RD Calculator

What is a Recurring Deposit (RD) Calculator?

A Recurring Deposit (RD) calculator is an online utility that helps you determine the maturity amount of your RD investment. By entering the monthly installment amount, interest rate, and tenure, you can quickly find out how much your savings will grow. It's an essential tool for anyone looking to build a corpus through regular monthly savings.

How to Use Our RD Calculator

Enter the monthly investment amount you plan to deposit in the 'Monthly Investment' field.
Input the annual interest rate in the 'Expected Rate of Return (%)' field.
Specify the investment tenure in years in the 'Investment Period (Years)' field.
Click 'Calculate' to view the maturity amount, total investment, and interest earned.

Frequently Asked Questions (FAQs)

What is a Recurring Deposit (RD)?

A Recurring Deposit is a special kind of term deposit offered by Indian banks which help people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to Fixed Deposits.

How is the maturity amount of an RD calculated?

The maturity amount of an RD is calculated using the formula M = R[(1+i)^n-1]/(1-(1+i)^(-1/3)), where M is the maturity value, R is the monthly installment, n is the number of quarters, and i is the rate of interest. Our calculator simplifies this for you.

What is the difference between an FD and an RD?

In a Fixed Deposit (FD), you invest a lump sum amount at once for a fixed tenure. In a Recurring Deposit (RD), you invest a fixed amount every month for a chosen tenure. FDs are suitable for those with a lump sum to invest, while RDs are ideal for salaried individuals.

Is TDS applicable on RD interest?

Yes, Tax Deducted at Source (TDS) is applicable on the interest earned from Recurring Deposits if the total interest from all your RDs with a bank exceeds Rs. 40,000 in a financial year (Rs. 50,000 for senior citizens).

RD Inputs

Maturity Details