Calculate the maturity amount and interest earned on your Recurring Deposit - bank or post office - with quarterly compounding.
Bank RDs use quarterly compounding (4 times/year). Post Office RDs also use quarterly compounding. Both are covered by this calculator.
Bank RDs are insured up to ₹5 lakh per depositor per bank under DICGC. Post Office RDs are sovereign (government) guaranteed.
TDS @ 10% applies if interest > ₹40,000/year (₹50,000 for seniors). Submit Form 15G/15H if income is below taxable limit to avoid TDS.
Banks allow premature closure at 1% penalty on applicable rate. Post Office RDs can be closed after 3 years (not before).
A Recurring Deposit (RD) is a term deposit product offered by banks and post offices that allows individuals to invest a fixed amount every month and earn guaranteed interest. RDs were introduced in India by post offices in the mid-20th century as a savings discipline tool for salaried and rural populations. Today, all scheduled commercial banks, cooperative banks, and India Post offer RDs, typically with tenures from 6 months to 10 years. As of 2024, SBI RD rates range from 6.5% to 7.0% per annum, while small finance banks offer up to 8.5%.
RD interest in India is compounded quarterly, not monthly or annually, as per RBI guidelines. This means interest is calculated every three months on the outstanding balance and added back to the principal. The maturity formula is: M = R x [(1+i)^n - 1] / (1-(1+i)^(-1/3)), where R is monthly deposit, i is quarterly rate, and n is total quarters. Our calculator applies this exact formula so results match your bank's official figures within a few rupees.
Post Office RDs currently offer 6.7% per annum (Q1 FY25), backed by sovereign guarantee - making them ideal for risk-averse investors. Interest from RDs is fully taxable as per your income slab, and TDS at 10% applies if interest exceeds Rs 40,000 per year (Rs 50,000 for senior citizens).