Banking & Savings
Recurring Deposit (RD) Calculator
Calculate recurring deposit maturity value, quarterly compound interest, total contributions, senior citizen preferential rates, and Section 194A TDS across Indian commercial banks.
Popular Bank & Post Office RD Tenures
Select a preconfigured term savings scheme or enter custom deposit parameters below:
Monthly Deposit Parameters
Min ₹100. Up to ₹1 Crore. Amount deposited every calendar month.
Base interest rate offered by the bank or India Post for the chosen tenure.
Min 6 months up to 120 months (10 years).
Depositor Age Category
Taxation & Section 194A TDS
Optional: Calculates your real effective post-tax return.
12 monthly deposits of ₹5,000.00
Month-by-Month Accumulation Schedule
Monthly deposit progression, interest accruals, and compounded account balance:
| Month | Monthly Deposit | Total Deposited | Interest Accrued | Cumulative Interest | Account Balance |
|---|---|---|---|---|---|
| Month 1 | ₹5,000.00 | ₹5,000.00 | +₹28.17 | ₹28.17 | ₹5,028.17 |
| Month 2 | ₹5,000.00 | ₹10,000.00 | +₹56.51 | ₹84.68 | ₹10,084.68 |
| Month 3 | ₹5,000.00 | ₹15,000.00 | +₹85.00 | ₹169.68 | ₹15,169.68 |
| Month 4 | ₹5,000.00 | ₹20,000.00 | +₹113.65 | ₹283.33 | ₹20,283.33 |
| Month 5 | ₹5,000.00 | ₹25,000.00 | +₹142.47 | ₹425.80 | ₹25,425.80 |
| Month 6 | ₹5,000.00 | ₹30,000.00 | +₹171.45 | ₹597.25 | ₹30,597.25 |
| Month 7 | ₹5,000.00 | ₹35,000.00 | +₹200.58 | ₹797.83 | ₹35,797.83 |
| Month 8 | ₹5,000.00 | ₹40,000.00 | +₹229.89 | ₹1,027.72 | ₹41,027.72 |
| Month 9 | ₹5,000.00 | ₹45,000.00 | +₹259.36 | ₹1,287.08 | ₹46,287.08 |
| Month 10 | ₹5,000.00 | ₹50,000.00 | +₹289.00 | ₹1,576.08 | ₹51,576.08 |
| Month 11 | ₹5,000.00 | ₹55,000.00 | +₹318.80 | ₹1,894.88 | ₹56,894.88 |
| Month 12 | ₹5,000.00 | ₹60,000.00 | +₹348.76 | ₹2,243.64 | ₹62,243.64 |
How Indian Bank Recurring Deposits Are Calculated
- Under Indian Banking Association (IBA) guidelines, scheduled banks calculate recurring deposit interest using quarterly compounding.
- Each monthly installment is treated as an independent term deposit compounding for the exact number of remaining months: M = sum_{k=1}^n P × (1 + r/400)^((n - k + 1)/3).
- Because earlier monthly deposits compound for a longer period than later ones, the effective return builds up steadily over the deposit term.
- Post Office 5-Year Recurring Deposit accounts also use quarterly compounding under the National Savings Scheme rules.
- Senior citizens (60+) receive an additional +0.50% p.a., while super seniors (80+) receive up to +0.75% across leading Indian banks.
- TDS under Section 194A applies to Recurring Deposits if total annual interest across all term deposits in the bank exceeds ₹40,000 (₹50,000 for seniors).
Frequently asked questions
How is interest calculated on a Recurring Deposit in India?
Indian banks calculate RD interest based on the Indian Banking Association (IBA) quarterly compounding formula. The first installment earns interest for the full tenure, while each subsequent installment earns interest for one less month.
What is the difference between a Fixed Deposit (FD) and a Recurring Deposit (RD)?
An FD involves investing a lump sum amount once for a fixed tenure, whereas an RD allows you to invest a fixed amount every month from your regular income, making it ideal for disciplined monthly savings without needing a large initial corpus.
Is TDS deducted on Recurring Deposit interest?
Yes. Finance Act 2015 brought Recurring Deposits under Section 194A TDS provisions. If your total annual interest from FDs and RDs in a bank exceeds ₹40,000 (₹50,000 for senior citizens), the bank will deduct 10% TDS unless Form 15G/15H is submitted.
Can I withdraw my RD prematurely?
Yes, most Indian banks allow premature closure of recurring deposits, but they typically levy a penalty of 0.5% to 1.0% on the applicable interest rate for the period the deposit actually remained with the bank.