Find the maturity amount on a recurring deposit, or the monthly instalment that reaches a target. Quarterly compounding, the way Indian banks calculate it.
How much should I save every month to reach ₹5 lakh?
Switch the mode at the top to solve for the instalment. Over 5 years at 6.5%, ₹7,100 a month matures to ₹5,04,035. The instalment is rounded up to a whole hundred, so the answer always clears the target instead of landing a few hundred rupees short, and it is a figure a bank standing instruction will accept.
Why is my RD interest lower than an FD at the same rate?
Because your money goes in gradually. In an FD the whole amount earns from day one. In an RD the last instalment earns for a single month. The same ₹3,00,000 as a 5 year FD at 6.5% would pay about ₹1,05,000 in interest against ₹54,954 here.
How exactly do banks compound an RD?
Quarterly, on the running balance. Because instalments arrive monthly and compounding happens quarterly, each instalment gets a fractional exponent - one month counts as one third of a quarter. This calculator uses that convention, so it matches the maturity figure your bank quotes.
What if I miss a monthly instalment?
Most banks charge a small penalty for each missed instalment, often ₹1 to ₹2 per ₹100 per month. Miss six in a row and the bank can close the account and pay you the balance. The maturity amount also drops, because that instalment never earned anything.
Can I break an RD early?
Yes. The bank pays the rate that applied to the period you actually completed, minus a penalty of roughly 0.5% to 1%. Some banks pay no interest at all if you close within the first three months.
Is the post office RD the same?
The maths is the same quarterly compounding, but the post office 5 year RD has its own rate set by the government each quarter, and its own rules on rebates and defaults. Enter the current post office rate to use this page for it.
Is RD interest taxable?
Yes. It is added to your income and taxed at your slab rate. Banks deduct TDS on RD interest once it crosses the yearly threshold, the same as they do on an FD.
RD or SIP - which should I pick?
An RD gives a guaranteed return, usually near 6% to 7%. A SIP in an equity fund has no guarantee and can fall, but has historically paid much more over 10 years or longer. Use an RD for money you need within three years.