RD Calculator (Recurring Deposit)
Maturity, interest and TDS for monthly bank and Post Office recurring deposits.
Value at the end of each tax year
Tax year by tax year
How each instalment grows
How this was calculated
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the RD Calculator (Recurring Deposit)
A recurring deposit (RD) takes the same amount every month and pays it back with interest at the end of the term. Enter the monthly instalment, the rate and the tenure to see the maturity amount, the interest, the value each instalment grows to and the interest that builds up in every tax year.
The calculator uses bank-style quarterly compounding: each instalment compounds at the quarterly rate for the time it stays in the deposit. Choose Post Office RD for the 5-year National Savings Recurring Deposit — the formula reproduces the official Post Office maturity tables to the paisa. A TDS estimate shows whether tax will be deducted at source in each year.
How to use it
- Choose Bank RD or Post Office RD.
- Enter the monthly instalment and the interest rate. For a bank RD, also enter the tenure in months (the Post Office RD is always 60 months).
- Pick the month of your first instalment, so interest can be split by tax year.
- Tick Senior citizen if it applies and enter your bank’s extra rate; open TDS options to add other interest from the same bank.
- Read the maturity amount and the year-wise and instalment-wise tables, then copy the summary or download the table as CSV.
Examples
Maturity amount ₹71,366 · deposited ₹60,000 · interest ₹11,366
Maturity amount ₹62,311 · interest ₹2,311
The first instalment compounds for 4 quarters (5,000 × 1.0175^4), the last for one month (5,000 × 1.0175^(1/3)).
Maturity amount ₹1,29,099 · interest ₹9,099
How RD interest is calculated
Each instalment earns interest compounded every quarter for as long as it stays in the deposit. An instalment that stays j months grows by (1 + r ÷ 400)^(j ÷ 3), so the first instalment of a 12-month RD compounds for four full quarters and the last for one month. Adding up all n instalments of R gives:
M = R × [(1 + i)^(n/3) − 1] ÷ [1 − (1 + i)^(−1/3)], where i = r ÷ 400
This is exactly how the Post Office values its RD: the formula reproduces the maturity tables in the National Savings Recurring Deposit Scheme, 2019 — ₹6,969.67 for ₹100 a month at 5.8% and ₹7,231.38 at 7.2% after 60 deposits. The effective annual yield is (1 + r ÷ 400)^4 − 1: 6.87% at 6.7%.
Post Office RD rules
From the National Savings Recurring Deposit Scheme, 2019:
- The account matures after 60 monthly deposits (5 years). The minimum is ₹100 a month, in multiples of ₹10, with no upper limit.
- Instalments are due by the 15th of each month if the account was opened between the 1st and the 15th, otherwise by the last working day of the month.
- With up to four missed instalments you can extend the maturity by the same number of months and pay them later. After more than four defaults the account is discontinued unless revived within two months; reviving means paying the missed instalments plus a fee of ₹1 for every ₹100 for each month of default (para 6).
- Paying six or more instalments in advance earns a small rebate.
- The account can be closed early after 3 years, but then only the Post Office Savings Account rate is paid. After maturity it can be continued for up to 5 more years.
- The amount repaid is rounded to the nearest rupee.
The rate filled in is 6.7%, from the NSI rate table. The government reviews it every quarter, so confirm the current rate and edit it if it has changed. Your RD keeps the rate in force when you open it.
Bank RDs
Banks set their own rates, tenures and penalties. SBI, for example (sbi.bank.in), offers RDs of 12 to 120 months from ₹100 a month in multiples of ₹10, charges ₹1.50 for every ₹100 a month for late instalments (₹2 for RDs longer than 5 years), closes the account if six consecutive instalments are missed, and pays 0.50% (deposits up to ₹5 lakh) or 1% below the applicable rate on premature closure. Check your own bank’s terms.
TDS on RD interest
RD interest is taxed like FD interest. Under section 393(1) of the Income-tax Act, 2025, a bank, co-operative bank or post office deducts TDS at 10% (20% without a PAN) once the interest it credits or pays you in a tax year is more than ₹50,000, or ₹1,00,000 for a senior citizen — counting all your deposits with that payer.
Banks add RD interest to the deposit as it is compounded, so this calculator counts the interest that builds up in each tax year. The Post Office RD pays interest only with the maturity amount, so the estimate puts all of it in the tax year the RD matures; ask your post office if you expect TDS. Either way, the interest is taxable at your slab rate when you file your return.
Limitations
- Assumes every instalment is paid on time and the rate stays the same for the whole term.
- Banks may compound differently (for example simple interest for part quarters); the maturity amount on your RD passbook is final.
- Late-payment penalties, advance-deposit rebates and premature closure are not calculated.
- The TDS estimate assumes the same “other interest” from the payer every year, and applies the Income-tax Act, 2025 rules (in force from Tax Year 2026-27) to every year shown. The maturity amount is shown before TDS.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
How is RD maturity value calculated?
Each monthly instalment compounds quarterly for the time it stays invested: an instalment kept for j months grows by (1 + r ÷ 400)^(j ÷ 3). The maturity value is the sum of all instalments’ values. ₹1,000 a month for 5 years at 6.7% becomes ₹71,366.
What is the Post Office RD interest rate?
6.7% a year, compounded quarterly, in the NSI rate table this calculator uses. The government reviews small-savings rates every quarter, and an RD keeps the rate in force on the day it is opened.
Is RD better than FD?
An RD suits regular monthly saving; an FD suits a lump sum. At the same rate, a lump sum in an FD earns more interest than the same total spread over months in an RD, because RD instalments are invested for less time on average.
Is TDS deducted on RD interest?
Yes, when the interest from that bank or post office crosses ₹50,000 in a tax year (₹1,00,000 for senior citizens). TDS is 10% of the interest, or 20% without a PAN. RD interest is taxable at your slab rate even if no TDS is deducted.
Can I close a Post Office RD early?
Yes, after 3 years from opening. Interest is then paid at the Post Office Savings Account rate, not the RD rate.