RD Calculator (Recurring Deposit Maturity, Quarterly Compounding)
Recurring deposit maturity amount and interest from the monthly instalment, rate and tenure, compounded quarterly as Indian banks do, with the TDS rule.
Inputs
- Deposited₹6,00,000(83%)
- Interest₹1,19,328(17%)
- Total deposited
- ₹6,00,000
- Interest earned
- ₹1,19,328
- Tenure
- 60 months
- Quarterly rate
- 7% ÷ 4 = 1.75%
- First instalment grows by
- (1 + 0.0175)^(60 ÷ 3) = 1.4148; the last, by one month's worth
- Banks deduct TDS at 10% (with PAN) once your total interest from that bank in a financial year passes ₹50,000, or ₹1,00,000 for senior citizens — Section 393 of the Income-tax Act, 2025 (formerly 194A). Form 15G/15H stops it if your income is below the taxable limit.
Use this calculator on your own site
Free embed
- Two lines of HTML, unlimited views
- Shows a small CalculateEveryday bar, with a credit link under the calculator
What each RD input means
- Monthly deposit
- The instalment you pay every month. Banks set a minimum, often ₹100 to ₹1,000, and the amount cannot change during the tenure.
- Interest rate (annual)
- The annual rate the bank offers for that tenure on the day you open the RD. Senior citizens usually get 0.25–0.5% more.
- Tenure
- The number of monthly instalments, from 6 months to 10 years at most banks; post office RDs run for 5 years.
RD formula
Maturity = Σ R × (1 + r/400)^(m/3), over each instalment, with m the months it stays in the RD · interest = maturity − R × tenure
A recurring deposit lets you put a fixed amount into a bank or post office every month for a set tenure, usually 6 months to 10 years, at a rate fixed on the day you open it. Indian banks compound RD interest quarterly, so each instalment grows at a quarter of the annual rate for every three months it stays in the account. The first instalment earns for the whole tenure and the last for just one month, and the maturity amount is the sum of all of them — which is why the interest on an RD is much less than the same total put into a fixed deposit on day one. The page adds up each instalment's growth, shows the quarterly rate and how much the first instalment grows by, and splits the maturity into deposits and interest. RD interest is taxed as income in the year it accrues. Banks deduct TDS at 10% (with a PAN) once your total interest from that bank in a financial year — RDs and FDs together — passes ₹50,000, or ₹1,00,000 for senior citizens, under Section 393 of the Income-tax Act, 2025; Form 15G or 15H stops the deduction if your income is below the taxable limit.
RD worked example
A ₹10,000/month RD at 7% for 5 years (60 months) with quarterly compounding matures at about ₹7,19,328 — ₹6,00,000 deposited and ₹1,19,328 in interest. The quarterly rate is 1.75%, so the first instalment grows by 1.0175^20 = 1.4148 to ₹14,148, while the last earns barely a month's interest.
More RD examples
₹5,000 a month for 2 years at 6.8%: ₹1,20,000 goes in and the RD matures at ₹1,28,829, so the interest is ₹8,829 — well under the ₹50,000 TDS threshold, so no tax is deducted at source, though the interest is still taxable income.
Where the RD calculator can give the wrong answer
- Banks round interest and may credit it at slightly different points in the quarter, so a bank's own figure can differ from this by a few rupees.
- Missed instalments usually attract a small penalty set by the bank, and several missed instalments can lead the bank to close the RD.
- Breaking an RD early usually pays the rate for the period actually held minus a penalty of about 0.5–1%.
- Post office RDs follow the government's quarterly-notified rate and their own rules; check India Post's current rate.
- TDS is not the final tax. RD interest is added to your income and taxed at your slab rate; TDS is credited against that.
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RD reference table
| Tenure | Deposited | Maturity | Interest |
|---|---|---|---|
| 12 months | ₹1,20,000 | ₹1,24,621 | ₹4,621 |
| 24 months | ₹2,40,000 | ₹2,58,198 | ₹18,198 |
| 36 months | ₹3,60,000 | ₹4,01,373 | ₹41,373 |
| 60 months | ₹6,00,000 | ₹7,19,328 | ₹1,19,328 |
RD FAQ
- Each monthly instalment is compounded quarterly for the months it stays in: R × (1 + r/400)^(months ÷ 3). Add up all the instalments. ₹10,000 a month at 7% for 12 months comes to ₹1,24,621.
- Quarterly at almost all Indian banks and at the post office. The page compounds quarterly, using fractional quarters for instalments that stay in for a number of months that isn't a multiple of three.
- Yes, once your total interest from that bank in the financial year passes ₹50,000 (₹1,00,000 for senior citizens). TDS is 10% with a PAN. Submit Form 15G (or 15H if you are 60 or over) if your total income is below the taxable limit.
- An FD of the same total earns more, because all the money earns interest from day one, while RD instalments arrive month by month. An RD suits money you save from each month's income; an FD suits a lump sum you already have.
- An RD pays a fixed, guaranteed rate; a SIP in a mutual fund can earn more over long periods but its value goes up and down. Many people use an RD for goals a year or two away and a SIP for goals five years or more ahead.