RD Calculator – Recurring Deposit Maturity & Interest

QUICK REFERENCE

What ₹1,000 a month grows to

Maturity value of a recurring deposit of ₹1,000 a month, compounded quarterly, before tax. Interest is a small share of a short RD and a growing one of a long RD: at 7%, one year adds about 4% to what you put in, ten years nearly 45%.

Values rounded to the nearest rupee. Maturity scales with the deposit: ₹5,000 a month is five times each figure.

HOW IT WORKS

How a recurring deposit grows

A recurring deposit takes a fixed amount from you every month for a set term and pays it back, with interest, at the end. Each instalment earns interest only for the time it has been in the account, so the first one earns for the whole term and the last for a single month. Indian banks and the Post Office compound RD interest every quarter, and the calculator uses the same method:

On the default example, ₹5,000 a month at 7% for 5 years, you deposit ₹3,00,000 and the account matures at ₹3,59,664. The year-by-year table shows how the interest picks up pace: ₹2,311 in the first year, and ₹22,246 in the fifth, as the balance it is earning on grows.

Post Office RD

The Post Office recurring deposit runs for a fixed 5 years (60 instalments) and pays a rate the government sets every quarter. For October–December 2026 it is 6.7%, compounded quarterly, the same rate it has paid since 1 October 2023. The rate in force on the day you open the account applies for its whole term, so a later change does not affect an account already running. Use the “Post Office rate” button above to fill it in: ₹1,000 a month matures at ₹71,366, and ₹5,000 a month at ₹3,56,829.

Tax: what you keep

RD interest is not tax-free. It is added to your income and taxed at your slab rate, year by year as it accrues, even though you only receive it at maturity. At the 30% slab plus 4% cess, ₹18,615 of the default example's ₹59,664 interest goes in tax, leaving ₹3,41,049; in effect a 7% RD earns about 4.82% a year after tax. Banks deduct TDS at 10% once the interest they pay you in a year crosses the TDS threshold. That is an advance payment, counted against your final tax bill rather than added to it. If your income is below the taxable limit, submit Form 15G (15H if you are 60 or older) to the bank to stop the deduction.

RD, FD or SIP?

With money you already have, a fixed deposit earns more, because the whole sum earns interest from the first day: ₹3,00,000 in a 7% FD for 5 years grows to ₹4,24,433, against ₹3,59,664 from the same ₹3,00,000 paid into an RD over the five years. An RD is for money you have not earned yet: it turns a monthly surplus into a lump sum, at a guaranteed rate. A SIP in an equity fund does the same job with no guarantee but a higher expected return; over ten years and after tax, ₹5,000 a month in a 7% RD leaves ₹7,84,734 at the 30% slab. The SIP vs FD guide sets the two side by side.

Saving towards a target

Because the maturity value grows in step with the deposit, the calculator can work backwards: choose “Reach a target”, enter the amount and the tenure, and it gives the monthly deposit, rounded up to the rupee so the plan actually gets there. ₹5,00,000 in 5 years at 7% takes ₹6,951 a month; ₹10,00,000 in 10 years takes ₹5,757 a month, because a longer term gives the interest more time to do the work.

Missed instalments and early closure

An RD expects every instalment on time. Banks and the Post Office charge a small penalty on a missed month and can close an account after several misses, and closing an RD early usually means a lower rate on what has built up. The terms differ from bank to bank, so check them before you open one, and pick a monthly amount you can keep up for the whole term.