RD Calculator — Recurring Deposit Maturity
Bank recurring deposit maturity with quarterly compounding — the exact formula banks use, plus invested vs interest split.
Formula
Disclaimer: Assumes constant rates — real returns vary year to year and markets can fall. Educational math only, not investment advice.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need rd calculator results fast? Skip the spreadsheet and get a clear, defensible answer in one step — free, private and instant, recalculating live as you change any input.
About RD Calculator — Recurring Deposit Maturity
A recurring deposit is the savings habit instrument: a fixed amount auto-debited monthly, compounded QUARTERLY at the FD-grade rate locked on day one. The formula looks intimidating because each instalment earns for a different period — the (1+i)^(−1/3) term is how banking mathematics handles monthly deposits inside quarterly compounding. ₹5,000 a month at 6.8% for five years deposits ₹3 lakh and matures near ₹3.58 lakh. RD versus SIP is the honest comparison everyone eventually makes: the RD's return is guaranteed and known to the rupee on day one, while an equity SIP's is neither — but historically much higher over 5+ year horizons. The defensible split: RDs for SHORT, dated goals where the amount must exist on a known date (school fees, a wedding deposit, an emergency-fund builder), SIPs for long horizons where volatility has time to resolve. An RD is also the classic first instrument for building the auto-save habit before graduating to markets. Three fine-print items decide whether you keep the printed rate. Interest is fully taxable at your slab and banks deduct TDS once interest crosses ₹40,000 a year (₹50,000 for seniors) — the post-tax return at the 30% slab is ~4.8% on a 6.8% RD. Missing instalments draws a small penalty (typically ₹1–2 per ₹100 per month) and some banks cancel RDs after consecutive defaults. Premature closure re-prices the whole deposit at the rate for the period actually run, minus ~1% — an RD broken at year two of five earns the 2-year rate minus penalty, not 6.8%.
How to use RD Calculator — Recurring Deposit Maturity
- 1Enter Monthly deposit, Interest rate (% p.a.), Tenure (years) into the RD Calculator.
- 2The result is computed automatically using M = P × [(1+i)ⁿ − 1] ÷ [1 − (1+i)^(−1/3)] — i = rate ÷ 4 (quarterly compounding), n = quarters; the IBA formula every Indian bank uses — there is no button to press; it updates live as you type.
- 3Change any input to model a different scenario, then use “Copy result link” to share the exact numbers.
Why use RD Calculator — Recurring Deposit Maturity?
- ✓Computes rd calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter are never uploaded or stored
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
RD ka interest quarterly compound hota hai to monthly deposit ka hisaab kaise?+
Har instalment apne jama hone ki taareekh se quarter-end tak proportionate interest kamaati hai — formula ka (1+i)^(−1/3) wala denominator yahi adjust karta hai (ek mahina = quarter ka 1/3). Isliye RD ka effective return same rate ke FD se thoda kam dikhta hai: FD me poora paisa din 1 se compound hota hai, RD me aakhri instalment sirf kuch mahine kamaati hai. Formula bilkul wahi hai jo bank ki passbook me chhapta hai.
RD ya SIP — 5 saal ke liye kya behtar hai?+
Goal ki nature dekhiye, return ki race nahi. Paisa EXACT date par EXACT amount chahiye (admission fee, down payment) to RD — guarantee ki keemat hai kam return. 7+ saal ka horizon hai aur beech ki girawat seh sakte hain to equity SIP historically kaafi aage raha hai. 5 saal beech ka zone hai: conservative log RD/debt-fund, baaki hybrid. Dono calculators me apne numbers daal kar post-tax compare kijiye — RD ka 6.8% slab ke baad ~4.8% banta hai.
RD par TDS kab kat'ta hai?+
Jab saal bhar ka interest (us bank ki saari deposits milakar) ₹40,000 cross kare — seniors ke liye ₹50,000. TDS 10% kat'ta hai (PAN na ho to 20%). Dhyan rahe: TDS katna ya na katna TAXABILITY nahi badalta — RD interest hamesha aapke slab par taxable hai, ITR me 'income from other sources' me jaata hai. Income taxable limit se neeche ho to Form 15G/15H dekar TDS rukwa sakte hain.
Instalment miss ho jaaye ya RD todna pade to kya hota hai?+
Miss par chhota penalty (aam taur par ₹1–2 per ₹100 per month of delay) aur maturity thodi ghat'ti hai; lagaataar 4–6 defaults par bank RD band karke balance saving rate par daal sakta hai. Premature closure par poora deposit US avadhi ke rate par re-price hota hai jitni chali, minus ~1% penalty — 5-saal wali RD 2 saal me todi to 2-saal ka card rate minus 1% milega, original 6.8% nahi. Zaroorat ke liye RD ke against LOAN (90% tak) aksar todne se sasta padta hai.
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