RD Calculator - Recurring Deposit Maturity Amount: Complete Guide
A Recurring Deposit (RD) Calculator helps you calculate the maturity amount and total interest on your recurring deposit investment. RD is a popular savings instrument in India that lets you save a fixed amount every month and earn interest on the accumulated corpus. BudgetDose's free RD calculator gives you accurate maturity amounts using the standard quarterly compounding formula followed by Indian banks.
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a special type of term deposit offered by banks and post offices in India where you deposit a fixed amount every month for a pre-determined period. At maturity, you receive the total deposited amount along with the interest earned.
RD is particularly suitable for salaried individuals who cannot make a large lumpsum investment but want to save regularly with guaranteed returns. RD interest rates are similar to FD rates and are determined at the time of opening the account.
RD vs SIP: Key Differences
Both RD and SIP involve monthly contributions, but they are fundamentally different:
For goals within 3 years, RD is safer. For goals beyond 5 years, SIP in equity mutual funds is superior.
Post Office RD vs Bank RD
The Post Office Recurring Deposit (PORD) is a government-backed RD scheme offering 6.7% interest (as of 2024) with sovereign guarantee. It is considered even safer than bank RDs.
Post Office RD key features:
- Tenure: 5 years (mandatory)
- Interest: 6.7% p.a. compounded quarterly
- Minimum: ₹100/month
- Safe: Backed by Government of India
Bank RDs typically offer higher rates (7–8%) but for flexible tenures (6 months to 10 years).
Pro Tips
- ✓Set up auto-debit for RD on your salary credit date to ensure you never miss an instalment
- ✓Compare bank RD rates with Small Finance Banks that offer 0.5–1% higher rates
- ✓For tax saving, Senior Citizens' RD with additional 0.5% rate is beneficial
- ✓Premature closure of RD attracts a 1–2% penalty — factor this into your planning
- ✓Link RD to a specific short-term goal like a vacation, gadget purchase, or emergency fund