Recurring Deposit (RD) Calculator

A Recurring Deposit (RD) is a savings scheme that allows you to deposit a fixed sum of money monthly for a pre-determined period and earn interest at rates matching Fixed Deposits.

In India, bank Recurring Deposits compound interest quarterly. The calculator simulates this by applying compound interest rules to each monthly installment based on the remaining tenure.

No, once an RD is opened, the monthly deposit amount is locked in and cannot be increased or decreased during the tenure.

Yes, most banks provide a grace period of 5 to 10 days for monthly deposits. If you delay further, the bank may levy a small penalty (e.g. ₹1.50 per ₹100 per month) and reduce your maturity interest.

Under Indian tax laws, banks deduct TDS at 10% on RD interest if the total interest earned across all your deposits in the bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).

Yes, you can close your RD prematurely. Banks usually charge a penalty of 0.5% to 1.0% on the interest rate applicable for the period the deposit was held. Partial withdrawals are generally not allowed.

The minimum tenure for a bank Recurring Deposit is 6 months, and the maximum tenure is 10 years.

RDs offer 100% capital safety and fixed, guaranteed returns, making them ideal for short-term goals. SIPs in mutual funds are market-linked and carry risk, but offer significantly higher returns over the long term (above 5 years).

Yes, you can take a loan or overdraft of up to 90% of the accumulated RD value. The interest charged is typically 1% to 2% higher than the nominal RD interest rate.

Most Indian public and private sector banks allow you to start an RD with a minimum monthly contribution of ₹100 or ₹500.