RD Calculator

Indian banks compound RD interest quarterly. The standard formula is: M = P × [(1 + i)^n − 1] / (1 − (1 + i)^(-1/3)), where P is the monthly deposit, i is the quarterly interest rate (annual rate ÷ 4 ÷ 100), and n is the number of quarters in the tenure. This calculator uses that formula so the maturity matches what SBI, HDFC, ICICI, and Post Office RDs actually pay.

As of late 2025: SBI 5-year RD around 6.5%, Post Office RD 6.7%, small finance banks 7.5-8.25% for senior citizens. Rates change quarterly — always verify the current rate at your bank before opening an RD. Senior citizens typically get 0.25-0.5% extra.

Yes. RD interest is fully taxable as 'Income from Other Sources' at your slab rate. TDS at 10% is deducted by the bank if total interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You must declare RD interest in your ITR even if no TDS was deducted.

RDs offer guaranteed returns (~6-7%) with no market risk. SIPs in equity mutual funds historically return 10-15% over 5+ years but with volatility. RDs suit short-term goals (1-3 years) and conservative investors; SIPs suit long-term goals (5+ years) where market risk smooths out. Many investors use both — RDs for emergency fund, SIPs for wealth building.