RD Calculator

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What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a popular savings option where you deposit a fixed amount every month for a pre-decided tenure. The bank pays interest on your monthly deposits, and the maturity amount is received at the end of the term. RD is ideal for people who want to build disciplined savings with guaranteed returns.

How Does an RD Work?

In an RD, you deposit a fixed amount monthly. Each deposit earns interest based on the bank’s RD interest rate. Deposits made earlier earn interest for a longer period compared to later deposits.

• Fixed monthly deposit
• Fixed tenure (usually 6 months to 10 years)
• Guaranteed interest rate
• Maturity amount paid at the end of tenure

RD Interest Calculation Formula

RD Calculation Example

• Monthly Deposit: ₹5,000
• RD Interest Rate: 7% per annum
• Tenure: 5 years (60 months)

Using the above formula, the RD calculator instantly shows:

• Total amount deposited
• Total interest earned
• Final maturity value

Benefits of RD

• ✔ Safe and risk-free investment
• ✔ Guaranteed interest rate (no market risk)
• ✔ Ideal for disciplined monthly savings
• ✔ Perfect for long-term financial goals
• ✔ Simple, transparent, and easy to understand

Frequently Asked Questions (FAQ)

1. Can I withdraw my RD before maturity?

Yes, but banks usually charge a penalty for premature withdrawal.

2. Is RD better than SIP?

RD is risk-free with guaranteed returns. SIP offers potentially higher returns but comes with market risk.

3. What is the minimum tenure for RD?

The minimum tenure is generally 6 months, depending on the bank.

4. Can NRIs open an RD?

Yes, NRIs can open RD through NRE/NRO accounts, depending on bank rules.