RD Calculator – Recurring Deposit Calculator

RD interest is calculated using compound interest formula. Banks use quarterly compounding. Maturity = P × [(1 + r/n)^(nt) - 1] / (1 - (1 + r/n)^(-1/3)), where P is monthly deposit, r is annual rate, n is compounding frequency.

Minimum tenure is typically 6 months and maximum is 10 years. Common tenures are 1, 2, 3, and 5 years. Longer tenures may offer slightly higher interest rates. Some banks also offer flexible RDs with 3-month minimum.

Yes, premature withdrawal is allowed but attracts penalty (usually 1% reduction in applicable interest rate). The interest is recalculated at lower rate for the period held. Some banks may not allow partial withdrawal.

RD interest rates typically range from 5.5% to 7.5% for regular customers and 6% to 8% for senior citizens (2025). Small finance banks may offer up to 8.5%. Rates vary by bank and tenure.

Yes, RD interest is fully taxable as per your income tax slab. TDS at 10% is deducted if total interest across all deposits exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H if income is below taxable limit.

RD offers guaranteed returns with fixed interest rate (5-8%), while SIP invests in mutual funds with market-linked returns (10-15% historically). RD has zero risk but lower returns; SIP has higher risk and potential for higher returns.

Missing installments attracts penalty charges (₹1-2 per ₹100 of default amount). Continuous defaults for 3-6 months may lead to premature closure by the bank. Some banks offer grace period of 5-10 days for payment.

Yes, most banks offer loans up to 80-90% of the RD value. The interest rate on loan is typically 1-2% higher than RD rate. This helps maintain your savings while meeting urgent fund needs.

RD is better for those who want to save regularly from monthly income. FD is better if you have a lump sum to invest. RD builds discipline, while FD offers slightly higher effective returns due to full compounding from day one.