Answers

RD Calculator answers

RD is a monthly deposit with a bank for a fixed tenure at a fixed rate. It suits salaried savers who want disciplined small savings with predictable returns.

PPF, EPF, fixed deposits and recurring deposits on this site follow Indian product rules, including quarterly compounding on FD and RD. You can display the same math in USD, GBP, EUR, AUD, CAD or INR. A US 401(k), UK pension or Australian super account is a different product, so do not treat the balance as a local retirement account.

A worked check

Investing 5,000 every month for 10 years at a 10% yearly assumption grows to about 1,032,760 if each deposit compounds monthly. You put in 600,000. The rest is growth on the assumption you typed, not a promised return. Fees, tax and a lower return reduce that figure.

01. What is a recurring deposit?

RD is a monthly deposit with a bank for a fixed tenure at a fixed rate. It suits salaried savers who want disciplined small savings with predictable returns.

Open the RD Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

02. How is RD maturity calculated?

Each monthly instalment earns interest for the remaining months. Banks compound quarterly on growing balances. Our RD calculator totals maturity value from your monthly amount, rate and tenure.

Open the RD Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

03. RD vs SIP in mutual fund: which is better?

RD gives fixed return with bank safety limits. SIP in funds can grow more over long periods but has market risk. Pick based on goal timeline and risk comfort.

Open the RD Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

04. Is RD interest taxable?

Yes, like FD interest, added to income and taxed per slab. TDS may apply if interest from the bank exceeds prescribed limits in a year.

Open the RD Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

05. Can I miss one RD instalment?

Banks allow limited defaults with penalty or reduced interest. Too many missed deposits can close the account. Set auto-debit from savings for consistency.

Open the RD Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

06. What tenure is common for RD?

6 months to 10 years depending on bank. Shorter RDs suit near-term goals; longer ones for planned expenses in 2 to 3 years.

Open the RD Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

07. Does this RD result match my passbook exactly?

Close, but bank rounding and tax deduction can differ slightly. Use for planning; confirm maturity on the bank receipt.

Open the RD Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

08. Is the RD calculator free to use?

Yes. No account or payment needed. Change monthly deposit and tenure anytime.

Open the RD Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

Keep going

These pages explain the arithmetic. They are not a loan approval, tax filing, insurance quote or investment recommendation.