Recurring Deposit (RD) Calculator
Calculate bank RD maturity proceeds with Indian banking quarterly compounding standards.
After 5 years of monthly deposits of ₹5,000
RD Capital Invested vs Interest Accrued
Compounding trajectory over time
Year-by-Year RD Progression
Detailed breakdown for each calendar year
| Year | Deposited Capital | Interest Accrued | Cumulative Balance |
|---|---|---|---|
| Year 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| Year 2 | ₹1,20,000 | ₹9,099 | ₹1,29,099 |
| Year 3 | ₹1,80,000 | ₹20,686 | ₹2,00,686 |
| Year 4 | ₹2,40,000 | ₹37,418 | ₹2,77,418 |
| Year 5 | ₹3,00,000 | ₹59,664 | ₹3,59,664 |
How this is Calculated: Recurring Deposit Maturity
Mathematical Formula
Variable Definitions
Worked Example Walkthrough
Scenario: ₹5,000 monthly bank RD for 5 years (60 months) at 7.00% p.a. quarterly compounded.
Calculation: Monthly deposits compound quarterly based on standard Indian banking maturity schedule.
Result: Invested: ₹3,00,000 | Total Interest: ₹60,542 | Total Maturity Value: ₹3,60,542
Assumptions & Methodology
- Quarterly compounding as per standard Indian Banks Association guidelines.
- Installment deposited on the first of each month.
About this Calculation Model
The Recurring Deposit (RD) Calculator computes the total maturity value and cumulative interest accrued when depositing a fixed monthly installment into a bank RD. It implements the standard Indian Banks Association (IBA) quarterly compounding algorithm, ensuring accurate valuation for each consecutive monthly deposit.
How to Choose Your Calculator Inputs
1Monthly Deposit Amount
The fixed savings amount debited automatically from your bank account each month.
2Annual Interest Rate (%)
The contracted annual interest rate, locked for the entire tenure of the deposit.
3Tenure (Years)
The commitment duration, typically ranging from 6 months up to 10 years.
Interpreting Your Projections
Review the total deposited capital versus total interest earned. RD interest rates are locked upfront, offering certainty of returns without market volatility risks.
Important Statutory & Practical Considerations
- TDS & Taxation: RD interest is fully taxable under "Income from Other Sources" at your slab rate, subject to Section 194A TDS rules.
- Premature Closure Penalties: Missing consecutive installments or closing the RD early attracts penalty charges from most commercial banks.
- Compounding Conventions: Calculations implement standard Indian Banks Association (IBA) quarterly compounding; co-operative or regional banks may apply varying day-count conventions.
Frequently Asked Questions
How is RD interest compounded in Indian banks?
RD interest is compounded quarterly. The first installment deposited in month 1 earns interest for the full tenure, while subsequent installments earn interest for their respective remaining periods until maturity.
What is the minimum tenure for a bank RD in India?
Most Indian commercial banks offer recurring deposits starting from a minimum tenure of 6 months up to a maximum of 120 months (10 years).
Is interest earned on a bank Recurring Deposit subject to TDS?
Yes. As per Section 194A of the Income Tax Act, banks deduct 10% TDS on cumulative term deposit interest (including RD and FD) if total interest across all branches exceeds ₹40,000 per financial year for regular individuals (₹50,000 for senior citizens).
What happens if I miss a monthly installment in a Recurring Deposit?
Banks charge a nominal default penalty (typically ₹1.50 to ₹2.00 per ₹100 of the installment) for missed RD installments. If defaults persist for four or more consecutive months, banks reserve the right to prematurely close the RD account.
Related Financial Calculators
SIP Calculator
Calculate wealth growth and maturity value of your monthly Systematic Investment Plan.
Lump Sum Calculator
Forecast the compounded future value of a one-time lump sum mutual fund investment.
Loan EMI Calculator
Calculate monthly home, car, or personal loan EMIs, interest payable, and payoff schedules.
Commercial Partnership & Editorial Independence Notice
Finminto is a free, privacy-first financial utility. To sustain server infrastructure and continuous tool development without charging subscriptions or erecting paywalls, we may include links to licensed financial platforms, AMFI-registered mutual fund distributors, or banking partners.
- Zero Algorithmic Bias: Calculations, schedules, and mathematical formulas are strictly deterministic and never adjusted to favor any commercial partner.
- Zero Data Sharing: Your calculation inputs (loan amount, salary, investments) execute locally in your browser and are never passed to commercial partners.
- Sponsored Disclosure: Any outbound commercial affiliate link carries mandatory
rel="sponsored nofollow"tags in compliance with ASCI and search engine standards.