Calculate RD maturity value in India. Enter monthly deposit, interest rate and tenure to see maturity amount, total deposited and interest earned instantly.
Banks compound RD quarterly: every month's deposit is added, and at each quarter-end the balance grows by annual rate ÷ 4Maturity value = balance after the last quarterInterest earned = maturity value − total depositedRD vs FD which is better misunderstands the choice: same rate family, different cash flow. FD suits money already in hand, while RD suits salary-linked monthly saving. Banks compound RD quarterly, so 5,000 rupees a month at 7% for 5 years matures near 3.62 lakh from 3 lakh deposited.
On post office RD interest rate versus banks: post-office rates reset quarterly by the government on a fixed 5-year term, while banks set their own rates across flexible tenures, so compare live rate cards, then decide on tenure flexibility too.
Two cost warnings for RD premature withdrawal penalty searchers: early closure typically costs 0.5 to 1% plus lost compounding, and RD interest is fully taxable per slab with TDS beyond the threshold, unlike PPF's tax-free status.
Indian banks compound recurring deposits every quarter (4 times a year) on the outstanding balance, unlike PPF which compounds yearly.
Yes, most banks charge a premature-withdrawal penalty of around 0.5–1% on the applicable rate, and you lose the compounding benefit.
Yes. RD interest is fully taxable as per your income slab, and banks deduct TDS if the interest crosses the threshold in a financial year.
Post-office RD rates are set by the government every quarter for a fixed 5-year term, while banks set their own rates across flexible tenures. Compare the current rate cards before choosing.
You can start an RD with as little as ₹100 per month at the post office and most banks, with no upper limit on the deposit.
An FD invests a lump sum once at a fixed rate, while an RD builds the deposit through monthly instalments at the same rate family. Choose FD for money already in hand, RD for salary-linked saving.
Last updated: 14 Oct 2026, 00:13 IST