RD Maturity Calculator

## What is the RD Maturity Calculator? The Recurring Deposit (RD) Calculator estimates the maturity value of a monthly RD investment. RDs are popular among individuals who want to save a fixed amount every month and earn guaranteed returns. The interest is compounded quarterly, similar to FD. ## Formula Used Maturity = P x ((1 + r/n)^(n x t) - 1) / (r/n) Where: P = Monthly deposit amount r = Annual interest rate / 100 n = 4 (quarterly compounding) t = Tenure in years ## Worked Example Monthly deposit: Rs 5,000, Rate: 6.5% p.a., Tenure: 2 years (24 months) Effective quarterly rate = 6.5/4 = 1.625% Maturity = Rs 5,000 x ((1.01625)^8 - 1) / 0.01625 Maturity approximately Rs 1,28,490 Total Investment = Rs 1,20,000 Interest Earned = Rs 8,490 ## Frequently Asked Questions 1. What is the typical RD interest rate in India? Bank RD rates for 1 to 5 year tenures range from 4.5% to 7.0% p.a. for regular citizens. Senior citizens get 0.5% extra. Post Office RDs currently offer around 6.9%. 2. Is RD better than FD for saving? RDs are better for regular savers who want to deposit a fixed amount monthly. FDs suit those with a lump sum to invest. 3. Can I withdraw from an RD prematurely? Premature withdrawal is allowed in most banks but with a penalty — typically 0.5 to 1% on the applicable rate. 4. How is RD interest calculated? RD interest is calculated using the declining balance method. Each monthly instalment is treated as a separate deposit, and interest is applied for the remaining period. Interest is compounded quarterly. 5. What is the tax treatment on RD interest? RD interest is fully taxable as per your income tax slab, similar to FD interest. TDS is deducted if annual interest exceeds Rs 40,000 (Rs 50,000 for senior citizens).