Monthly deposits, not a one-shot FD
An RD is the fair cousin of an FD when salary arrives every month. This page compounds recurring deposits; it is not the same loop as a five-year cumulative FD booked once. If you already have a lumpsum, use the FD calculator.
Bank RD day-count and premature-closure rules will disagree with this worksheet by a small amount. Tax on interest sits outside, same as FD. For long equity goals, an RD is usually the wrong product SIP vs FD is the job assignment.
RD vs the same total as a day-one FD
Motion is the same maths as the worksheet. Reduced-motion browsers skip the grow.
Calculator education
When to use this calculator
Use this page when salary will fund a monthly deposit and you want an illustrated maturity at a bank or post-office RD rate you type.
How to read your result
Invested amount is monthly deposit × months. Estimated returns are interest. Total value uses this site’s recurring-deposit approximation (quarterly-rate treatment of monthly deposits), which can differ slightly from a bank’s day-count.
Interest is usually slab-taxed; the maturity above is pre-tax.
Key assumptions and limitations
- Monthly deposits, compounding approximation used on this site — not the one-shot FD formula.
- Rate and tenure are yours to type from the rate card.
- Missed instalments and premature closure are not in the loop.
Common mistakes
- Using an RD screenshot for a 15-year equity goal.
- If you already have the lump, comparing an RD with an FD of the same rate without noticing timing.
- Ignoring tax on RD interest when comparing with EEE products.
Related guides
Related calculators
RD maturity is an illustration at the rate you entered. Bank day-count and tax will move the passbook number. Rules and rates can change. Check the latest notification or official guidance before making a financial decision. Full disclaimer.
Author / methodology
What I check on an RD
- If I already have the lump, the FD page is fairer. An RD exists because salary arrives monthly.
- Interest is usually slab-taxed. The maturity above is pre-tax.
- A 15-year equity goal does not belong on a 7% RD screenshot.
An RD is a bank (or PO) product funded from salary, not a cheaper SIP
The issuer is usually the same family as an FD. The cash-flow is not.
| Product | Who you lend to | When this is the wrong tool |
|---|---|---|
| Bank / PO RD | That bank or the post office; DICGC if it is an insured bank deposit | A 15-year equity goal use SIP, not a 7% RD screenshot |
| Bank FD | Same issuer, one shot | When the rupees arrive monthly that is this page |
| Corporate NCDs sold as 'like RD' | A company; no DICGC | Anytime you only compared the coupon to this RD engine |
Interest is taxable as other income for most resident individuals. This worksheet is pre-tax.
Same loop as this page: monthly deposits, not a one-shot FD.