RD Calculator
Recurring deposit maturity, computed instalment by instalment.
Enter the monthly instalment, rate and tenure. Each instalment is compounded for the time it actually stays in the account.
Why an RD earns less than an FD
The first instalment earns for the whole term; the last earns for a month. Deposit the same total as a lump-sum FD and the FD wins comfortably, because all of it works for the full period.
What an RD is good at
Building the habit and the corpus at the same time, without needing the money upfront. As a discipline tool it beats intending to save.
Tax
RD interest is taxable at slab rates and TDS applies once annual interest crosses the threshold, exactly as with an FD.
Frequently asked questions
What if I miss an instalment?
Most banks charge a small penalty and some shorten the effective term. Repeated defaults can lead to premature closure.
Can I withdraw an RD early?
Usually yes, with a rate penalty similar to an FD.