How to use the RD Calculator (Recurring Deposit)
- Enter your monthly deposit.
- Enter the RD interest rate.
- Enter the tenure in months.
- See maturity value and interest.
How RD interest is calculated
Each monthly instalment earns interest, compounded quarterly, for the months it stays deposited. The first instalment earns for the full tenure and the last one for one month. Post office RDs run for 5 years.
Example: ₹3,000 a month for 60 months at 6.7% matures at about ₹2.14 lakh.
Frequently asked questions
Is RD better than SIP?
RD gives guaranteed returns but lower growth. SIPs in equity funds can earn more over the long term but carry market risk.
Is RD interest taxable?
Yes, at your slab rate. TDS applies if interest crosses the yearly limit.
These tools give estimates for general guidance and are not financial or tax advice. Rates and rules can change; check official sources before making decisions.