RD Calculator
Calculate maturity amount for Recurring Deposit investments with fixed monthly deposits
Calculate RD Maturity Amount
Minimum ₹100, typically starts from ₹500
Typically ranges from 6 months to 10 years
Current RD rates typically range from 5% to 8% per annum
RD Investment Results
Effective Annual Return: 0.00%
Interest to Principal Ratio: 0.00%
Formula used: Interest = P × n × (n+1) × r / 2400
Interest compounding: Quarterly
Investment Analysis
Example Calculation
10-Year RD Investment Example
Monthly Deposit: ₹1,000
RD Term: 10 years (120 months)
Interest Rate: 8% per annum
Total Deposits: ₹1,000 × 120 = ₹1,20,000
Calculation
Interest = P × n × (n+1) × r / 2400
Interest = 1,000 × 120 × 121 × 8 / 2400
Interest = 1,16,16,000 / 2400 = ₹48,400
Maturity Amount = ₹1,20,000 + ₹48,400 = ₹1,68,400
RD Benefits
Risk-free investment with guaranteed returns
Flexible monthly deposit amounts
Builds disciplined savings habit
Auto-debit facility available
Loan facility against RD balance
Premature withdrawal allowed
Current RD Rates
RD Tips
Compare interest rates across banks before opening
Longer tenure typically offers better interest rates
Set up auto-debit to avoid missing payments
Interest is taxable - plan for TDS if applicable
Consider RD for short to medium-term goals
Understanding Recurring Deposits (RD)
What is a Recurring Deposit?
A Recurring Deposit (RD) is a term investment where you make regular monthly deposits and earn a fixed interest rate over a specific period. RDs typically have quarterly compounding and help build disciplined savings habits.
Key Features
- •Fixed monthly deposits for a predetermined period
- •Term ranges from 6 months to 10 years
- •Interest rates similar to Fixed Deposits
- •Minimum deposit typically ₹100-₹500 per month
RD Interest Formula
Interest = P × n × (n+1) × r / 2400
Maturity Amount = Total Deposits + Interest
- P: Monthly deposit amount
- n: Number of months
- r: Annual interest rate (%)
- 2400: Constant (12 months × 2 × 100)
Note: RD interest is calculated monthly and compounded quarterly. Interest earned is subject to TDS if it exceeds ₹40,000 per year.
Benefits of RD
- ✓Risk-free investment with guaranteed returns
- ✓Flexible deposit amounts and tenure
- ✓Builds systematic savings discipline
- ✓Higher interest than regular savings accounts
- ✓Auto-debit facility available
- ✓Loan facility against RD balance (up to 90%)
- ✓Premature withdrawal allowed with penalty
Limitations of RD
- ×Lower returns compared to market-linked investments
- ×Interest income is taxable
- ×Penalty for premature withdrawal
- ×No partial withdrawal facility
- ×Inflation may erode real returns
- ×Missed payments can affect interest calculation
RD vs Other Investment Options
| Investment | Returns | Risk | Liquidity | Tax Benefits |
|---|---|---|---|---|
| Recurring Deposit | 5-8% | Very Low | Medium | None |
| SIP (Mutual Funds) | 8-15% | Medium-High | High | ELSS has 80C |
| PPF | 7-8% | Very Low | Low | EEE Status |
| Fixed Deposit | 5-8% | Very Low | Medium | None |