RD Calculator. Monthly savings.
₹5,000/month RD at 7.0% over 5 years (60 months) = approximately ₹3.59 lakh maturity. Total deposited: ₹3 lakh. Interest earned: ~₹59K. Indian bank RD rates in 2026: 6.5-7.5% (1-3 yr), 7.0-8.0% (5+ yr); senior citizens get +0.5%. Most banks compound RD quarterly.
RD Calculator
RD calculator FAQ.
What is a Recurring Deposit (RD)?▾
A Recurring Deposit is a banking product where you deposit a fixed amount every month for a chosen tenure (6 months to 10 years), earning compound interest at a pre-set rate. Unlike Fixed Deposits (single lump sum), RDs are designed for monthly savings. At maturity, you receive the total deposited amount plus accumulated interest. Most Indian banks compound RD interest quarterly.
How is RD interest calculated?▾
RD uses the formula M = R × [(1 + i)^n − 1] / (1 − (1 + i)^(−1/3)), where R is monthly deposit, i is the quarterly interest rate (annual ÷ 4), and n is the number of quarters. The math works out because each monthly deposit earns interest for a different period (the first deposit earns interest for the full tenure; the last deposit earns ~1 month). Our calculator handles this automatically.
Are RD rates same as FD rates?▾
Generally yes — most Indian banks offer the same rates for RDs and FDs of equivalent tenures. As of 2026, typical RD rates are 6.5-7.5% for 1-3 year tenures and 7.0-8.0% for 5+ year tenures, matching the FD rate card. Senior citizens get +0.5% premium. Some banks offer marginally lower RD rates (5-10 bps) compared to FDs of the same tenure due to administrative cost considerations.
RD vs SIP — which is better for monthly savings?▾
Different risk/return profiles. RD: guaranteed 6.5-7.5% return, capital protection, suitable for emergency funds and short-term goals (1-5 years), interest is taxable. SIP in equity mutual funds: 10-12% historical average return, market risk, suitable for long-term goals (10+ years), LTCG-taxed (better treatment). Most balanced savers do both — RD for stability + SIP for growth. RD is simpler to start (just visit your bank) while SIP requires KYC and a demat/MF account.
Can I prematurely close an RD?▾
Yes, but with a penalty. Most Indian banks impose a 1-2% interest rate reduction for premature RD closures — meaning you receive a lower effective rate than the originally promised rate. Some banks waive the penalty for closures after the first year. Post Office RDs allow premature closure after 3 years without penalty. Always check the specific penalty terms in your RD application before deciding to break it.