RD (Recurring Deposit) Calculator
Frequently Asked Questions
How is RD maturity value calculated?
Each month's deposit earns interest from the month it is made until maturity, with interest compounding on the running balance. This calculator uses monthly compounding as a close approximation of standard bank RD calculations.
Does RD interest compound monthly or quarterly?
Most Indian banks compound RD interest quarterly. This calculator uses monthly compounding as a simpler, very close approximation — actual maturity value may differ by a small amount from your bank's exact figure.
Is RD interest taxable?
Yes. RD interest is fully taxable as 'Income from Other Sources' at your slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
Is RD better than SIP?
RD offers fixed, guaranteed returns with no market risk, making it suitable for short-term, capital-safe goals. SIP in equity mutual funds carries market risk but has historically offered higher long-term returns. Compare both using this site's RD and SIP calculators.