RD Calculator

Indian bank RDs credit interest quarterly even though you deposit monthly — each month's deposit is folded into the balance, and that balance compounds forward at the quarterly rate for the remaining quarters until maturity. This calculator uses the same standard RD maturity formula most Indian banks and financial calculators publish, so the result matches what a real RD statement would show, rather than a simplified monthly-compounding approximation.

An RD's return is a fixed, bank-guaranteed rate declared upfront and compounds quarterly, so the maturity amount is known in advance. A SIP into a mutual fund has no guaranteed rate — returns depend on market performance and can be higher or lower than any RD, and the amount you'll actually get at the end is an estimate, not a promise. RDs suit predictable, near-term goals; SIPs suit longer horizons where you can absorb market ups and downs.

Most banks allow premature withdrawal but apply a penalty — typically a reduced interest rate for the period you actually held the deposit, similar to breaking a fixed deposit early. Some banks also restrict partial withdrawals entirely, requiring you to close the full RD. Check your specific bank's terms before assuming you can exit without a cost.

Most Indian banks add a standard bonus — commonly 0.50% p.a. — to their regular RD rate for senior citizens (60+), the same convention used for fixed deposits. This is a typical, commonly published figure used as this calculator's default assumption, not a universal rule, so confirm your specific bank's senior citizen RD rate before relying on it.

Yes — RD interest is fully taxable as "income from other sources" at your slab rate. Banks deduct TDS at 10% if your total interest from that bank across all RDs and FDs exceeds ₹40,000 in a year (₹50,000 for senior citizens); if it's below that threshold, you still owe tax on it yourself even though no TDS was deducted.