A recurring deposit (RD) maturity amount is computed with quarterly compounding on each monthly installment — installments deposited earlier earn more. The calculator below uses the standard formula M = R × [(1+r/4)4t − 1] / [1 − (1+r/4)−1/3]. Enter your monthly installment, annual rate and tenure to get the maturity, total invested and total interest. RD interest is fully taxable as income from other sources at your slab rate, with no Section 80C benefit.
RD Maturity Calculator
Enter a monthly installment, the bank's annual RD rate and the tenure in months. Results update instantly and flag when the interest is large enough for TDS to apply.
In an RD only the first installment earns interest for the full tenure; each later installment is invested for less time. So an RD earns less than a lump-sum FD of the same total amount at the same rate — the trade-off for disciplined monthly saving.
How the RD Calculator Works
Indian banks and the Post Office compound RD interest quarterly. Each monthly installment is treated as a separate deposit that compounds from its own deposit date to maturity, and the maturity values are summed. The closed-form used here is:
- M = maturity amount = R × [(1+r/4)4t − 1] / [1 − (1+r/4)−1/3]
- R = fixed monthly installment (₹)
- r = annual interest rate as a decimal (e.g. 7% = 0.07)
- t = tenure in years (months ÷ 12)
- Total invested = R × number of months; Total interest = M − Total invested
Because installments are added monthly but interest compounds quarterly, an RD maturity lands slightly above simple interest and below an equivalent lump-sum FD.
RD Interest Rates — Major Banks
| Bank | 1 Year | 2 Year | 3 Year | Senior Citizen |
|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.75% | +0.50% |
| HDFC Bank | 6.60% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.00% | 7.00% | +0.50% |
| PNB | 6.80% | 6.80% | 6.50% | +0.50% |
| Post Office RD (5 yr) | — | — | — | No extra |
Rates are indicative for FY 2025-26 and change with each bank's revision — confirm with your bank. Post Office RD has a fixed 5-year tenure. Senior citizens typically get an extra 0.25%–0.75%.
Worked example: a ₹5,000 monthly RD for 24 months at 7% p.a. gives roughly ₹1,29,000 maturity on ₹1,20,000 invested — about ₹9,000 interest, all taxable at your slab.
Tax & TDS on RD Interest
RD interest is fully taxable as income from other sources at your slab rate. There is no Section 80C deduction for RD deposits, and interest should be reported each year on accrual, not only at maturity.
| Item | Position | Detail |
|---|---|---|
| Taxability | Fully taxable | Income from other sources, at your slab rate |
| Section 80C | No | RD deposits do not qualify for 80C |
| TDS rate | 10% | 20% if PAN is not provided to the bank |
| TDS threshold | ₹40,000 | Per bank, all FD+RD+savings interest combined |
| Senior citizen limit | ₹50,000 | Higher TDS threshold for age 60+ |
| Avoid TDS | 15G / 15H | File if total income is below the taxable limit |
TDS is not the final tax — you pay tax on actual interest at your slab and claim the TDS as credit in your ITR.
Even though you receive the money only at maturity, RD interest accrues yearly and should be shown in each year's ITR. Cross-check the interest and any TDS against Form 26AS / AIS before filing to avoid a mismatch notice.
RD Calculator — Frequently Asked Questions
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