RD Calculator

It is a type of savings account where the depositor makes regular fixed deposits over a specified period of time, usually ranging from 6 months to 10 years. The depositor is required to make a fixed deposit each month, and in return, the bank pays a higher interest rate on the deposit as compared to a regular savings account. The interest rate offered on recurring deposits is generally higher than that offered on savings accounts but lower than the interest rate offered on fixed deposits.

The lock-in period of an RD is usually the same as the deposit period, which can range from 6 months to 10 years.

The minimum investment of RDs varies from one bank to another.

The interest earned on a Recurring Deposit (RD) is taxable. The rate of tax depends on the individual's tax slab, and the interest earned is added to the individual's total taxable income. Additionally, TDS (Tax Deducted at Source) is applicable on RD interest if the interest earned in a financial year is more than INR 40,000 for an individual or INR 50,000 for a Hindu Undivided Family (HUF). In such cases, TDS will be deducted at the rate of 10% before crediting the interest to the account.

This calculator is very intuitive as it only takes the amount you are investing, the tenure and interest rate and can give you the earnings at the time of maturity and also year on year growth via a graph.

Breaking of RD is withdrawing the deposit before maturity. This is not advisable as it leads to loss of interest and a penalty will be imposed. The penalty rate varies from partner to partner. Please read all documents carefully before investing.