account for 15 years. RDs generally offer 7%-8% interest rates. Using 8% for RD calculations, you will end up with Rs.34.6 lakh from your RD. Now, if you were to put this money in a SIP with an average return of 15%, you would earn Rs.66.8 lakh from your SIP. The total investment in both cases remains the same, but you earn more from SIP than from RD.

Tax benefits on RD

Similar to other personal tax-saving and investment instruments, recurring deposit schemes also attract taxes. A TDS of 10% is deducted on the returns accrued from an RD if the total interest exceeds Rs.10,000 in a single financial year. Compare this to the SIP scheme, and you can see that SIPs are more beneficial for the long term. Since long-term gains from equity are tax-free, any SIP which invests in ELSS (Equity Linked Mutual Funds) is also tax-free after one year.

RD Interest Rate Calculator

Interest on RD is compounded quarterly, in most banks.
The formula for this is : M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )

In this,
M = Maturity Value
R = Monthly Installment
n = Number of quarters
I = Rate of interest/400

So, if you invest in RD and put in Rs. 5,000 per month for a year, at the interest rate of 8%, your total value will be calculated as:

R = 5000 n = 4 (one year has four quarters)

I = 8.00/400 M = Rs. 62, 647 in one year

Which is the Best RD – How to Choose

There are many RD schemes available in the market. There are a couple of criteria you can use to choose between these schemes: Check which bank offers you the highest interest rate for the deposit amount and the tenure that you have fixed. Check for banks with the lowest penalty rates for premature withdrawals. This will ensure that your funds stay liquid and you can withdraw them whenever you need without losing much money.