Plan RD Calculator

RD Calculator - Calculate Your Returns for Recurring Deposits

Use this Recurring Deposit(RD) calculator to find out Interest and Maturity you would earn through a Recurring Deposit offered by Banks and Post Office Also, find out the best and highest RD interest rates across banks.

Did you know that the returns on RDs are taxable and that most banks levy upto 2% on premature withdrawal of RDs? As a result, most people make between 3.5-5% returns on their RD.

RDs are just another form of FDs with monthly deposit to the account in place of a one time investment.

Put your bank RD to test on our RD calculator!







*Estimation is based on historical return of the funds and done to facilitate informed decision making for investors. Actual results may vary. Mutual Fund investments are subject to market risk. Please read the respective offer documents carefully before investing.
Bank Name Tenure (years) RD Rate
India Post (post office) 1 6.90%
India Post (post office) 5 7.30%
SBI (State Bank of India) 1 6.80%
SBI (State Bank of India) 5 6.85%
ICICI Bank 1 6.90%

Average yearly return of top performing debt mutual funds recommended by Scripbox

RD Calculator

Recurring Deposit (RD) is a savings option that helps save for the future. In a RD people can save a small amount regularly for a predetermined period and earn interest on those deposits. Once the deposit matures the lump sum and interest is paid back. Determining the amount one can earn through investing in a RD is easy as the interest rate is fixed throughout the tenure of the RD. It doesn’t change unlike some investment products.

Interest rate on RD vary from bank to bank. The interest rate lie in the range of 3.5-8.5% for different time periods. The interest rate for senior citizens RD account is slightly higher than the regular accounts. Most banks offer an additional rate of 0.25%-0.75% for senior citizens. The interest on RD is compounded quarterly. Any individual, HUF, corporate, company, NRI, government organization, minor above age of 10, and minor below age of 10 under a legal guardian can open a RD account.

Most banks also offer flexi RD. In this the investor can invest a flexible sum of money in each interval depending on his/her convenience. The bank allows the depositor to select a core amount which will the basic investment in each interval and the investor can invest in the multiples of core amount in each interval.


RD’s inculcate a regular habit of saving money.

The minimum amount to start a RD is as low as Rs 10. This can vary from bank to bank.

The minimum tenure of an RD is 6 months and can extend to 10 years.

RDs offer a higher rate of interest than a savings bank account. Also, RDs offer higher rates for senior citizens.

Pre mature withdrawals are not allowed for RDs. But in some cases banks do allow pre mature withdrawals at some penalty.

One can take a loan against an RD by using the deposit as a collateral and get 80-90% of the deposit as loan.

A RD can be funded regularly by giving standing instructions to the bank to automatically credit the RD account from their Savings or Current Bank account.


Investing in RDs will give a guaranteed return making it an attractive investment option. Apart from this it has the following benefits.

RD is a simple investment product making it easy for new investors to understand it. By investing in RDs one can inculcate a habit of investing and saving regularly.

RDs can be an investment product for any term – short, medium or long. The minimum tenure starts from 6 months and goes up till 10 years. Also, the minimum investment amount is usually Rs 10 for some banks. But mostly for public sector banks it is Rs 100 and for private banks it is usually Rs 500 - Rs 1000.

RDs are highly liquid. One can withdraw the amount from an RD anytime they want but they will be charged a small fees for the same by the bank.

One can take a loan against their RD deposit and get 80-90% of the deposit value as loan. RDs have a flexi option where one can invest varying amounts at each period (more than the minimum amount) based on their convenience.

Recurring Deposit Formula

Here's the formula to calculate the maturity value for a Recurring Deposit:

Recurring Deposit Formula.


M = Maturity value

R = Monthly installment

n = Number of quarters

i = Rate of interest/400


Interest earned on RDs is taxable. Amount of TDS depends on the tax slab the investor falls in.

For annual income less than Rs 2.5 lakhs the TDS of 10% is applicable if the interest earned exceeds Rs 10,000. One can claim a refund on the TDS paid by submitting form 15G to the income tax department.

For annual income within the range of Rs 2.5 lakhs and Rs 5 lakhs the TDS of 10% is applicable if the interest earned exceeds Rs 10,000.

For annual income within the range of Rs 5 lakhs and Rs 10 lakhs, if the will be liable to pay a tax of 10.3% as the bank will deduct only 10% TDS if the interest earned exceeds Rs 10,000.

For annual income within more than Rs 10 lakhs, if the person will be liable to pay a tax of 20.3% as the bank will deduct only 10% TDS if the interest earned exceeds Rs 10,000.

Scripbox’s RD calculator

Scripbox’s calculator is a handy tool for calculating Maturity Value. It just takes seconds to shows the how much would you maturity amount be. This RD calculator requires you to input certain variables to determine EMI value, which include:

Monthly Deposit Amount – This is the amount which you invest in your RD account every month. Minimum Deposit amount varies for every bank and can be as low as Rs 10. Enter the ‘Monthly Deposit Amount’ you wish to invest every month in the account.

Interest Rate – The amount of interest that you can earn depends on the amount you have deposited in RD account, interest rate offered by the bank and tenure of RD. Enter the ‘Interest Rate’ on which you would like to calculate the maturity value.

RD Term Year – It is the duration for which you plan to hold your money in RD. Generally, RD tenure varies between 6 months to 10 years. Enter ‘RD Term Year’ for your investment.

Use Scripbox’s RD Calculator to find how much corpus you would earn at the end of your investment period.

Below is an example, where an RD is taken for a term of 5 years, with Monthly Deposit Amount of Rs 10,000 at 7.5% interest rate. The maturity value of the investment is Rs 6,90,228 at the end of RD term. RD Calculator.

Similarly, you can try this calculator for varying combinations of Monthly Deposit Amount, RD Term Year and Interest Rate.

Factors to consider before opening RD Account

While recurring deposit is a safe investment option and return on investment is mostly guaranteed, its is advised to consider the following factors before investing in a recurring deposit account.

Interest Rates Offered: interest rate offered by banks varies from bank to bank over different term periods. The interest rate offered to a recurring account holder by various banks generally ranges from 3.5% to 8.5% p.a. Return rates vary according to the selected deposit tenure. The rates are usually the highest for medium - term deposits. The rates are usually slightly lower for long - term deposits as the holder of the deposit stands to gain a higher overall interest.

Term Period: Recurring Deposit term periods are divided into three categories:

  1. Short-Term Tenure: A tenure that lasts from 6 months to 1 year.
  2. Medium-Term Tenure: A tenure that lasts from more than 1 year to 5 years.
  3. Long-Term Tenure: A tenure that lasts from more than 5 years to 10 years.

The right way to invest in a recurring deposit account is by identifying the shortest term period plan that offers high rate on interest.

Facility of Premature Withdrawal:While choosing the right recurring deposit, investors should consider liquidity as it is one of the most important factor. RD comes with premature withdrawal facility, but it will require the investor to pay premature penalty. Therefore, while investing choose that charges a low fee on premature withdrawal and offers high rate of interest.

Eligibility Criteria for Recurring Deposit

  • Any individual.
  • Any minor over 10 years of age may open a recurring deposit account if he or she provides proof of his or her name.
  • Any minor who is below or equal to 10 years of age under the guardianship of natural or legal guardian.
  • Any corporate, company, proprietorship or commercial organization.
  • Any government organization.

Documents Required for Recurring Deposit

  • Bank application form
  • Passport size photographs
  • Identity proof
  • Address proof
  • KYC documents if the bank requests for it.

Recurring Deposits for NRI/NRE

NRIs can either invest in either NRO or NRE Recurring Deposit accounts.

  • NRE RD Accounts: An NRE is a non-resident external account that exempts the accrued from tax in India. You can also move this account back to the home country of the investor without any hassle. In this, monthly installments are credited to NRE account.
  • NRO RD Accounts: NRO is a non-resident ordinary account. Investments in deposit installments may come from NRE or NRO accounts for these accounts. NRO RDs interest is taxable at a rate of 30 %, plus the additional CESS. This can be repatriated, subject to certain pre requisites.

Frequently Asked Questions On Recurring Deposit

Where I can open Recurring Deposit Account?

You can open recurring deposit account in almost all banks including HDFC bank, SBI bank, ICICI bank etc. You don't need to open new account in order to start RD, go to your bank and ask them to open RD account.

Can tax be saved on recurring deposits?

Yes, tax can be saved on recurring deposits if the money is deposited for a medium-term or long-term tenure in the recurring deposit account.

Is interest earned on recurring deposit taxable?

Ans. Yes, the interest earned from a recurring deposit is taxable.

Is Tax Deduction at Source (TDS) applicable on the interest earned on Recurring Deposits?

Yes, TDS of 10% is applicable on the interest earned. If the interest earned on the recurring deposits exceeds Rs.10,000, the TDS will be deducted.

What is the minimum tenure for Recurring Deposit?

The minimum tenure for Recurring Deposit differs from bank to bank. For a minimum tenure of 6 months or 12 months, most banks offer RD schemes.

What is the minimum amount that can be deposited into a RD account?

Minimum Deposit amount varies for every bank and it can be as low as Rs.10.

Are there any extra benefits for senior citizens on Recurring deposit?

Yes, banks generally offer slightly higher rate of interests than the normal deposits. Usually, banks offer 0.25 percent to 0.75 percent more interest than normal RDs.

Can I redeem my Recurring Deposit before the original term?

Yes, you can withdraw your Recurring Deposit before the term is over. However, you have to bare the penalty that comes with premature withdrawals.

Can I add nominees in my Recurring Deposit account?

Yes, you can add nominees in your Recurring Deposit account.

How to withdraw the principal amount deposited before its maturity in a recurring deposit account?

A depositor should submit a request to the bank requesting the recurring deposit account's premature withdrawal. The interest is earned only for the tenure for which the money was held in the account.

Can I make partial withdrawals from my RD account?

Partial withdrawals are NOT allowed. Also, you cannot opt for periodic pay-outs of just the interest component.

What happened if I delay the monthly deposit payment?

A delay of even one day in your instalment payment, will either have interest penalty or cash penalty. Either ways, there will be an affect on your maturity amount. If you have more than 6 outstanding instalments, some banks reserve the right to close the RD account.