India recurring deposits · Quarterly compounding · After-tax returns & TDS (FY 2026-27)
RD Calculator
Calculate your recurring-deposit maturity and interest with the correct quarterly compounding — and, unlike the bank calculators, exactly what you keep after TDS and tax.
RDs run 6 months to 10 years, usually in 3-month steps. Post-office RD is a fixed 5 years.
Maturity value
₹3,54,954
₹5,000/month for 5 years (60 months): you invest ₹3,00,000 and earn ₹54,954 in interest. The 6.5% rate compounds quarterly (effective 6.66% p.a.).
Invested
₹3L
Interest earned
₹55k
Maturity
₹3.55L
What you actually keep after tax
RD interest is taxed at your slab. At 30%, tax on your ₹54,954 interest is ₹16,486, leaving you ₹38,468 — a post-tax value of ₹3,38,468 and an effective 4.55% after-tax return.
Your interest of about ₹10,991/year is under the ₹50,000 TDS limit, so no TDS is deducted — but the interest is still taxable at your slab and must be declared.
Year-by-year growth
| Year | Invested | Interest so far | Balance |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,143 | ₹62,143 |
| 2 | ₹1,20,000 | ₹8,425 | ₹1,28,425 |
| 3 | ₹1,80,000 | ₹19,122 | ₹1,99,122 |
| 4 | ₹2,40,000 | ₹34,527 | ₹2,74,527 |
| 5 | ₹3,00,000 | ₹54,954 | ₹3,54,954 |
RD maturity uses compound interest compounded quarterly — the Indian bank standard — on each monthly instalment: M = P × x × (xn − 1) / (x − 1), where x = (1 + r/400)1/3, n is the number of months and P is the monthly deposit. Banks credit interest quarterly and round differently, so an individual bank's figure can differ by a few rupees. RD interest is fully taxable at your income-tax slab as "income from other sources"; banks deduct 10% TDS once your combined FD + RD interest with them crosses ₹50,000 a year (₹1,00,000 for senior citizens), 20% without PAN — TDS is only an advance against your final tax. Rates and senior premiums vary by bank; confirm the exact rate with your bank. General information, not financial advice.
How a recurring deposit actually grows
A recurring deposit (RD) is a savings habit dressed as a deposit: you commit a fixed amount every month for a set tenure — anywhere from 6 months to 10 years — at a rate locked on the day you open it. Unlike a fixed deposit, where your whole lump sum earns interest from day one, each RD instalment only starts earning from the month you pay it. Your first deposit compounds for the full term; your last one earns interest for just a month. That's why an RD and an FD at the same rate don't return the same amount — and why a calculator that simply multiplies your total deposits by the rate gets the number wrong.
Indian banks compound RD interest quarterly, exactly like FDs. The correct maturity formula is therefore M = P × x × (xn − 1) / (x − 1), where P is your monthly deposit, n is the number of months, and x = (1 + r/400)1/3is the monthly growth factor implied by the quarterly rate. This is the same formula the banks and NISM use; it's just rarely shown. Because the interest compounds, your headline 6.5% works out to an effective 6.66% a year on the money that's invested.
The number the bank calculators leave out: after-tax return
Every bank's RD calculator shows a big gross maturity figure and stops there — most even print "does not include TDS" in the fine print. But RD interest is fully taxable at your income-tax slab, so a headline 6.5% RD is really earning a 30%-slab saver about 4.55% after tax. That's the number that decides whether an RD beats inflation, and it's why RDs work best for short-term goals and emergency buffers rather than long-term wealth. This calculator puts the post-tax return right next to the gross one — pick your slab and watch the "what you actually keep" line update.
TDS on RD interest — yes, it applies
A common myth is that recurring deposits are TDS-free. They were until 2015 — but since June 2015, RD interest has been treated exactly like FD interest. Banks deduct TDS at 10% once your combined FD and RD interest with that bank crosses ₹50,000 in a financial year — ₹1,00,000 for senior citizens, after Budget 2025 raised these limits. Without a PAN on file, the rate jumps to 20%. Remember two things: TDS is notan extra tax (it's an advance you adjust against your final bill), and "no TDS" does not mean tax-free — you still owe slab tax on every rupee. If your total income is below the taxable threshold, file Form 15G (or 15H for seniors) at the start of the year so nothing is withheld.
RD vs FD vs SIP — where an RD fits
Choose an RD when you want guaranteed, disciplined monthly saving — the money is safe (insured up to ₹5 lakh per bank by DICGC), the return is fixed, and the standing instruction forces the habit. Choose an FD instead if you already have a lump sum, since it earns from day one. And if your goal is years away and you can stomach ups and downs, a SIPin mutual funds has historically beaten deposit returns over the long run — though without the guarantee. An RD is the right tool for a near-term target you can't risk: a deposit for a flat, a wedding fund, next year's school fees.
Getting the best from your RD
Three levers move your maturity: the rate, the tenure and your tax slab. Small finance banks usually post the highest RD rates, and senior citizens get roughly 0.5% extra almost everywhere — both worth checking before you open one. Longer tenures compound more quarters, so a 5-year RD earns proportionally more than a 1-year one at the same rate. And because the interest is taxed at your slab, lower-bracket savers keep far more of it — for a 30%-slab investor an RD's real return after tax and inflation is often near zero, which is exactly when a tax-free option like PPF or a long-horizon SIP deserves a look. Model your own rate, tenure and slab above before you commit.
Worked example: ₹5,000 a month at 6.5% for 5 years
The growth. Deposit ₹5,000 every month at 6.5% for 5 years (60 instalments), compounded quarterly. Using M = P × x × (xn − 1)/(x − 1) with x = (1 + 0.065/4)1/3, the maturity comes to about ₹3,54,954. You've put in ₹3,00,000 of your own money and earned roughly ₹54,954in interest — and that figure lines up with SBI's own calculator (≈₹3,54,957) to within a few rupees.
The tax reality.That ₹54,955 of interest is added to your income and taxed at your slab. For a 30%-slab saver that's about ₹16,486 in tax, leaving roughly ₹38,468 — a post-tax maturity near ₹3,38,468 and a real return closer to 4.55%, not 6.5%. Because the yearly interest (about ₹11,000) stays under the ₹50,000 limit, no TDS is deducted here — but the tax is still owed and must be declared.
The takeaway.The gross maturity the bank advertises and the amount you actually keep are very different once your slab is in the picture — 6.5% down to about 4.55% for a top-bracket saver. That gap is the single most useful thing to know before locking money into an RD, and it's exactly what this calculator surfaces. Change the monthly amount, rate, tenure or slab above and every number moves together.
Frequently asked questions
How is RD maturity amount calculated?
Banks compound recurring-deposit interest quarterly on each monthly instalment, so the formula is M = P × x × (xⁿ − 1) / (x − 1), where P is the monthly deposit, n is the number of months, and x = (1 + r/400)^(1/3) is the monthly growth factor for an annual rate r. Because each instalment only earns interest from the month you pay it, an RD's total return is a little lower than a lump-sum FD at the same rate. For example, ₹5,000 a month at 6.5% for 5 years matures to about ₹3,54,954 — roughly ₹54,954 of interest on ₹3,00,000 invested. The calculator above does this instantly and also shows what you keep after tax.
What is RD of ₹6,000 per month for 5 years?
At a typical 6.5% rate with quarterly compounding, a ₹6,000 monthly recurring deposit run for 5 years (60 instalments) matures to about ₹4,25,945. You deposit ₹3,60,000 in total and earn roughly ₹65,945 in interest. A senior citizen at about 7% would get closer to ₹4,31,600. Your exact figure depends on your bank's rate and the precise quarterly-crediting method, so enter your numbers above — and remember the interest is taxable at your slab, which the calculator also shows.
How much is ₹5,000 per month in RD for 5 years in SBI?
At a typical SBI 5-year RD rate of about 6.5%, ₹5,000 a month for 5 years matures to roughly ₹3,55,000 — you invest ₹3,00,000 and earn about ₹55,000 in interest, with interest compounded quarterly. Senior citizens, who usually get around 0.5% more, end up closer to ₹3,60,000. SBI revises its RD rates from time to time, so check the current rate and plug it into the calculator above for an exact figure. Since the yearly interest (about ₹11,000) stays under ₹50,000, no TDS is deducted, but the interest is still taxable at your slab.
Is RD interest taxable, and is there TDS on RD?
Yes — RD interest is fully taxable at your income-tax slab as 'income from other sources', and you must declare all of it even if no tax was withheld. Banks also deduct TDS at 10% once your combined FD and RD interest with that bank crosses ₹50,000 in a financial year (₹1,00,000 for senior citizens, after Budget 2025 raised the limits); without a PAN it's 20%. Recurring deposits have been covered by TDS since June 2015 — older articles that call RDs 'TDS-free' are out of date. TDS isn't an extra tax; it's an advance credited against your final bill. If your total income is below the taxable limit, file Form 15G (or 15H for seniors) so the bank doesn't withhold it.
Is RD or FD better?
They suit different situations. A fixed deposit (FD) takes a single lump sum and locks it for the tenure, so your whole amount earns interest from day one — best when you already have the money. A recurring deposit (RD) takes a fixed amount every month, so it's ideal for turning monthly savings into a disciplined habit; but because each instalment earns interest only from when it's paid, the overall return is a bit lower than an FD of the same rate and tenure. If you have a lump sum, an FD usually wins; if you're saving as you earn, an RD fits better. Both are taxed identically — at your slab.
Which bank is best for RD?
The 'best' RD is mostly about the rate, since the product is near-identical everywhere. Small finance banks typically offer the highest recurring-deposit rates — often around 0.5–1% above large public and private banks — followed by mid-sized private banks, with big PSU banks and the post office usually at the lower end. Senior citizens get roughly 0.5% extra almost everywhere. Two things matter beyond the rate: deposits up to ₹5 lakh per bank are insured by DICGC (so very high small-finance-bank rates carry a little more risk above that limit), and the after-tax return is what you actually keep. Compare the post-tax figure in the calculator above rather than chasing the headline rate alone.
Related tools
FD Calculator
Have a lump sum instead of monthly savings? See what a fixed deposit earns at the same rate.
SIP Calculator
What the same monthly amount could grow to in mutual funds — after inflation and tax.
PPF Calculator
A tax-free alternative for long-term saving — maturity and 80C tax saved.
All Investing Calculators
RD, FD, SIP, PPF and more for India and beyond.