RD Calculator

What is a recurring deposit?

A recurring deposit (RD) lets you deposit a fixed amount every month at a guaranteed interest rate. It's ideal for building a habit of saving from monthly income towards a short-term goal, with the safety of a bank deposit. Each instalment earns interest for the remaining months, so early instalments grow the most.

RD vs SIP

An RD gives guaranteed, fixed returns like an FD; a mutual-fund SIP is market-linked with higher potential returns but volatility. Use an RD for safety and short-term goals, and a SIP for long-term wealth creation.

A note on tax

Like FDs, RD interest is taxable at your income-tax slab, which reduces the effective return.

Related tools

• FD Calculator — for a one-time deposit.
• SIP Calculator — the market-linked equivalent.

Frequently asked questions

How is RD maturity calculated?

Each monthly deposit earns interest for the months remaining until maturity. The total is the sum of all instalments plus the interest each has earned.

Is RD interest taxable?

Yes, recurring deposit interest is taxable at your income-tax slab rate, and TDS may apply.

Should I choose an RD or a SIP?

Choose an RD for guaranteed, safe returns on short-term goals; choose a SIP for higher long-term growth potential with market risk.