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 (RD) is an investment option offered by banks and financial institutions in India. It is one of the low-risk options offering higher returns than a savings account and coupled with flexible tenure choices.


Recurring Deposit, or more commonly known as RD, is a financial investment option that works like an FD but provides fairly high flexibility. By recurring, it means something that occurs repeatedly over a course of time. Thus, investing in an RD means investors can opt to invest in instalments rather than depositing a lump sum amount.


Highest RD Rates Offered by Various Banks in India (2020)


RD Interest Rates (per annum)
Bank Name Regular Customers Senior Citizens Tenure
Utkarsh Small Finance Bank 8.00% 8.50% 24 months to 36 months
Fincare Small Finance Bank 7.50% 7.50% 36 months 1 day to 42 months
Suryoday Small Finance Bank 7.50% 8.00% 5 years
Jana Small Finance Bank 7.50% 8.00% 36 months
Ujjivan Small Finance Bank 6.50% 7.00% 12 months to 24 months
Equitas Small Finance Bank 7.15% 7.75% 30/36 months
IndusInd First Bank 7.00% 7.50% 12 months to 33 months
Yes Bank 7.00% 7.50% 12 months to 33 months
HDFC Bank 5.50% 6.00% 90/120 months
Axis Bank 5.50% 6.00% 5 years to 10 years
SBI Bank 5.40% 5.90% 5 years to 10 years


Interest rates updated on 16th September 2020. Source: Bank Websites. Higher rates are available to senior citizens, usually 0.50% more than the standard rates.


Who Can Invest in Recurring Deposits?


Investing in a recurring deposit is a viable option for those who currently do not have a big amount of money but are looking for a low-risk investment option where higher returns can be earned with regular deposits.


All Indian residents and Hindu Undivided Families (HUFs) are eligible to open a Recurring Deposit with their bank. Some banks also allow minors to open an RD so that the habit of saving is inculcated in them since childhood. However, minors should have guardians to supervise their finances. Most of the banks ask their customers to set an amount in multiples of 100.


Tax on Recurring Deposits


Like FD, investing in an RD also qualifies for taxation. For the money invested in a recurring deposit, tax is deducted at source, i.e. TDS. This tax is levied @ 10% p.a. if the deposit amounts to more than Rs. 40,000. It should be noted that it is the interest earned on RD that is taxable and not the full maturity amount. Investors with no taxable income must submit Form 15G to avoid TDS on both recurring deposits and fixed deposits.


Factors Affecting RD Interest Rates


While deciding the rate of interest to be given to the depositor, certain factors are taken into consideration. Some of the important ones are explained further:



Tenure is basically the duration for which the money is invested in a recurring deposit. Interest depends on various factors and this is one of those. RD interest rate varies across all the tenure options.


Age of the Applicant

Banks and other financial institutions provide a higher rate of interest to senior citizens. This may range from 0.50% to 0.75% additional interest on the regular deposit rates. Here, the minimum age criteria of senior citizens may vary as per the provider.


Current Economic Environment

Banks and other financial institutions providing recurring deposits keep on updating their interest rates as the economic conditions change. There are various reasons for this like change in repo rate by the RBI, inflation and so on. So, the prevailing conditions do play a vital role in ascertaining the RD rates.


Banks & Financial Institutions

It is one of the factors that have the potential to majorly affect the maturity amount one may get. RD is provided by the banks and financial institutions. Investing in a bank recurring deposit is a safer investment option. Individuals can also invest in a company recurring deposit rated. But, before they opt to invest in a company recurring deposit, they should check the credit ratings on the deposits provided. Company recurring deposits with high / better credit ratings like FAAA, FAA are considered to be safer than other corporate fixed deposits.


How Does Paisabazaar RD Calculator Work?


When narrowing down which RD to go for, it is important to know which combination of instalment, rate of interest and deposit tenure shall lead to better returns. The RD Calculator on this page targets exactly that.


There are 3 fields to be filled in order to ascertain one’s potential earnings when investing in a recurring deposit, viz.:


1. Monthly Deposit Amount

The amount that is to be deposited every month

2. Rate of Interest

Interest that the respective provider shall provide

3. Deposit Tenure

Duration for which deposits are to be made


Steps to Use the RD Calculator

Follow the steps given here to easily sail through the calculation process:


  1. Enter the monthly deposit amount in the first field by either typing amount in the box provided or by simply adjusting the slider.
  2. Next, fill in the rate of interest. Use the slider to adjust the interest or directly enter in the space provided.
  3. The last step involves providing the deposit tenure and this can also be done using the slider or typing in the space given.

In the blue box adjacent to the tool, you will find the maturity amount. IF you wish to change rate of interest, deposit amount or tenure, simply adjust the corresponding sliders and see the change in calculated maturity amount.


Please note that the amount calculated is applicable only when the interest is compounded quarterly.


How is Interest on RD 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 = Rate of Interest / 400


Instead of having to complete this calculation manually, customers can easily use the recurring deposit calculator.


Investing in an RD is a good shift for those who do not wish to invest all at once but in regular installments while earning higher returns on the same. Thus we advise customers to make use of Paisabazaar RD calculator to narrow down the best combination with a goal to earn better returns. This shall give customers a heads up before finally going in to pool their money.