Calculate Your RD Maturity
| Year | Deposited/yr | Total Deposited | Interest | Balance |
|---|
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a popular savings instrument offered by banks and post offices. You deposit a fixed amount every month for a predetermined period, and at maturity, you receive the total deposits plus compound interest.
How RD Works
Unlike a Fixed Deposit where you invest a lump sum, an RD lets you save small amounts monthly. Interest is compounded quarterly, and each monthly installment earns interest from its date of deposit until maturity. This makes RD ideal for salaried individuals who want to build savings gradually.
RD vs FD
- RD: Monthly deposits, ideal for regular savings. Slightly lower effective return due to staggered deposits.
- FD: One-time lump sum, higher effective return since entire amount compounds from day 1.
- Interest rates: Generally similar or slightly lower for RD compared to FD at the same bank.
RD Interest Calculation Formula
A simpler way to think about it: each monthly deposit of ₹P earns interest compounded quarterly for the remaining months until maturity.
Current RD Interest Rates (2026)
| Bank / Institution | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.50% |
| HDFC Bank | 6.60% | 7.10% | 7.00% |
| ICICI Bank | 6.70% | 7.10% | 7.00% |
| Post Office | 6.70% | 6.70% | 6.70% |
Rates are indicative and change periodically. Senior citizens typically get 0.25-0.50% extra.
RD vs Other Monthly Savings Options
| Feature | RD | SIP (Mutual Fund) | PPF | SSY |
|---|---|---|---|---|
| Returns | 6.5–7.5% | 10–15% | 7.1% | 8.2% |
| Risk | Zero (Bank) | Market-linked | Zero (Govt) | Zero (Govt) |
| Tax on Returns | Fully taxable | LTCG above ₹1.25L | Tax-free | Tax-free |
| Liquidity | Moderate (penalty) | High | Low (15yr lock) | Low (21yr lock) |
| Best For | Safe short-term | Wealth creation | Long-term safe | Girl child savings |