Recurring Deposit Calculator
What This Tool Does
This recurring deposit calculator estimates the maturity value of a bank RD, a savings scheme where you deposit a fixed amount every month, based on your monthly deposit, interest rate, and tenure.
You can also use this Shelf Life Calculator.
How It’s Calculated
RD interest compounds quarterly, even though deposits are made monthly:
M = P × [(1 + i)ⁿ − 1] ÷ [1 − (1 + i)^(−1/3)]
Where P is the monthly deposit, i is the quarterly rate (annual rate ÷ 400), and n is the number of quarters.
Worked example: ₹8,000 deposited monthly for 2 years (8 quarters) at 7% per annum.
- i = 7 ÷ 400 = 0.0175
- Applying the formula gives a maturity value of approximately ₹2,06,544
- Total deposited: 8,000 × 24 = ₹1,92,000
- Estimated interest earned: approximately ₹14,544
Edge Cases and Special Rules
- Rates vary significantly by bank: Unlike a government-run scheme with one fixed rate, each bank sets its own RD rates, which can differ meaningfully between SBI, HDFC, ICICI, PNB, and others.
- Rates also vary by tenure within the same bank: The highest rate isn’t always for the longest tenure — some banks offer their best rate on a specific odd-length tenure (like 400 days) rather than a round number of years.
- Senior citizens typically get a rate premium: Most banks add roughly 0.50% for senior citizen depositors, on top of the general rate.
- TDS applies above a threshold, inconsistently tracked: RD interest is subject to TDS once it crosses a set annual threshold, but implementation isn’t fully uniform across banks — most RD calculators don’t factor this in automatically.
- Premature withdrawal is usually allowed, with a penalty: Most banks permit breaking an RD early, typically at a reduced interest rate for the period held.
Bank RD vs. Post Office RD
These work on similar compounding principles but differ in a few important ways. A bank RD rate varies by the specific bank and tenure chosen, and most banks offer a senior citizen premium on top of the general rate. A Post Office RD, by contrast, has a single rate set by the government each quarter, applied uniformly to every depositor — with no senior citizen premium. If you’re comparing the two, don’t assume uniform rules apply across both; check each one’s current terms separately.
Who Uses This
- Salaried individuals building a disciplined monthly savings habit
- Investors comparing RD rates across different banks before opening an account
- Senior citizens seeking the additional rate premium most banks offer
- Anyone wanting a safe, predictable return without committing a lump sum upfront
RD vs. FD
These are both common bank deposit products, but structured differently. A Recurring Deposit (RD) involves regular monthly deposits that build up over the tenure, with interest calculated on each contribution separately. A Fixed Deposit (FD) is a one-time lump-sum deposit that earns interest on the full amount from day one. Since the deposit pattern differs, the maturity formula differs too, an RD can’t simply be calculated the same way as an FD with the same total amount.
FAQ
What is the formula for RD maturity?
A formula that compounds each month’s deposit quarterly over the number of quarters in the tenure, combining them into a total maturity value.
What are current SBI RD interest rates?
Roughly 6.50% to 7.10% per annum for general citizens depending on tenure, with senior citizens typically getting about 0.50% more, confirm the exact current rate for your chosen tenure with SBI directly.
Is RD interest the same across all banks?
No, each bank sets its own rates, which can vary meaningfully for the same tenure.
Do senior citizens get a better RD rate?
Yes, typically, most banks offer a premium of around 0.50% for senior citizens, unlike Post Office RD, which doesn’t.
Can I break my RD before maturity?
Generally yes, though most banks apply a reduced interest rate or penalty for premature withdrawal.
Try It Above
Enter your monthly deposit amount, interest rate, and tenure in the calculator above to get an instant maturity estimate. Figures are estimates only, confirm the exact current rate and terms with your specific bank before investing.