Recurring Deposit (RD) Calculator
Free Recurring Deposit (RD) calculator to find the maturity amount and interest earned on your monthly investment.
Understanding Recurring Deposits (RD)
What is a Recurring Deposit?
A Recurring Deposit (RD) is a special kind of term deposit offered by Indian banks which helps people with regular incomes to deposit a fixed amount every month into their RD account. It's an excellent tool for building saving discipline and achieving short-term goals, like planning a vacation, a down payment, or a big purchase.
How is RD Interest Calculated?
RD interest is typically compounded quarterly in India. This calculator uses a formula that assumes quarterly compounding to provide an accurate maturity value.
- Formula Used:
M = P * [((1 + i)^n - 1) / (1 - (1 + i)^(-1/3))] - M = Maturity Value
- P = Monthly Investment
- i = Quarterly Interest Rate (Annual Rate / 4 / 100)
- n = Tenure in Quarters (Months / 3)
Tax on RD Interest
Just like Fixed Deposits, the interest earned from an RD is taxable. It is added to your total income and taxed as per your income tax slab. If your total interest income from all deposits with a bank (including FDs and RDs) exceeds ₹40,000 in a financial year, the bank will deduct Tax at Source (TDS).
Start Saving for Your Goals
An RD is a safe and disciplined way to save for your short-term goals, like a vacation or a new gadget.