RD Calculator
Calculate the maturity value and interest earned on a bank Recurring Deposit (RD), compounded quarterly, with this online calculator.
How is RD Maturity Value Calculated?
A Recurring Deposit (RD) lets you deposit a fixed amount every month into a bank account, earning interest that Indian banks typically compound quarterly on the running balance.
This calculator simulates each monthly deposit and applies quarterly compounding, the same approach most Indian banks use to compute RD maturity value.
For example, depositing ₹5,000 every month for 2 years at 6.5% p.a. matures to about ₹1.28 lakh, of which ₹1.2 lakh is your own deposit and the rest is interest earned.
Frequently Asked Questions
How is RD different from a Fixed Deposit?
An FD is a one-time lumpsum deposit, while an RD lets you build savings through fixed monthly instalments — useful for building a habit of regular saving.
Is RD interest taxable?
Yes. Interest earned on an RD is fully taxable as per your income tax slab, and banks deduct TDS if the interest earned in a year exceeds the prescribed threshold.
Read more: FD vs RD vs PPF: where should each rupee go?