How to Use

Enter monthly deposit → Set interest rate → Choose tenure → View maturity

FAQ

What is a Recurring Deposit (RD)?

An RD is a term deposit offered by Indian banks where you deposit a fixed amount every month for a specific tenure and earn interest on it. It is a great way to build a corpus over time with small regular savings.

How is RD interest calculated?

RD interest is typically compounded quarterly. The interest is calculated on the amount deposited in each month and then added to the principal to generate compound interest for subsequent quarters.

RD vs FD - which is better?

RD is ideal if you have a regular monthly income and want to save a portion of it consistently. FD is better if you have a lump sum amount readily available to invest at once.

What is the minimum RD amount?

Most banks in India allow you to start an RD with a minimum deposit of just ₹100 or ₹500 per month. The maximum amount varies by bank but is generally quite high or uncapped.

Is premature withdrawal allowed in RD?

Yes, premature withdrawal of an RD is usually allowed, but banks typically charge a penalty of 1% to 2% on the interest rate. Partial withdrawals are generally not permitted.

RD vs SIP - what should I choose?

RD offers guaranteed returns and capital protection, making it low risk. SIPs in mutual funds are market-linked and carry higher risk but offer the potential for higher inflation-beating returns over the long term.

How is tax calculated on RD?

The interest earned on an RD is fully taxable as per your income tax slab. Banks will deduct TDS at 10% if the interest earned across all branches exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

What is the best RD tenure?

The best tenure depends on your financial goal. Short-term RDs (1-2 years) are good for upcoming expenses, while mid-term (3-5 years) can help build a solid savings corpus. Check bank rates, as 1-3 year tenures often offer the highest rates.

RD Calculator - Recurring Deposit