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Calculate Recurring Deposit maturity, total interest, and effective return. Standard quarterly-compounding formula matches what SBI, HDFC, ICICI, Axis, and Post Office actually compute.
Typical: 12, 24, 36, 60 months
Discover more powerful tools designed for speed, precision, and modern workflows.
Compare RD with lumpsum FD over the same tenure.
Compare RD post-tax return vs PPF (EEE 7.1%).
RD vs equity SIP — see how much more you could earn.
Project lumpsum mutual fund returns vs RD.
See exact tax on RD interest under your slab.
Project monthly investing growth across rates.
Recurring Deposits use a specific quarterly-compounding formula that accounts for staggered monthly deposits: M = P × ((1+r/4)^(4t) − 1) / (1 − (1+r/4)^(-1/3)). Each monthly deposit you make earns interest only for the remaining tenure — your first deposit earns interest for the full tenure, your last deposit earns interest for just one month.
Indian banks all use this same formula, including SBI, HDFC, ICICI, Axis, Kotak, and Post Office. The interest rate may differ between banks but the math is identical. Senior citizens (60+) typically get 0.50% higher interest, similar to FDs.
Compared to investing the same monthly amount in a SIP at 12% return, RDs deliver about 50-60% less wealth over a 5-year tenure. The trade-off: RDs guarantee the maturity amount; SIPs depend on market performance.
RD wins when you need guaranteed maturity for short-term goals (1-3 years): a wedding next year, a planned vacation, an upcoming down payment. Capital safety matters more than maximising returns.
SIP in equity mutual funds wins for long-term goals (5+ years): retirement, child's college fund, financial independence. The compounding advantage of equity returns over debt rates becomes substantial over longer horizons. Historical Nifty 50 SIP CAGR (15+ years) is around 12-14% vs RD's 6-7%.
A balanced approach: RD for emergency fund and 1-3 year goals, SIP for long-term wealth, ELSS for tax-saving (3-year lock-in). RD interest is fully taxable; equity LTCG above ₹1.25L per year is taxed at only 12.5% — making SIP more tax-efficient too.
Mistake 1: Late deposit. Most banks charge a small penalty (₹1-1.50 per ₹100 per month) for missed deposits. Auto-debit mandate prevents this. Mistake 2: Premature closure. Withdrawing before maturity attracts a penalty and lower interest — only break an RD for genuine emergencies.
Mistake 3: Choosing RD when SIP is better. For 5+ year horizons with risk tolerance, SIP in a diversified equity index fund typically beats RD by ₹3-5 lakh on ₹5,000/month over 10 years. Mistake 4: Ignoring TDS. RD interest above ₹40K/year (₹50K senior) attracts 10% TDS — submit Form 15G/15H if your income is below the basic exemption.
Mistake 5: Picking the bank with the highest rate without checking penalty terms. A 0.25% higher rate that comes with stricter early-withdrawal terms is a worse deal if you might need to break the RD. Compare full T&C across SBI, HDFC, ICICI, Post Office before committing.