RD Calculator
Build Wealth
Month by Month
Calculate your Recurring Deposit maturity value with quarterly compounding. Compare RD vs SIP and find which builds more wealth.
RD Calculator
Monthly deposit, guaranteed returns, bank safety
| Year | Total Deposited | Interest Earned | Balance | Gain % |
|---|
RD Key Insights
Numbers every recurring deposit investor needs
RD Complete Guide
Everything you need to know about Recurring Deposits
What is an RD?
A Recurring Deposit (RD) is a special savings account where you deposit a fixed amount every month for a fixed period. At maturity, you receive the total deposited amount plus compound interest. It's like an EMI โ but for savings instead of loans.
RD Formula
Indian banks use quarterly compounding for RD interest calculation.
Each monthly deposit starts compounding from its deposit date.
RD vs FD vs SIP
- RD: Monthly deposit, guaranteed returns, fully taxable
- FD: Lumpsum, guaranteed returns, fully taxable
- SIP: Monthly investment, market returns (10โ15%), tax-efficient
- For wealth building (5yr+): SIP > RD significantly
- For capital safety: RD/FD guaranteed; SIP is market-linked
When RD Makes Sense
- Short-term goals (1โ3 years) with capital protection need
- Building emergency fund systematically each month
- Low-risk investors who need guaranteed returns
- Discipline tool: Auto-debit enforces monthly saving habit
- Better than letting money sit in savings account (3โ4%)
Set Goal & Tenure
Define what you're saving for and for how long
Compare Bank Rates
Small Finance Banks offer up to 9% for RD
Auto-Debit Setup
Link to salary account for automatic monthly deposit
Renew or Upgrade to SIP
After maturity, consider SIP for longer-term goals
RD Taxation
How RD interest is taxed and how to minimize it
Submit Form 15G/15H Early
If total income below taxable limit, submit at start of year to avoid 10% TDS deduction on RD interest
Spread RDs Across Banks
Each bank's โน40K TDS threshold applies separately. Multiple banks = less TDS likelihood per bank
Consider SIP for Goals >3 Years
For goals beyond 3 years, SIP in equity mutual funds is more tax-efficient. LTCG 12.5% beats slab rate every time
RD Pro Tips
Get more from your recurring deposits
RD for Safety, SIP for Wealth
Use RD for short-term goals (1โ3yr) and capital preservation. Switch to SIP for goals beyond 3 years where equity returns (10โ15%) will significantly outperform RD (7โ8%).
Stack Multiple RDs for Liquidity
Instead of one 5yr RD, open 5 different RDs with 1yr, 2yr, 3yr, 4yr, 5yr tenures. One matures every year, giving annual liquidity. Reinvest in higher-rate options each year.
Small Finance Banks for More Returns
Small Finance Banks (AU, Jana, ESAF) offer 8โ9% RD rates vs 7โ7.5% from big banks. They're RBI-regulated and DICGC-insured up to โน5L โ perfectly safe for amounts within the limit.
Enable Auto-Debit โ Never Miss a Month
Missing even one RD installment may attract penalties and break the compounding chain. Set ECS/NACH auto-debit from salary account on 5th or 10th of each month โ day after salary credit.
RD Interest is Taxed Every Year โ Not at Maturity
Many RD investors think tax is paid only at maturity. Wrong โ RD interest is taxable each year as it accrues. Factor this into your net return calculation. Actual post-tax return can be 20โ30% less.
Best For: Specific Short-Term Goals
RD is perfect for building a down payment, vacation fund, or gadget purchase in 1โ3 years. The mandatory monthly deposit creates savings discipline. Combine with a liquid fund for emergencies.
RD Goal Planner
How much to deposit monthly to reach your goal?
Frequently Asked Questions
All your recurring deposit questions answered
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