RD Calculator
Calculate your Recurring Deposit maturity amount and returns
Minimum: ₹500, Maximum: ₹10,00,000
Current RD rates: 6.5% – 8.5% (varies by bank)
Minimum: 6 months, Maximum: 10 years
Summary
Returns on investment
3.7%
RD Calculator
Recurring Deposits (RDs) are one of the most popular investment options in India. They are ideal for individuals who want to develop a habit of saving regularly while also earning a fixed return. Unlike a Fixed Deposit (FD) where you invest a lump sum at once, an RD allows you to deposit a fixed amount every month for a specific tenure.
To simplify the process of estimating returns, investors often use an RD Calculator. This tool gives you an accurate picture of the maturity amount and interest earned without doing complex manual calculations.
What is an RD Calculator?
An RD Calculator is an online financial tool that helps you calculate the maturity value of your Recurring Deposit. All you need to do is enter:
• Monthly deposit amount
• Tenure (in months/years)
• Rate of interest offered by the bank
With these inputs, the calculator instantly displays your total investment, maturity amount, and interest earned. This saves time and helps you compare RD schemes offered by different banks such as SBI, HDFC, Canara Bank, and Axis Bank.
Popular Bank RD Calculators in India
Different banks provide their own RD calculators to help customers calculate their maturity amount. Some of the most searched ones are:
1. SBI RD Calculator
The SBI RD Calculator is widely used by customers of State Bank of India. It allows you to quickly check how much your monthly savings will grow at SBI’s RD interest rates.
2. HDFC RD Calculator
HDFC Bank provides an easy-to-use HDFC RD Calculator that helps you determine the exact maturity amount based on the deposit, tenure, and HDFC RD interest rate.
3. Canara Bank RD Calculator
If you are a Canara Bank customer, you can use the Canara Bank RD Calculator to compare the returns of your recurring deposit with other banks.
4. Axis Bank RD Calculator
The Axis Bank RD Calculator gives you a clear picture of your expected returns and helps you plan your investments m
ore effectively.
How Can an RD Calculator Help You?
Recurring Deposits (RDs) are one of the most reliable savings instruments for salaried individuals and small investors in India. They promote regular savings and provide guaranteed returns over a fixed tenure. However, calculating the exact maturity value of an RD can be confusing because the interest is compounded quarterly and involves multiple variables.
This is where an RD Calculator becomes a game-changer. It provides quick, accurate, and hassle-free results, allowing investors to plan their finances with confidence.
RD Full Form
If you are new to banking and investments, you might have often come across the term RD. Many people search for “RD Full Form” to understand its meaning in finance. Let’s clear that up for you.
The full form of RD is Recurring Deposit.
A Recurring Deposit (RD) is a type of term deposit offered by banks and financial institutions that allows individuals to invest a fixed sum of money every month for a specified period. At the end of the tenure, the investor receives the deposited amount along with interest, making it one of the safest and most disciplined saving options in India.
What is a Recurring Deposit (RD)?
An RD account is designed for salaried individuals, students, or anyone who wants to save money in small amounts regularly. Unlike a Fixed Deposit (FD), where you deposit a lump sum at once, an RD requires monthly deposits of a fixed amount.
Banks like SBI, HDFC, Canara Bank, and Axis Bank offer recurring deposit schemes with attractive interest rates.
Formula to Determine RD Maturity
Recurring Deposits (RDs) are one of the most preferred saving options in India because they allow you to invest small amounts monthly while earning guaranteed returns. However, calculating the maturity value of an RD manually can be complex because of quarterly compounding. This is why understanding the RD maturity formula is important for investors.
Standard Formula for RD Maturity
The maturity amount of a Recurring Deposit is calculated using the following formula:
A = P × (1 + R/N)^(N × t) Where:
• A = Maturity amount (final value you receive)
• P = Monthly installment (amount invested every month)
• R = Annual rate of interest (in decimal, e.g., 8% = 0.08)
• N = Number of compounding periods per year (usually 4 for quarterly compounding)
• t = Tenure of the deposit (in years)
This RD maturity formula is standard across all banks and financial institutions. Regardless of the sum invested or tenure chosen, this formula helps in determining the exact maturity value.
Example of RD Maturity Calculation
Let’s understand this with a practical example:
Monthly Deposit (P) = ₹5,000
Tenure (t) = 1 year (12 months or 4 quarters)
Annual Interest Rate (R) = 8%
Compounding frequency (N) = 4 (quarterly)
Now applying the formula:
A = P × (1 + R/N)^(N × t)
= 5000 × (1 + 0.0825/4)^(4×12/12) = ₹5,425.44
= 5000 × (1 + 0.0825/4)^(4×11/12) = ₹5,388.64
= 5000 × (1 + 0.0825/4)^(4×1/12) = ₹5,034.14
Adding the entire series, the total maturity amount = ₹62,730.85
Thus, the depositor earns both the invested principal and compounded interest over the chosen tenure.
Post Office RD Calculator
Recurring Deposits (RDs) are a safe and disciplined way to save money regularly while earning guaranteed returns. If you have an RD account with the Post Office, you can easily calculate your maturity amount using the Post Office RD Calculator, also referred to as the Postal RD Calculator.
This online tool is simple, accurate, and free to use. It eliminates the need for manual calculations, making it easy for investors to know the exact maturity amount of their recurring deposit.
About India Post and Post Office RD
India Post, operated by the Department of Posts, is one of the largest postal networks in the world, with over 1.55 lakh post offices spread across the country. In 2018, the India Post Payments Bank (IPPB) was launched to provide banking and financial services to all citizens, including recurring deposit accounts.
The Post Office Recurring Deposit Scheme is one of the most popular options for individuals seeking safe and government-backed investments. By using the Postal RD Calculator, you can easily plan your finances and estimate how much your monthly savings will grow over time.
RD Interest Rates
Recurring Deposits (RDs) are one of the safest and most preferred risk-free investment options in India. They are ideal for salaried individuals, students, and anyone with a regular income who wants to save systematically while earning guaranteed returns.
A Recurring Deposit allows you to deposit a fixed sum every month into your RD account for a predetermined tenure. Over time, the invested amount grows with compounded interest, providing a substantial maturity amount.
Post Office RD Interest Rates
The Post Office RD is a popular choice among conservative investors seeking government-backed security. The Post Office RD interest rate is revised periodically by the Government of India and offers attractive returns with minimal risk.
• Tenure: Usually ranges from 1 to 5 years
• Interest Rate: Varies between 4% to 7.9% per annum (subject to periodic revision)
• Compounding: Interest is compounded quarterly
Investors can also use the Post Office RD interest rate calculator to determine the exact returns they can expect from their recurring deposit based on their deposit amount, tenure, and prevailing interest rates.
Advantages of Using an RD Maturity Calculator
Recurring Deposits (RDs) are one of the most trusted and risk-free investment options in India. They allow investors to save small amounts regularly and earn guaranteed returns over time. However, calculating the maturity value of an RD manually can be cumbersome due to quarterly compounding and multiple variables.
This is where an RD maturity calculator comes into play. Using online tools like wowtool.in RD calculator or bank-specific calculators such as SBI RD calculator, HDFC RD calculator, or Post Office RD calculator, investors can accurately determine their RD returns within seconds.
Key Advantages of Using an RD Maturity Calculator
1. Saves Time
An online RD calculator eliminates the need for manual calculations. From visiting the website to viewing the results, the entire process usually takes just 1-2 minutes, making it a highly efficient tool for busy investors.
2. Accurate Results
When you input all the variables correctly—such as monthly deposit, tenure, and interest rate—the calculator provides precise and error-free maturity amounts. This ensures that investors have reliable data for financial planning.
3. Free and Unlimited Use
Most online RD calculators are completely free. You can use them multiple times, experiment with different deposit amounts, tenures, or interest rates, and compare potential returns without any cost.
4. Compare Investment Options
An RD calculator helps you not only calculate your RD maturity but also compare different investment schemes. You can evaluate your recurring deposit against fixed deposits, post office savings schemes, or other bank RDs to make informed decisions.
5. Simplifies Financial Planning
Recurring deposits are considered stable investments with guaranteed returns. By using an RD calculator, you can plan your savings, set realistic financial goals, and track how much you will earn at maturity. This makes long-term financial planning more precise and effective.
FAQs
Is TDS applicable on RD?
Yes, Tax Deducted at Source (TDS) is applicable on Recurring Deposits (RD). As per the Finance Bill 2015, effective from June 1, TDS is mandatory on the interest earned from RDs, similar to Fixed Deposits. However, TDS is deducted only on the interest income and not on the principal amount you deposit. If your total interest income from deposits (FD + RD) in a financial year exceeds the prescribed limit set by the Income Tax Department, TDS will be applicable. Investors can also submit Form 15G/15H (if eligible) to avoid TDS deduction.
Can I break my RD prematurely?
Yes, you can close your Recurring Deposit (RD) account before its maturity. When you break an RD prematurely, the bank or financial institution will pay interest only for the period your deposit was active. However, most banks levy a penalty fee or offer a slightly lower interest rate for premature withdrawals. The penalty terms vary across banks and NBFCs, so it’s always advisable to check the RD rules before investing. Premature closure is useful in case of urgent financial needs, but keeping the RD until maturity ensures maximum returns.
RD full form
The full form of RD is Recurring Deposit. It is a popular savings and investment scheme offered by banks and post offices where you deposit a fixed amount of money every month for a specific tenure. In return, the bank pays you interest at a predetermined rate, and on maturity, you receive both the deposited amount and the interest earned.
Recurring Deposits are considered a safe and disciplined way of saving regularly, making them suitable for salaried individuals and those who want guaranteed returns without market risks.
What can be the tenure of my Recurring Deposit account?
The tenure of a Recurring Deposit (RD) account is flexible and can be chosen based on your financial goals. Most banks and post offices allow you to open an RD for a minimum period of 6 months, and thereafter in multiples of 3 months such as 9 months, 12 months, 15 months, and so on. The maximum tenure for an RD is generally 120 months (10 years), and deposits are not accepted beyond this limit.
Choosing a longer tenure helps you accumulate higher savings with compounded interest, while shorter tenures are useful for meeting near-term financial needs.