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Recurring Deposit Calculator
Calculate the maturity value for a monthly recurring deposit. Adjust any input below and your results update instantly.
Understanding recurring deposits
The concept, the motivation, and what to watch out for.
Monthly deposits, but interest compounds quarterly
A recurring deposit lets you build up a lump sum through fixed monthly instalments instead of one upfront deposit — but the interest itself compounds quarterly, not monthly, a mismatch most simplified calculators gloss over. The standard bank formula accounts for this directly.
This calculator uses that same formula, then layers on what most RD calculators skip: TDS withheld by your bank, and what you'd actually owe at your own income tax slab rate.
Quarterly compounding, monthly deposits
Each instalment starts earning interest from its own deposit date, but everything only actually compounds once every quarter — not every month.
TDS isn't the same as your actual tax
Banks withhold a flat 10% once your annual interest crosses a threshold — but you might owe more (at a higher slab) or get it back entirely as a refund.
How this calculator helps
Enter your monthly deposit, rate, and tenure — see your maturity value, TDS withheld year by year, and your real tax liability at your own slab rate.
Calculate your RD maturity value
Fill in the starred fields on the left — your results update instantly on the right.
Your details
Senior citizen
Adds a 0.5% bonus rate, typical for most banks.
e.g. ₹5,000 a month
e.g. 7% for a 5-year RD
e.g. 5 years
e.g. 20%
These are example numbers. Edit any input on the left to see your own.
Your RD matures to
₹3.60 L
7.00% effective rate
Total deposited
₹3.00 L
TDS withheld
₹0
₹0 withheld as TDS, but your actual tax at 20% comes to ₹11,933.
Balance vs. deposited
RD balanceAmount deposited
Year-by-year breakdown
TDS is checked against each year’s own interest, not your RD’s total over its tenure.
YearInterestTDSStatus
1₹2,311₹0
Below threshold
0% withheld as TDS
2₹6,788₹0
Below threshold
0% withheld as TDS
3₹11,588₹0
Below threshold
0% withheld as TDS
4₹16,732₹0
Below threshold
0% withheld as TDS
5₹22,246₹0
Below threshold
0% withheld as TDS
Compare scenarios
See how a senior citizen rate or a bigger deposit changes your maturity value.
Your plan
₹5,000/mo · 5y
₹3.60 L
Maturity value
Baseline
With senior citizen rate
7.50%
₹3.64 L
Maturity value
+₹4,785
Deposit +20%
₹6,000/mo
₹4.32 L
Maturity value
+₹71,933
Worked example, using your numbers
A step-by-step walkthrough of your RD's growth.
Step 1 · Effective rate
Including any senior citizen bonus, your effective rate is
7.00%
Step 2 · Total deposited
Depositing ₹5,000/month for 5 years, you put in
₹3.00 L
Step 3 · Maturity value
Compounding quarterly, your RD grows to
₹3.60 L
✓
Your ₹5,000/month RD grows to ₹3.60 L — a total interest of ₹59,664.
Personalised insights
What your numbers reveal, and what changing them would do.
₹59,664 total interest at 7.00%
Your ₹3.00 L in deposits grows to ₹3.60 L at maturity.
No TDS withheld — interest stays below the threshold each year
Even a sizeable total, spread across years, can avoid TDS if no single year crosses the threshold.
You'd owe ₹11,933 more than the TDS withheld
At your 20% slab rate, your real tax on ₹59,664 interest is ₹11,933, versus ₹0 withheld as TDS.
Depositing 20% more grows your maturity value by ₹71,933
Raising your monthly deposit to ₹6,000 changes your maturity value to ₹4.32 L.
How this is calculated
Every step of the math behind your result, shown in the open.
RD maturity value
R = monthly deposit, i = quarterly rate (annual rate ÷ 400), n = number of quarters, M = maturity value
The standard bank/post office formula for a recurring deposit — it folds monthly deposits into quarterly compounding in a single closed form, rather than compounding every month.
Example: ₹5,000 × [(1+i)^20 − 1] / [1−(1+i)^(−1/3)] → ₹3.60 L
Quarterly rate, from the annual rate
r = annual RD interest rate as a percentage (incl. any senior citizen bonus), i = quarterly rate used in the maturity formula
Dividing by 400 does two things at once: converting the annual percentage to a decimal, and splitting it into a quarterly rate.
Example: 7.00% ÷ 400 → 0.01750 quarterly rate
TDS vs. actual tax owed
Interest = that year's interest credited, TDS = withheld by the bank
TDS is a flat-rate withholding your bank applies automatically; your real tax liability depends on your own income tax slab rate, which can be higher or lower.
Example: ₹59,664 interest → ₹0 TDS withheld vs. ₹11,933 actually owed at 20%
Assumptions
- Tenure is modeled in whole years — real RDs can run from 6 months to 10 years.
- Every instalment is assumed paid on schedule — missed or delayed deposits and any resulting penalty aren't modeled.
- The senior citizen bonus is a common convention (typically 0.25–0.75%), not a regulated figure — confirm your bank's actual rate.
- TDS is checked per year against this single RD's interest only — banks actually aggregate interest across all your deposits with them for this check.
- Figures are indicative — not tax or financial advice.
Did you know?
A few facts behind recurring deposits and their taxation.
÷400
One number does two conversions at once
Dividing the annual rate by 400 both converts it to a decimal and splits it into a quarterly figure — the standard shorthand used in every published RD formula.
194A
RD interest follows the same TDS rule as FDs
Banks check the same ₹40,000/₹50,000 thresholds and 10% rate for recurring deposit interest as they do for fixed deposits — it's the same Section 194A provision.
Quarterly
The compounding frequency isn't a choice here
Unlike fixed deposits, where banks sometimes offer monthly or annual compounding options, recurring deposits are conventionally always compounded quarterly.
Post Office
The Post Office RD scheme uses the same formula
India Post's 5-year RD scheme, one of the most popular small-savings instruments, calculates maturity value with the identical quarterly-compounding formula banks use.
Penalty
Missing an instalment isn't free
Most banks charge a penalty (commonly a small percentage of the missed instalment) for late or skipped RD payments, and repeated misses can lead to account closure.
Frequently asked questions
Straight answers to the questions we hear most about recurring deposits.
Why does interest compound quarterly if I'm depositing monthly?
That's simply the banking convention for recurring deposits in India — each instalment starts earning interest as soon as it's deposited, but the accumulated interest is only actually credited to the balance once every quarter, not every month.
When does my bank deduct TDS on RD interest?
Once your interest from that bank crosses ₹50,000 in a financial year (₹1,00,000 for senior citizens), it withholds 10% as TDS — the same Section 194A rule that applies to fixed deposit interest.
Is TDS the same as my final tax on RD interest?
No — TDS is just a flat-rate withholding. RD interest is taxed at your actual income tax slab rate when you file, so you may owe more (if your slab rate exceeds 10%) or get some or all of the TDS refunded (if your total income is below the taxable threshold).
How much extra do senior citizens get on RDs?
Most banks add 0.25–0.75% (commonly 0.50%) on top of the standard quoted rate for senior citizens — the same convention as fixed deposits, not a government-mandated figure.
What happens if I miss a monthly instalment?
Most banks charge a small penalty for missed or delayed instalments, and some allow only a limited number of missed payments before the account is closed — this calculator assumes every instalment is paid on schedule.
Is this tax advice?
No. This tool provides indicative estimates based on your inputs and the rates in force at the time. Consult a chartered accountant for your actual tax liability on RD interest.
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Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
Why RD interest compounds quarterly, not monthly
The banking convention behind the standard maturity formula.
4 min read
Strategy
RD vs. SIP: which suits your goal?
Fixed returns and discipline, versus market-linked growth.
5 min read
Strategy
TDS on RD interest, and how to avoid it legally
Form 15G/15H, thresholds, and claiming a refund.
5 min read