Calculator
Project your Recurring Deposit maturity, total interest earned, and effective return — quarterly compounding as per Indian bank standard.
Maturity Amount
₹2,00,686
After 3 years
Total Deposited
₹1,80,000
Interest Earned
₹20,686
Maturity
₹2,00,686
Maturity Amount
₹2,00,686
A Recurring Deposit (RD) is a savings instrument where you deposit a fixed amount every month for a chosen tenure, earning interest at a pre-set rate. At maturity, you receive the principal plus compound interest. Banks compound RD interest quarterly.
RD rates in 2026 range from 5.5% to 7.5% per annum at most banks. Senior citizens get an additional 0.25%–0.50%. Small Finance Banks (Equitas, Ujjivan, AU SFB) offer the highest — up to 8.5% — as they need to attract deposits.
Yes. RD interest is fully taxable as "Income from Other Sources" at your slab rate. Banks deduct TDS at 10% if total interest across deposits exceeds ₹40,000 (₹50,000 for senior citizens) in a year — submit Form 15G/15H if your income is below the taxable threshold.
In 2026, Small Finance Banks lead with 7.75%–8.5%. Among private banks, RBL, Yes, and IDFC First offer 7.0%–7.5%. Public sector banks like SBI and PNB hover at 6.5%–7.0%. Always compare deposit insurance — DICGC covers ₹5 lakh per bank.
Yes, but premature closure carries a penalty — usually 0.5%–1% lower interest than the contracted rate. Some banks charge a flat ₹100–₹500 closure fee. Most banks require completing at least three monthly instalments before allowing closure.
Indian banks compound RD interest quarterly. The maturity formula is M = R × ((1 + i)n − 1) / (1 − (1 + i)−1/3), where R is the monthly deposit, i is the quarterly rate (annual / 4), and n is the number of quarters. The cube-root in the denominator pro-rates the quarterly compounding into monthly instalments.
RD is best when you can save a fixed amount every month and want predictable returns. An FD pays slightly higher because the full corpus earns interest from day one. A SIP into mutual funds has higher long-run potential but carries market risk — most households use RDs for short goals (1–3 years) and SIPs for long-term wealth building.
Disclaimer: Maturity is indicative based on the chosen rate. Actual maturity may differ marginally because banks round daily balances, deduct TDS at source, and may revise rates for new deposits.
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