RD Calculator

What is a Recurring Deposit (RD)?

A Recurring Deposit is a type of term deposit offered by Indian banks which help people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to Fixed Deposits.

Benefits of opening an RD

Promotes a habit of regular savings.
Guaranteed returns on maturity.
Higher interest rates than a savings account.
Low entry point (start with as low as ₹500/month).

Example:

If you deposit ₹5,000 every month for 5 years at an interest rate of 7.0%, your total investment will be ₹3,00,000. At maturity, you will receive approximately ₹3,59,481.

FAQs

Is RD interest taxable?

Yes, interest earned on RD is taxable as per your income tax slab. TDS is deducted by the bank if the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

Can I partial withdraw from RD?

Most banks do not allow partial withdrawals from RD. You can either close the account prematurely (with a penalty) or take a loan/overdraft against the RD balance.

Investment Breakup