- You deposit
- ₹3,00,000
- Interest earned
- ₹59,664
- Worth in today’s money
- ₹2,68,762
Year-by-year breakdown
| After | Deposited | Interest so far | Value |
|---|
What is an RD calculator?
An RD (Recurring Deposit) calculator shows how much your monthly deposits will grow to by the end of the term. You enter the amount you plan to deposit each month, the interest rate, and the tenure, and it calculates your maturity amount and the interest you will earn. It works for both bank RDs and the Post Office RD.
How to use this calculator
- Choose Bank RD or Post Office RD.
- Enter your monthly deposit, or tap one of the quick amounts.
- Enter the interest rate. Post Office RD is preset to the current rate.
- For a bank RD, set the tenure in years and months. Post Office RD has a fixed 5-year term.
- For a bank RD, turn on Senior citizen if you are 60 or older.
How RD maturity is calculated
Banks and India Post compound RD interest every quarter. Each monthly instalment earns interest for the time it stays in the account, so your first deposit earns the most and your last deposit earns the least. The maturity amount is the total of all instalments with their interest:
M is the maturity amount, R is your monthly deposit, r is the yearly interest rate in percent, and k is the number of months each instalment stays invested, from the full tenure down to one month.
Example
- Monthly deposit
- ₹5,000
- Interest rate
- 7% a year
- Tenure
- 5 years
- You deposit
- ₹3,00,000
- Interest earned
- ₹59,664
- Maturity amount
- ₹3,59,664
The same ₹5,000 a month in a Post Office RD at 6.7% for 5 years grows to ₹3,56,830.
Bank RD vs Post Office RD
- Tenure. Bank RDs usually run from 6 months to 10 years. The Post Office RD has a fixed 5-year term, which can be extended.
- Interest rate. Bank rates vary by bank and tenure, and senior citizens often get more. The Post Office RD rate is set by the government every quarter and stays fixed for your whole term once you open the account.
- Minimum deposit. The Post Office RD starts at ₹100 a month. Bank minimums vary, often ₹100 to ₹1,000.
- Safety. The Post Office RD is backed by the Government of India. Bank RDs are insured by DICGC up to ₹5 lakh per depositor per bank.
- Loan and early closure. The Post Office RD allows a loan of up to 50% of the balance after 12 instalments, and early closure after 3 years at a lower rate. Banks allow early closure with a penalty.
Is RD interest taxable?
Yes. Interest from both bank and Post Office RDs is added to your income and taxed at your slab rate. Banks deduct TDS if your yearly interest crosses a set limit. If your total income is below the taxable limit, you can submit Form 15G, or Form 15H if you are a senior citizen.
Frequently asked questions
What is the current Post Office RD interest rate?
The Post Office 5-year RD rate is 6.7% a year for October to December 2026. The rate is reviewed every quarter, but the rate you open your account at stays fixed for the full 5 years.
Which is better, RD or FD?
An FD earns more on the same total amount because all your money earns interest from day one. An RD suits you if you want to save a fixed amount from your monthly income instead of investing a lump sum.
What happens if I miss an RD instalment?
Banks and the Post Office charge a small penalty for late instalments. Missing several instalments in a row can lead to the account being closed, so set up an auto-debit to stay on track.
Can I withdraw my RD before maturity?
Bank RDs usually allow early closure with a reduced interest rate. The Post Office RD can be closed early after 3 years, and you receive interest at the Post Office savings account rate.
Is RD better than SIP?
An RD gives guaranteed returns with no market risk, which suits short-term goals and cautious savers. A SIP in mutual funds can earn more over the long term but its returns are not guaranteed.
Is my money safe in an RD?
The Post Office RD is backed by the Government of India. Bank RDs are insured by DICGC up to ₹5 lakh per depositor per bank, including interest.
Disclaimer: This calculator and content are for information only and are not financial advice. Interest rates and rules change over time. Confirm the current rate and terms with your bank or post office before investing.
