RD Calculator

A recurring deposit, or RD, lets you save a fixed amount every month for a set term, from six months to ten years, at a rate fixed when you open it. It suits people building a habit of saving or putting money aside for a known expense, such as a holiday or school fees.

This calculator follows the quarterly compounding method banks and India Post use, so its maturity figure matches your passbook. It's pre-filled with the current India Post 5-year RD rate, which you can change to your bank's. Alongside the maturity value it shows the total deposited, the interest and the balance at the end of each year.

Each monthly instalment earns interest from the month it's paid until maturity, compounded every quarter. The first instalment earns for the full tenure and the last for just one month. Adding them up gives the maturity value: M = Σ R × (1 + r ÷ 4)^(months left ÷ 3).

India Post's 5-year RD is a government small savings scheme whose rate is set every quarter. Bank RDs follow the same calculation at the bank's FD rate for that tenure. RD interest is taxable at your slab rate.