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RD Calculator

If you’re looking to grow your savings steadily, a recurring deposit (RD) is a smart choice. Many people prefer the safety and guaranteed returns that come with RDs offered by banks and the post office. But to truly benefit, it’s important to know the current recurring deposit interest rates and choose the best RD interest rates available. Whether you’re considering a bank RD, a recurring deposit in post office, or an RD with popular banks like SBI or HDFC, comparing the RD interest rate is key. Some seek the highest RD interest rates to maximize their earnings without risking their capital. Banks like SBI and HDFC regularly update their recurring deposit SBI interest rates and recurring deposit HDFC interest rates, so staying informed helps you pick the right option for your savings goals. With our easy-to-use RD calculator, you can calculate the total interest you’ll earn over your chosen period, helping you plan better and make smarter investment decisions.

Total Investment ₹60,000
Total Interest ₹10,000
Maturity Amount ₹70,000

Recurring Deposit (RD) – Secure Your Savings with Recurring Deposits

A Recurring Deposit (RD) is a popular savings instrument where you deposit a fixed amount every month to earn interest on it. This disciplined savings plan suits salaried professionals and anyone with a steady income. Over time, your monthly rd deposits accumulate interest, resulting in a lump sum maturity amount.

Recurring Deposit money image

How Does a Recurring Deposit Work?

  • You open a recurring account with your bank or post office and commit to depositing a fixed amount monthly.
  • Your money earns interest at the prevailing rd interest rate, compounded quarterly or monthly depending on the institution.
  • At the end of the tenure, you receive the principal amount plus the accumulated interest as a lump sum.

How is RD Interest Calculated?

Interest on RDs is compounded periodically, typically quarterly. The formula to calculate maturity amount in an RD calculator or manually is: 

                    M = P × [(1 + r/n)nt - 1] / [1 - (1 + r/n)-1]
  • P = Monthly deposit
  • r = Annual interest rate (decimal form)
  • n = Number of compounding periods per year
  • t = Tenure in years

Use our recurring deposit calculator for quick and accurate computation of your maturity amount based on your monthly contribution, tenure, and recurring deposit interest rates.

Why Use an RD Calculator?

  • Quick Estimates: Calculate your expected maturity before you start saving.
  • Compare Returns: Explore different rd account interest rates and tenure combinations.
  • Plan Your Goals: Align your RD investments with financial goals such as education, travel, or emergency funds.
  • Visualize Growth: See how your monthly deposits grow with interest over time.

Current RD Interest Rates in India

Recurring deposit interest rates vary by bank and institution. For example, HDFC RD interest rates often range between 5.5% to 7.5%. The post office RD interest rate is government-backed and competitive, usually around 6.7% for a 5-year tenure. Senior citizens may receive slightly higher rates.

Post Office RD Account Details

The Post Office offers a reliable RD scheme with a fixed tenure and assured returns. Use our post office RD calculator to estimate your maturity amount at the current post office RD interest rate.

Taxation and Withdrawal

Interest earned from your RD deposits is fully taxable and added to your income. TDS is applicable if the interest exceeds ₹40,000 (₹50,000 for senior citizens) annually. Premature withdrawal is possible but often incurs penalties and lower interest rates.

RD Compared to Other Investment Options

Investment Option Risk Returns Liquidity
Recurring Deposit (RD) Low Moderate (Fixed) Low
Post Office RD Very Low Moderate (Govt-backed) Low
Mutual Fund SIP Medium to High Market-linked High
Savings Account Low Low (2%–4%) Very High

Related Calculators

Explore more financial tools to assist your planning:

Use our free recurring deposit calculator to compare rd interest rates and plan your savings with banks like SBI, HDFC, and the Post Office.

❓ Frequently Asked Questions (FAQs) About Recurring Deposits

What is a recurring deposit? ▼
A recurring deposit is a fixed monthly investment plan that earns compounded interest over a fixed tenure, encouraging disciplined savings.
How does an RD calculator work? ▼
An RD calculator computes the maturity amount by applying compound interest on each monthly deposit throughout the tenure.
Can I use the RD calculator for Post Office RD accounts? ▼
Yes, our post office RD calculator helps estimate returns based on the latest government-backed interest rates.
What are the current RD interest rates? ▼
RD interest rates range between 5.5% and 7.5% for most banks, with the Post Office offering around 6.7% for 5-year tenure. Senior citizens may get additional benefits.
Is the interest earned on RD taxable? ▼
Yes, interest earned is taxable under income from other sources. TDS applies if interest exceeds threshold limits.