The instalment
What you pay in each month, and the rate your bank quotes.
Five thousand
The same amount every month, for the whole term.
The yearly rate on the bank's card. Senior citizens are usually offered about half a per cent more.
How long you pay in
A recurring deposit runs for a term you fix at the start.
From 6 months to 10 years, in steps of 6 months.
Your result
Fill in the fields to see what your deposit matures to.
What it matures to
₹3.6 Lakhs
after 5 years · 1.2 times what you put in
₹5,000 a month for 5 years comes to ₹3 Lakhs of your own money. At 7% the bank adds ₹59,664 of interest.
You put in ₹3 Lakhs over 5 years. The bank adds ₹59,664 of interest, so you get ₹3.6 Lakhs.
| Part | Amount |
|---|---|
| You put in | ₹3 Lakhs |
| Bank adds | ₹59,664 |
| You get | ₹3.6 Lakhs |
- Instalments
- 60of ₹5,000 each
- Rate with compounding
- 7.19% a year
How this is worked outShowHide
- Compounding
- on the cycle you pick
- Instalments
- paid on time, every month
- The rate
- fixed for the whole term
- Tax on the interest
- not deducted
Each instalment grows by (1 + r ÷ n) for every compounding period it has left, where r is the yearly rate and n the number of periods in a year, and the maturity value is all of them added up. A bank's figure can differ by a few rupees, because each bank rounds its own way. Interest is taxable at your slab rate, and TDS applies above ₹50,000 of interest in a year.
Illustrative only, not advice. Nothing you enter is stored.
How it builds upShowHide
Counted from the first instalment, not by the calendar. Read it by the year, or month by month.
| Year | Paid in so far | Interest this year | Worth at the end |
|---|---|---|---|
| Year 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| Year 2 | ₹1,20,000 | ₹6,788 | ₹1,29,099 |
| Year 3 | ₹1,80,000 | ₹11,587 | ₹2,00,686 |
| Year 4 | ₹2,40,000 | ₹16,732 | ₹2,77,418 |
| Year 5 | ₹3,00,000 | ₹22,246 | ₹3,59,664 |
Before you rely on these numbers
- This is an illustrative tool, not advice.
- Figures assume the rate stays fixed for the whole term, that every instalment is paid on time, and that the deposit is not closed early. A missed instalment usually carries a penalty, and closing early usually earns a lower rate.
- Interest is shown before tax and before any TDS your bank deducts.
- Your bank's figure may differ by a few rupees, from how it rounds each interest credit and counts the days.
- Nothing you type is sent anywhere. The calculation runs entirely in your browser and nothing is stored.
What is a recurring deposit?
A recurring deposit (RD) is a savings account with a bank or post office where you pay in the same amount every month for a term you choose, at an interest rate fixed on the day you open it. At the end of the term you get back everything you paid in, plus the interest it earned. It suits anyone who can set aside a steady amount each month but does not have a lump sum to put in a fixed deposit.
How to use the RD maturity calculator
- Enter the monthly deposit. Add the amount you will pay in each month, from ₹100 upwards.
- Set the interest rate. Use the yearly rate your bank quotes for the term you want (3% to 12%).
- Choose the term. Set the tenure from 6 months to 10 years, in steps of 6 months.
- Pick how interest is compounded. Quarterly is what most Indian banks and the post office use. Choose monthly, half-yearly or yearly if your bank says so.
You will see what the deposit matures to, how much of that you paid in yourself, how much the bank added as interest, and the rate it works out to once compounding is counted. A year-by-year table sits under the calculator.
How is RD maturity calculated?
Each monthly instalment is treated as its own small deposit. It earns interest, compounded on the cycle you pick, for the time it has left until the deposit matures. The first instalment earns for the whole term and the last one for a single month. The maturity value is all of them added together.
Maturity value = sum of every instalment × (1 + r ÷ n)^(n × t)
- r
- is the yearly interest rate (7% = 0.07)
- n
- is how many times a year interest is compounded (4 for quarterly)
- t
- is the time that instalment has left, in years
This is why the interest on an RD is lower than on a fixed deposit of the same total at the same rate: in an RD, most of your money is with the bank for only part of the term.
Worked example: ₹5,000 a month for 5 years at 7%, compounded quarterly, matures at ₹3,59,664. You pay in ₹3,00,000 over the 60 instalments and the bank adds ₹59,664 of interest. With compounding, 7% works out to 7.19% a year.
What can change the amount you get
The calculator assumes every instalment is paid on time and the deposit runs its full term. A late or missed instalment usually carries a small penalty, and closing the deposit early usually earns a lower rate than the one you were quoted. The interest is also taxable, so what you keep depends on your tax slab.
RD Maturity Calculator FAQs
RD Maturity Calculator
In a fixed deposit (opens in new tab) you put in one amount at the start and leave it. In a recurring deposit you pay in a fixed amount every month. Both pay a rate that is fixed on the day you open them. Because RD money goes in gradually, it earns less interest than the same total placed in an FD on day one: ₹60,000 in an FD at 7% earns about ₹4,311 in a year, while ₹5,000 a month in an RD earns about ₹2,311.
Choose the one your bank uses. Most Indian banks and the post office compound RD interest every quarter, which is why the calculator opens on quarterly. The more often interest is compounded, the slightly more you earn: ₹5,000 a month for 5 years at 7% matures at ₹3,59,664 with quarterly compounding and ₹3,60,053 with monthly.
Banks quote a yearly rate but add interest to the deposit every quarter. Each time interest is added, it starts earning interest too (opens in new tab), so your money grows a little faster than the quoted rate suggests. At 7% compounded quarterly, that works out to about 7.19% a year.
RD interest is added to your income and taxed at your slab rate. It is taxable each year as it's earned, even though you only receive it at maturity. The calculator shows interest before tax, so your take-home return will be lower if your income is taxable.
Banks deduct TDS, usually at 10%, when your total interest on deposits with that bank crosses ₹50,000 in a financial year, or ₹1 lakh for senior citizens. Without a PAN, the rate is higher. If your total income is below the taxable limit, you can submit Form 15G, or Form 15H if you're a senior citizen, to avoid TDS. Any TDS deducted counts towards your tax when you file your return.
Most banks charge a small penalty for each late instalment, and some close the deposit if several are missed in a row. The exact rule is in your bank's RD terms. The calculator assumes every instalment is paid on time.
Most banks let you close an RD early, but they usually pay a lower rate, often 0.5% to 1% less than the rate for the period the money was actually deposited. Post office RDs have their own rules on when early closure is allowed. The calculator assumes you keep the deposit for the full term.
Most banks offer senior citizens a higher rate, usually about half a percentage point more than the regular rate. Enter the rate your bank quotes for senior citizens to see the difference.
Deposits with banks in India are insured by the DICGC for up to ₹5 lakhs per depositor per bank, covering principal and interest together across all your deposits with that bank. Amounts above that aren't insured. Post office RDs are backed by the government.
They do different jobs. An RD pays a fixed rate and your money is not exposed to markets, which suits goals a few years away. A SIP (opens in new tab) in a mutual fund has no fixed return and can fall in value, but over long periods it has historically had a better chance of beating inflation (opens in new tab). Many people use an RD for short goals and a SIP for long ones.
Each bank rounds interest its own way and may count days slightly differently, so its maturity value can differ by a few rupees. The date you pay each instalment also matters. The calculator uses the standard formula with quarterly compounding, which is how most Indian banks work.
No. Nothing you enter in this RD maturity calculator is stored.
Still have questions? Write to us at help@time.money
You May Also Like
SIP Calculator
See what a monthly SIP grows to over time, how much of the final figure is your own money, and how much is return.
Illustrative example, not advice.
SWP Calculator(Systematic Withdrawal Plan)
See whether a corpus can fund a monthly withdrawal for as long as you need it to, with the tax on each instalment, and what would be left at the end.
Illustrative example, not advice.
Home Loan EMI Calculator(Equated Monthly Instalment)
Work out the monthly EMI on a home loan, how much of what you repay is interest, and when the loan ends, with what an extra payment each month would save.
Illustrative example, not advice.
Related Articles
Page last updated: