A Recurring Deposit, or RD, lets you deposit a fixed amount every month with a bank for a chosen tenure, earning FD-like interest on a growing balance. It’s a popular way to build a disciplined monthly savings habit for a specific short-to-medium-term goal.
Enter your monthly deposit amount, the interest rate and the tenure to estimate the total amount deposited, interest earned, and maturity value.
RD Calculator
Estimate the maturity value of a recurring monthly deposit.
Uses a monthly-compounding approximation commonly used for RD projections; exact bank RD formulas may use quarterly compounding and can differ slightly.
How RD maturity is estimated
This calculator approximates RD growth using monthly compounding on each instalment for the remaining months of the tenure. Banks sometimes use a slightly different formula based on quarterly compounding, so the maturity value on your actual RD statement may differ marginally from this estimate.
RD vs SIP vs FD
An RD offers a fixed, guaranteed rate like an FD but lets you invest monthly instead of as a lump sum, making it easier to save from regular income. A SIP in a mutual fund, by contrast, invests in market-linked instruments and can potentially offer higher returns over the long term, but with no guarantee and added risk — the right choice depends on whether you need capital safety or are comfortable with market-linked growth.
Related reading
Frequently asked questions
Is RD interest taxable?
Yes, interest earned on a recurring deposit is taxable at your income tax slab rate, similar to fixed deposit interest, and TDS may apply once interest crosses the prescribed threshold.
Can I withdraw an RD before maturity?
Most banks allow premature withdrawal of an RD, usually with a penalty on the interest rate, similar to breaking a fixed deposit early.
Is RD better than SIP?
RD offers a guaranteed, fixed return, while SIP in mutual funds is market-linked with no guaranteed return but historically higher long-term growth potential. RD suits capital safety goals; SIP suits long-term wealth building with some risk tolerance.