RD Details
Goal presets
Maturity Amount
after 24 months at 6.5% p.a.
Total Deposited
₹0
Interest Earned
₹0
Effective Yield (p.a.)
0%
Return on Deposits
0%
TDS Note
If annual interest exceeds ₹40,000 (₹50K for seniors), TDS at 10% is deducted. Submit Form 15G to avoid TDS.
Investment Breakdown
Total Deposited
₹0
87%
Interest Earned
₹0
13%
Month-by-Month Growth
Cumulative deposits and interest earned over tenure
Schedule
Cumulative deposits, interest and balance by quarter
| Period | Total Deposited | Interest Earned | Balance |
|---|
What is an RD?
A Recurring Deposit (RD) is a savings instrument where you deposit a fixed amount every month for a fixed tenure. At the end of the tenure, you receive the total deposited amount plus the accumulated interest — making it perfect for disciplined saving towards a goal.
RDs use quarterly compounding — interest is calculated every quarter on the outstanding balance and added to the corpus.
RD Maturity Formula (Indian Banks)
M = R × [(1 + i)^n − 1] / (1 − (1+i)^(−1/3))
Where i = rate/400 (quarterly), n = total quarters, R = monthly deposit
RD vs SIP vs FD
RD — Safe monthly savings
Fixed, guaranteed returns. No market risk. Good for short-term goals (1–5 years) like emergency fund, vacation, gadget purchase.
SIP — Market-linked monthly investing
Higher potential returns over 7+ years but with market volatility. Equity SIPs historically outperform RD significantly over long periods.
FD — One-time lump sum
Same safety as RD, but you invest a single lump sum upfront instead of monthly. An FD earns more than an RD on the same total money, because the whole amount earns interest from day one.
RD Example Calculations
Current RD Rates in India
* Indicative rates. Verify with your bank before opening.
RD vs FD — Same Money, Which Earns More?
Saving ₹10,000 a month for a year (₹1,20,000 total) at 7% works out differently depending on how you put the money in:
Money goes in gradually
Whole sum earns from day 1
If you already have the lump sum, an FD earns more. Choose an RD when you want to build the corpus from your monthly salary.
Key Features & Tips
- →Low entry — start from just ₹100/month; tenures run 6 months to 10 years.
- →Set an auto-debit from your savings account so you never miss an installment.
- →Loan against RD — borrow up to 80–90% of the balance without breaking it.
- →Senior citizens earn an extra 0.25–0.50% on the same RD.
- →No 80C benefit — RD interest is taxable; for tax saving use a 5-yr tax-saver FD or PPF.
Frequently Asked Questions
Common questions about Recurring Deposits