RD Calculator (Recurring Deposit)

Estimate the maturity value of your recurring deposit investment.

Total Investment
Total Interest
Maturity Value

Understanding Recurring Deposits (RD)

What is a Recurring Deposit?

A Recurring Deposit (RD) is a special kind of term deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to Fixed Deposits.

How does an RD work?

You deposit a fixed monthly installment for a pre-defined period (e.g., 1 to 10 years). The bank pays interest, which is typically compounded quarterly, on your deposits. At the end of the tenure, you receive the total amount you invested plus the accumulated interest.

Frequently Asked Questions (FAQ)

If you miss an installment, most banks charge a small penalty fee. If you miss several consecutive installments, the bank may have the right to close the RD account. It's best to check the specific terms and conditions with your bank.

Yes, many banks offer loans against the balance in your RD account, typically up to 80-90% of the deposit value. This allows you to access liquidity without having to break the deposit and incur penalties.

Yes, just like with FDs, the interest earned on Recurring Deposits is taxable. If the total interest earned from all your deposits (including FDs and RDs) in a bank exceeds the specified limit in a financial year, the bank will deduct TDS.