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Guide · Calculators & Tools

RD Calculator — Recurring Deposit Maturity

Work out the maturity amount, total interest and total invested on a recurring deposit for any monthly installment, rate and tenure — with quarterly compounding, the standard used by Indian banks and the Post Office.

Written by
TaxClue Editorial Desk
Updated
18 August 2026
Reading time
5 min
Questions
13 answered
  • Quarterly compounding
  • Interest taxable at slab
  • TDS above ₹40,000/yr
Quick Answer

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.

Try it

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.

Why RD returns are lower than an equal FD

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.

The formula

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.

FY 2025-26

RD Interest Rates — Major Banks

Bank1 Year2 Year3 YearSenior Citizen
SBI6.80%7.00%6.75%+0.50%
HDFC Bank6.60%7.00%7.00%+0.50%
ICICI Bank6.70%7.00%7.00%+0.50%
PNB6.80%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.

Income tax

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.

ItemPositionDetail
TaxabilityFully taxableIncome from other sources, at your slab rate
Section 80CNoRD deposits do not qualify for 80C
TDS rate10%20% if PAN is not provided to the bank
TDS threshold₹40,000Per bank, all FD+RD+savings interest combined
Senior citizen limit₹50,000Higher TDS threshold for age 60+
Avoid TDS15G / 15HFile 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.

Report RD interest every year

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.

Sources
  1. Income Tax Dept: incometax.gov.in
  2. TDS on interest: Section 194A, Income-tax Act 1961
  3. Form 15G / 15H — declaration to avoid TDS

Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.

People also ask

RD Calculator — Frequently Asked Questions

Short, direct answers to the 13 questions readers ask most on this topic.

For a recurring deposit with quarterly compounding (standard for Indian banks), each monthly installment earns compound interest from its deposit date to maturity. The formula is M = R × [(1+r/4)^(4t) − 1] / [1 − (1+r/4)^(−1/3)], where R is the monthly installment, r the annual rate and t the tenure in years. Banks in effect compute interest on each installment and sum the maturity values. The result is higher than simple interest but lower than an equivalent lump-sum FD.

In an FD the whole amount earns interest from day one. In an RD only the first installment earns interest for the full tenure; every later installment is invested for progressively less time. So for the same total money and rate, an RD earns less. RD suits monthly saving from salary; FD suits an existing lump sum.

Quarterly compounding, which is what most Indian banks and the Post Office use for recurring deposits. If your bank compounds differently, the maturity may differ by a small amount.

Bank RDs typically run from 6 months up to 10 years (this calculator accepts 3 to 120 months). Post Office RD has a fixed tenure of 5 years, extendable in blocks.

Yes. RD interest is fully taxable as income from other sources at your applicable slab rate — unlike PPF, which is tax-free. There is no Section 80C deduction for RD deposits. Report the interest in your ITR each year on an accrual basis, not only when you receive the maturity amount.

No. Recurring deposit contributions do not qualify for a Section 80C deduction. Only a 5-year tax-saving fixed deposit (not an RD) qualifies under 80C. RD interest is also fully taxable.

Add the accrued RD interest under "Income from Other Sources" for the year. Cross-check the figure and any TDS against your Form 26AS and AIS on the income tax portal, then claim the TDS as a credit against your total tax.

Banks deduct TDS at 10% if your total interest income from that bank (all FDs, RDs and savings combined) exceeds ₹40,000 in a financial year (₹50,000 for senior citizens aged 60+). TDS is 20% if PAN is not provided. TDS is not your final tax — you still pay tax at your slab and claim the TDS as credit.

If your total income is below the taxable limit, submit Form 15G (non-senior citizens) or Form 15H (senior citizens) to the bank at the start of the financial year. This tells the bank not to deduct TDS. If tax was already deducted, you can claim a refund by filing your ITR.

No. TDS at 10% is only an advance deduction. Your actual tax on the interest depends on your slab. You claim the deducted TDS as a credit in your ITR, then pay the balance or receive a refund.

Yes, most banks allow premature closure with a penalty — typically 0.5% to 1% off the applicable rate for the period held. Post Office RD does not allow premature closure before 3 years except in special cases. Some banks offer a loan of up to 90% of the RD balance as an alternative.

RD is better if you want to invest a fixed amount every month from salary. FD is better for a lump sum, since the full amount earns from day one and gives a slightly higher effective return. Rates are usually the same for both at the same bank and tenure, and both are taxed identically at slab rate with TDS above ₹40,000/year.

Yes. Most banks add roughly 0.25% to 0.75% (commonly 0.50%) to the regular RD rate for senior citizens aged 60+. Senior citizens also get a higher TDS threshold of ₹50,000 per bank.