RD calculator
A recurring deposit lets you save a fixed amount every month at a fixed rate. Enter your monthly deposit to see what it matures to.
Rules for FY 2026-27 · Checked 24 October 2026
3.57 lakh after 5 years.
- You deposit ₹3,00,000 and earn ₹56,829 in interest.
- Interest is compounded every quarter, and taxed at your slab rate each year.
- Total deposits₹3,00,000
- Interest earned₹56,829
Year-by-year table
| Year | Deposited | Interest | Balance |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,210 | ₹62,210 |
| 2 | ₹1,20,000 | ₹8,694 | ₹1,28,694 |
| 3 | ₹1,80,000 | ₹19,746 | ₹1,99,746 |
| 4 | ₹2,40,000 | ₹35,679 | ₹2,75,679 |
| 5 | ₹3,00,000 | ₹56,829 | ₹3,56,829 |
How RD interest is calculated
Banks and the post office compound RD interest every quarter. Each monthly instalment earns interest from the month it is paid until maturity, so the first instalment earns the most and the last the least.
For example, ₹5,000 a month for 5 years at the post office rate of 6.7% matures at about ₹3,56,830: ₹3 lakh deposited and ₹56,830 of interest.
Post office RD rules
- Rate: 6.7% a year for October to December 2026, fixed for the whole term once you open the account.
- Term: 5 years, extendable by another 5.
- Minimum ₹100 a month, in multiples of ₹10, with no upper limit.
- A loan of up to 50% of the balance is allowed after 12 instalments.
- The account can be closed after 3 years, but then earns only the savings account rate.
Tax on RD interest
RD interest is added to your income and taxed at your slab rate. Banks deduct 10% TDS once your interest from them passes ₹50,000 in a year (₹1 lakh for senior citizens).
Frequently asked questions
Is RD better than SIP?
An RD gives a fixed, guaranteed return, which suits goals within 3 to 5 years. A SIP in equity funds has historically grown faster over longer periods but can fall in value along the way.
What happens if I miss an RD instalment?
Banks charge a small penalty and may close the account after several missed instalments. The post office charges ₹1 for every ₹100 of instalment per month of delay.
RD or FD: which pays more?
At the same rate an FD earns more, because the whole amount is invested from day one. An RD suits you if you save from your monthly income.
Sources: National Savings Institute (small savings rates), India Post