RD Calculator - Recurring Deposit Calculator Online
🏦 Current RD Rates (November 2025): Post Office 6.7% | SBI 4.5-6.5% | HDFC 5.5-6.5% | ICICI 5.5-6.6%
A Recurring Deposit Calculator is an indispensable financial tool that helps individuals calculate the maturity amount and interest earned through regular monthly deposits. Whether you're planning to invest in State Bank of India RD, Post Office RD, HDFC Bank, or ICICI Bank recurring deposit accounts, this calculator uses the compound interest formula to project accurate returns. With Post Office offering 6.7% interest and banks ranging from 4.5% to 7.0% as of November 2025, RD remains one of the best savings instruments for salaried individuals seeking disciplined wealth creation through monthly contributions.
Calculate Your RD Maturity Amount
Understanding Recurring Deposits in India
Recurring Deposits are a systematic savings scheme offered by banks and post offices that enables individuals to deposit a fixed amount every month for a predetermined period, earning compound interest on accumulated deposits. Unlike fixed deposits that require lump sum investment, RDs encourage regular savings habits, making them ideal for salaried individuals, students, and anyone with monthly income. The beauty of RD lies in its simplicity - deposit the same amount monthly, and watch it grow with guaranteed interest rates.
Introduced to promote savings culture among Indian citizens, RDs bridge the gap between savings accounts and fixed deposits. While savings accounts offer liquidity with lower interest (2.5-4%), and FDs require large upfront capital, RDs provide a middle path - disciplined monthly savings earning 4.5-7% interest rates. Post offices and banks across India offer RD accounts with tenures ranging from 6 months to 10 years, with Post Office RD having a fixed 5-year tenure at attractive 6.7% interest rate.
How RD Interest is Calculated
Recurring deposit interest calculation is more complex than FD because each monthly installment has a different investment period. The first month's deposit earns interest for the entire tenure, the second month's deposit for one month less, and so on. Banks and post offices use compound interest method, typically compounding quarterly, which means interest earned is added to the principal every three months, allowing you to earn interest on interest.
RD Maturity Calculation Formula
Simplified Formula (for quarterly compounding):
Where:
- M = Maturity Amount (Total value at maturity)
- P = Monthly deposit amount
- n = Compounding frequency per year (Quarterly = 4, Monthly = 12)
- r = Annual interest rate (in decimal, e.g., 6.7% = 0.067)
- t = Tenure in years
Example calculation: For ₹5,000 monthly deposit at 6.7% for 60 months (5 years) with quarterly compounding: Each deposit earns interest for varying durations. The calculation considers all 60 deposits individually. Total deposits = ₹5,000 × 60 = ₹3,00,000. Maturity amount ≈ ₹3,53,341. Interest earned ≈ ₹53,341.
Current RD Interest Rates - Banks & Post Office (November 2025)
Recurring deposit interest rates vary across financial institutions and are revised periodically based on RBI monetary policy and market liquidity conditions. Post Office RD rates are revised quarterly by the Government of India, while banks revise rates based on their ALCO (Asset Liability Committee) decisions. Here are the latest RD interest rates:
| Bank / Institution | Tenure Range | Interest Rate | Senior Citizen Rate |
|---|---|---|---|
| Post Office RD | 5 Years (Fixed) | 6.70% | 6.70% (Same) |
| State Bank of India (SBI) | 1 Year - 10 Years | 4.50% - 6.50% | 5.00% - 7.00% |
| HDFC Bank | 6 Months - 10 Years | 5.50% - 6.50% | 6.00% - 7.00% |
| ICICI Bank | 6 Months - 10 Years | 5.50% - 6.60% | 6.00% - 7.10% |
| Axis Bank | 6 Months - 10 Years | 5.75% - 7.00% | 6.25% - 7.50% |
| Punjab National Bank (PNB) | 1 Year - 10 Years | 5.25% - 6.50% | 5.75% - 7.00% |
Note: Interest rates are subject to change quarterly. Post Office RD rate of 6.7% is valid as of Q4 FY 2025-26 (Jan-Mar 2026). Senior citizen rates include additional 0.50% benefit offered by banks. Always verify current rates from official websites before opening RD account.
Post Office Recurring Deposit - Features and Benefits
Post Office RD is one of the most popular savings schemes in India, especially in tier-2 and tier-3 cities where post offices have extensive reach. Backed by the Government of India, Post Office RD offers unmatched safety and guaranteed returns. The current interest rate of 6.7% per annum (compounded quarterly) is higher than most bank RDs for equivalent tenure, making it attractive for risk-averse savers.
Key features of Post Office RD:
- Fixed 5-Year Tenure: Maturity period is exactly 5 years (60 months) from date of account opening
- Minimum Deposit ₹100: Start with just ₹100 per month, one of the lowest minimums available
- No Maximum Limit: Deposit any amount in multiples of ₹10 without upper cap
- Quarterly Compounding: Interest compounded every three months maximizes returns
- Government Guarantee: Complete capital safety backed by Government of India
- Advance Deposit Facility: Deposit 6 or 12 months in advance and get rebate
- Premature Withdrawal: Withdraw 50% after 1 year for emergencies
- Loan Facility: Avail loans against Post Office RD after 1 year
SBI RD Calculator - State Bank of India Recurring Deposit
State Bank of India, being the largest public sector bank, offers flexible RD schemes with tenures from 1 year to 10 years. SBI RD interest rates range from 4.50% for shorter tenures to 6.50% for longer durations, with senior citizens receiving an additional 0.50% interest. SBI allows minimum monthly deposit of ₹100 with no maximum limit, making it accessible to all income groups.
| SBI RD Tenure | General Citizens | Senior Citizens | Special Feature |
|---|---|---|---|
| 1 Year | 4.50% | 5.00% | Short-term liquidity |
| 2 Years | 5.50% | 6.00% | Moderate growth |
| 3 Years | 6.00% | 6.50% | Balanced tenure |
| 5 Years | 6.30% | 6.80% | Comparable to Post Office |
| 10 Years | 6.50% | 7.00% | Maximum interest rate |
SBI RD can be opened through net banking, mobile banking, or branch visit. Online opening takes just 5 minutes for existing SBI account holders. The bank auto-debits monthly installments from linked savings account, ensuring no missed deposits. SBI also offers RD loans up to 90% of accumulated deposits at interest rates 1-2% above RD rate.
Key Benefits of Recurring Deposit Accounts
- Disciplined Savings: Regular monthly deposits instill financial discipline and systematic savings habit from early age
- Low Entry Barrier: Start with just ₹100-500 per month, making it accessible to students, homemakers, and low-income groups
- Guaranteed Returns: Fixed interest rate ensures predictable returns without market volatility risk
- Flexible Tenure: Choose from 6 months to 10 years based on financial goals and liquidity needs
- Higher than Savings: Earn 4.5-7% versus 2.5-4% in savings accounts, significantly improving wealth accumulation
- Goal-Based Saving: Ideal for specific goals like buying vehicle, marriage, education, or vacation
- Auto-Debit Facility: Banks auto-debit from savings account, preventing missed deposits
- Loan Against RD: Get loans up to 90% of accumulated value at just 1-2% above RD rate
- Nomination Facility: Nominate beneficiaries for smooth wealth transfer to family
- Premature Withdrawal: Access funds after minimum tenure with lower penalty than FDs
RD vs FD vs Savings Account - Detailed Comparison
Understanding differences between RD, FD, and Savings helps choose the right savings instrument based on your financial situation and goals:
| Feature | Recurring Deposit | Fixed Deposit | Savings Account |
|---|---|---|---|
| Investment Type | Monthly installments | Lump sum one-time | Flexible anytime |
| Interest Rate | 4.5-7% (similar to FD) | 5-8% (varies by tenure) | 2.5-4% (lowest) |
| Minimum Amount | ₹100-500/month | ₹1,000-5,000 lump sum | ₹0-10,000 |
| Tenure | 6 months - 10 years | 7 days - 10 years | No fixed tenure |
| Liquidity | Low (penalty on premature) | Low (penalty on premature) | Very High (instant) |
| Ideal For | Salaried, monthly savers | Lump sum investors | Emergency funds, daily use |
| Compounding | Quarterly (usually) | Quarterly/Monthly | Half-yearly/Quarterly |
| Financial Discipline | High (enforced monthly) | Moderate (one-time) | Low (flexible) |
When to choose RD: Salaried individuals wanting systematic savings, parents saving for children's education/marriage, individuals without lump sum but regular monthly surplus.
When to choose FD: Have lump sum from bonus/inheritance, need higher interest than savings, want predictable returns.
When to choose Savings: Emergency fund, daily transactions, need instant liquidity.
How to Open a Recurring Deposit Account
Opening an RD account is simple and can be done online or offline. For bank RDs, existing customers can open accounts through net banking or mobile banking apps in just 5 minutes by selecting deposit amount, tenure, and providing nomination details. The bank auto-debits monthly installments from your linked savings account on a fixed date.
Documents required for new RD account:
- Identity Proof: Aadhaar card, PAN card, Passport, Voter ID
- Address Proof: Aadhaar, Utility bill, Passport, Bank statement
- Passport-size photographs (2 copies)
- Account opening form duly filled and signed
- Initial deposit (first month's installment)
- Nomination form for beneficiary designation
For Post Office RD, visit your nearest post office with documents and initial deposit. Post office staff will guide you through the process. You'll receive a passbook that needs to be updated with monthly deposits. Post Office also allows RD opening for minors, helping parents start savings habits early.
Pro Tip: Open multiple RDs with staggered maturity dates to create regular cash flow. For example, open one RD each year with 5-year tenure. After 5 years, one RD matures every year, providing annual liquidity while all earn higher long-term rates. This RD laddering strategy balances growth and liquidity needs.
Penalties and Premature Withdrawal Rules
While RDs are meant for full tenure, banks and post offices allow premature withdrawal with certain conditions. Understanding penalty structures helps make informed decisions about early closure:
Post Office RD Premature Withdrawal:
- Account must be active for minimum 1 year before withdrawal
- Only 50% of accumulated balance can be withdrawn
- Remaining balance continues to earn interest until maturity
- No penalty for 50% withdrawal after 1 year
- Complete account closure applies interest at savings account rate (4%)
Bank RD Premature Withdrawal:
- Minimum 3-6 months tenure required before premature closure
- Banks levy penalty of 1% on applicable interest rate
- If closed in 1 year, get interest for shorter tenure minus 1% penalty
- Some banks allow partial withdrawal after 6-12 months
- Penalty varies by bank - SBI: 1%, HDFC: 1%, ICICI: 1%
Missed Deposit Penalty: Post Office charges ₹1 per ₹100 of monthly installment for each missed deposit. Banks may charge ₹25-50 per missed deposit and can close the account if deposits are missed for 4-6 consecutive months. Always maintain sufficient balance in linked savings account for auto-debit.
Taxation on RD Interest
Understanding tax implications is crucial for accurate return calculations. Interest earned on recurring deposits is fully taxable as "Income from Other Sources" under the Income Tax Act. The interest is added to your annual income and taxed according to your income tax slab (0%, 5%, 10%, 15%, 20%, or 30%).
Banks deduct TDS (Tax Deducted at Source) at 10% if your total interest income from all RDs with that bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If PAN is not linked, TDS is deducted at 20%. You can submit Form 15G (below 60 years) or Form 15H (senior citizens) to avoid TDS if your total income is below taxable limit.
Post Office RD interest is also taxable, though Post Office doesn't deduct TDS. You must declare Post Office RD interest while filing income tax returns. Unlike PPF or NSC, RD investments don't qualify for Section 80C deduction, making them purely savings instruments without tax-saving benefits.
Common RD Mistakes to Avoid
Investors often make preventable errors that reduce RD returns or create financial issues. Missing monthly deposits due to insufficient savings account balance is the most common mistake - always maintain 2-3 months' RD amount as buffer. Not comparing rates across banks costs you 0.5-1% returns; Post Office RD at 6.7% often beats bank RDs for 5-year tenure.
Starting RD without clear financial goal leads to premature withdrawals with penalties. Define your purpose - vacation in 2 years, car down payment in 3 years, education fund in 5 years - and choose appropriate tenure. Some investors neglect nomination, creating legal complications for family after death. Always nominate beneficiaries while opening account.
Not utilizing auto-debit facility and manually depositing each month increases chances of missed payments. Set up auto-debit and ensure sufficient monthly balance. Opening multiple small RDs across banks makes tracking difficult - consolidate with one or two banks for better management. Finally, ignoring tax implications on interest leads to surprises during tax filing - factor in your tax slab while calculating post-tax returns.
Advanced RD Deposit Facility
Post Office offers a unique advance deposit facility allowing you to deposit 6 or 12 months' installments in advance and earn rebate, effectively increasing your returns. When you deposit 6 months in advance, you get ₹10 rebate for every ₹100 deposited. For 12 months advance, rebate increases to ₹40 per ₹100.
For example, if your monthly RD is ₹5,000 and you deposit 12 months (₹60,000) in advance, you get ₹24,000 rebate (₹40 × 600). This rebate is credited immediately, effectively boosting your principal. This facility helps if you have surplus funds and want to maximize returns while avoiding risk of missed deposits.
RD for Different Life Stages
For Students/Young Adults: Start small RD of ₹500-1,000 monthly to build savings discipline. Use for goals like laptop purchase, certification courses, or internship expenses. 1-2 year tenure provides quick gratification and reinforces savings habit.
For Young Professionals: Open multiple RDs with 2-5 year tenures for goals like car down payment, wedding, or emergency fund. Consider ₹5,000-10,000 monthly based on income. Stagger maturities for regular liquidity.
For Parents: Long-term RDs (5-10 years) of ₹10,000-20,000 monthly for children's education or marriage. Post Office 5-year RD at 6.7% or bank 10-year RD at 6.5-7% work well. Start early to accumulate substantial corpus through compounding.
For Retirees: Short-tenure RDs (1-3 years) provide regular maturity proceeds for periodic expenses. Senior citizen rates of 7-7.5% offer better returns than savings accounts. Keep multiple small RDs instead of one large RD for better liquidity management.