How is RD maturity calculated?+
Each monthly instalment earns interest until the deposit matures. With quarterly compounding, instalment k is grown by (1 + R/400)^(4 × remaining months / 12), where R is the annual rate in percent. The calculator above sums every instalment's future value — the same method banks use for standard recurring deposits.
What extra rate do senior citizens get on RDs?+
Many banks offer about 0.50% p.a. extra for resident senior citizens. The calculator's senior-citizen toggle adds 0.50% for planning; post office and bank premiums can differ — confirm before opening.
What is the difference between bank RD and Post Office RD?+
Both require fixed monthly deposits for a chosen tenure. Post Office RD is a government small savings scheme with rates notified quarterly by the Ministry of Finance. Bank RD rates are set by each bank within RBI guidelines. Premature closure rules, minimum deposits and documentation differ — check the product leaflet before opening.
Is RD interest taxable?+
Yes. Interest on recurring deposits is added to your total income and taxed at your applicable slab rate. It is not tax-free like PPF. Use the optional tax-slab chips for a post-tax estimate. Banks may deduct TDS under Section 194A when aggregate interest from deposits with that bank crosses the notified annual threshold.
Does this calculator include tax or TDS?+
Gross maturity is always shown. Optional tax-slab chips estimate income tax on interest only. They do not simulate TDS deduction timing or Form 15G/15H. Your net return depends on total interest income and your tax return.
What are typical min and max RD tenures?+
Most banks allow RDs from about 6 months up to 10 years (a few start at 12 months). India Post RD tenures follow the notified scheme. The calculator models up to 10 years — match the tenure on your bank's rate card.
Can I withdraw an RD before maturity?+
Banks and India Post generally allow premature closure of RDs, but a penalty or reduced interest rate applies. Some institutions permit partial withdrawal only after a minimum number of instalments. Read the premature-withdrawal clause in your passbook or account opening form.
Can I take a loan against my RD?+
Many banks offer loans or overdraft facilities against the balance in an active RD, typically up to a percentage of the accumulated amount. Interest on the loan is separate from RD interest. Terms vary by bank and are not uniform across post office products.
What happens if I miss an RD instalment?+
Missing a monthly deposit can attract a penalty or account default rules depending on the bank or post office. Some banks allow a limited number of missed instalments if you pay a fee; repeated defaults may lead to account closure and lower interest on amounts already deposited.
Is RD better than FD?+
If you have a lump sum ready, an FD is usually simpler and can earn interest on the full amount from day one. If you want to save a fixed amount every month, an RD is more convenient. Compare both calculators with the same rate and horizon before choosing.
RD vs SIP — are they the same?+
No. An RD is a fixed-income deposit with a guaranteed rate for the booked tenure (subject to bank solvency and DICGC limits). A mutual fund SIP invests in market-linked units where returns are not guaranteed. RDs suit capital preservation; SIPs suit long-term growth with market risk.
What is the minimum amount for an RD?+
Minimum monthly instalments vary — many public-sector banks and India Post start around ₹100–₹500; some private banks start at ₹500 or ₹1,000. The maximum depends on the bank's product cap. Use the calculator's monthly field within your planned budget.
How often do RD interest rates change?+
Bank RD rates change when banks revise their deposit rate cards — often around RBI policy moves but not always in lockstep. Post Office RD rates are notified quarterly by the Department of Economic Affairs. Confirm the rate on the day you open the account.
RD calculator for ₹5,000 monthly for 5 years — maturity amount in India?+
Enter monthly instalment, tenure and the RD rate your bank quotes (senior rates differ). Compounding conventions vary by bank; treat maturity as approximate before tax/TDS.
Post Office RD vs bank RD calculator — which rate should I enter?+
Use the scheme’s current notified or bank-published rate and matching tenure. Post Office RD and bank RD have different rate cycles and rules — this tool does not fetch live rates automatically.