RD Calculator
Recurring Deposit — Maturity Amount with Quarterly Compounding
Quarterly
RD Details
Rs
%
12 Months
6 Months120 Months (10 Yrs)
Maturity Amount
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Total Deposited
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Interest Earned
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Monthly Deposit
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Rate p.a.
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Tenure
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Deposit vs Interest
RD interest is taxable as per your income tax slab. TDS at 10% if annual interest exceeds Rs 40,000 (Rs 50,000 for senior citizens). Submit Form 15G/15H to avoid TDS.
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a bank savings scheme where you deposit a fixed amount every month for a set tenure. At maturity you receive total deposits plus interest. Indian banks compound RD interest quarterly.
Frequently Asked Questions
How is RD interest calculated?▾
RD interest uses quarterly compounding. Each installment earns interest from deposit date to maturity. The effective yield is slightly higher than the stated rate due to quarterly compounding.
Is RD interest taxable?▾
Yes. RD interest is fully taxable per your slab. TDS at 10% if annual interest exceeds Rs 40,000 (Rs 50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if applicable.
What is the difference between RD and SIP?▾
RD is a bank product with guaranteed fixed returns. SIP invests in mutual funds with market-linked returns. RD suits short-term goals and risk-averse investors. SIP is better for long-term wealth creation.
Can I break an RD before maturity?▾
Yes, most banks allow premature closure with a penalty of 0.5-1% on the applicable rate. Some banks require a minimum holding period.