Recurring Deposit Calculator


Recurring Deposit

Monthly Deposit Amount: ` 2,00,000
Rate of Interest: 7.5 %
Tenure: 24 months
Maturity Amount: `
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Recurring Deposit is a savings option that helps you plan for your future needs. People with regular income can make a financial provision for the future by investing a small amount of their income regularly in a recurring deposit (RD) for a pre-determined period and earn interest on those investments, as high as fixed deposits. When your deposit finally matures, the lump sum including the principal and accumulated interest is paid back to you. More importantly, the interest on RD remains same throughout the term once you have invested, unlike many other investment products which are subject to periodic change. No matter what the interest rate being offered, you can easily estimate your potential earnings by using a Recurring Deposit Calculator.

Features of RD

The main features of RD account are as follows:-

  1. Recurring Deposit schemes are effective in inculcating a regular habit of money saving.
  2. The minimum amount that can be deposited in RD accounts may start from an amount as small as Rs.10. The minimum amount defers from bank to bank.
  3. The minimum period of deposit starts from 6 months and may extend to the maximum period of 10 years in most RD Accounts.
  4. RD interest rates are equal to that offered on a Fixed Deposit, which is generally higher than any other Savings scheme offered by banks.Using a recurring deposit calculator you can figure out how much you will get back at the end of the RD Tenure.
  5. RD accounts do not allow premature or mid-term withdrawals. However, the bank may allow closing the account before the maturity period with a penalty for premature withdrawal.
  6. RD offers an additional benefit of using the deposit as collateral to take a loan against the deposit.
  7. RD can be funded periodically directly from your Savings or Current account through standing instructions given to the bank by you.

RD Interest Calculator

Paisabazaar’s RD Calculator helps you calculate the maturity value (principal amount + interest earned) of your deposit made under the recurring deposit schemes of any banks in India. This Recurring deposit calculator does not account for TDS (Tax Deduction at Source) as different banks use varied periods for deduction of the TDS. That said, the recurring deposit interest calculator is still an excellent tool for determining the future value of your RD.

Income Tax (TDS) on RD

Until May 2015, banks were not required to deduct TDS (Tax Deduction at Source) on the RD interest rates earned on accounts. But, with effect from 1st June 2015, Tax Deduction at Source (TDS) is applicable on interest earned on RD accounts. Therefore the current TDS rules for RD are similar to Fixed Deposit rules. If in case the account holder does not want the Tax to be deducted at source, they must submit:

  • Form 15G or 15H (for applicants other than those applying as company or co-operative society) or
  • Exemption Certificate under Section 197 (in case of all holders) or
  • Any other Tax Exemption Certificate
  • All these forms or tax exemption certificates have to be submitted with the bank every financial year for each RD held by the individual.

How is the Recurring Deposit Interest Calculated?

Most banks that offer recurring deposits compound the interest on a quarterly basis. Banks use the following formula for RD interest calculation in India or the maturity value of RD:

(Maturity value of RD – based on quarterly compounding)

M = R [(1+i) n – 1]
1- (1+i) -1/3


M = Maturity value of the RD

R = Monthly RD installment to be paid

n = Number of quarters (tenure)

i = Recurring deposit interest rate

Instead of having to complete this calculation by hand, you can easily use the Recurring deposit calculator

Eligibility for RD

Almost all Indian banks allow resident Indians, HUF (Hindu Undivided Families) as well as NRIs (Non- Resident Indians)to put an account under their respective recurring deposit schemes. Some banks even offer RD scheme for children of course with guardians to supervise their finances. No matter which bank or company you invest with or the rate you receive on the RD, the recurring deposit calculations are carried out using the same formula or by simply using a recurring deposit calculator.

RD for NRIs or NREs

The interest earned on an NRE or Non-Resident External RD account is free from tax in India. NRI or NRE RD accounts can be availed by non-resident Indians to invest small sums of money on a monthly basis from foreign income of the NRI account holder. These RD schemes can be completely repatriated and offer multiple tenure options with no taxes charged on the interest earned on these accounts.

Recurring Deposit for Senior Citizens

Customers above the age of 60 years i.e. Senior Citizens are offered even more beneficial RD interest rates. For Senior Citizen RD schemes, the minimum tenure and loan amount applicable is set as per the Bank’s policy and therefore may differ from bank to bank. But usually, the interest rate offered on RD for senior citizens is 0.5% higher than those offered on regular RD accounts.