RD Calculator

Maturity value of a recurring deposit.

Overview

Projects the final maturity payout of monthly recurring deposits in banks and post offices under quarterly compounding rules.

Formula & Calculation Method

M = P × n + P × n × (n + 1) / (2 × 12) × (r / 100)

P = Monthly instalment, n = Total months, r = Annual interest rate %.

Worked Example: ₹5,000 Monthly RD for 3 Years at 7% p.a.

Inputs: Monthly Deposit = ₹5,00,000? No, ₹5,000 | Rate = 7% p.a. | Tenure = 36 Months

  • Total capital deposited = ₹5,000 × 36 = ₹1,80,000
  • Quarterly compounding interest evaluation across instalments
  • Maturity value = ₹2,01,148

Summary: Total Deposited = ₹1,80,000 | Interest Earned = ₹21,148 | Maturity Value = ₹2,01,148

Common Use Cases

  • Disciplined Savings: Build fixed capital from monthly salary without taking equity market risks.
  • Short-Term Goals: Save for annual insurance premiums, property taxes, or vacation travel expenses.
  • Post Office RD: Evaluate government small savings RD schemes with guaranteed sovereign security.

Frequently Asked Questions

Is RD interest taxable in India?

Yes, RD interest is taxable under 'Income from Other Sources' at your applicable slab rate.

What happens if I miss an RD instalment?

Banks charge a nominal penalty fee (usually ₹1 to ₹2 per ₹100 of instalment) for late payments.

Can I withdraw an RD prematurely?

Yes, but banks deduct a premature penalty (typically 1% reduction in the applicable interest rate).

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