RD Calculator

Don’t we all wish to grow our wealth? But that seldom happens, because we don’t make the right financial decisions. But if you must know there’s a subtle art of growing your money – and that subtle art involves investing in saving options. One such saving option is Recurring Deposit.That said, if you are planning to invest in Recurring deposit, you might as well consider using an RD calculator.Before we get to the basics and benefits of an RD Calculator, let’s first understand what Recurring Deposit is....Read More

Calculate your earnings with RD

You Get

Total Investment

Total Interest

Maturity amount

Note: Compounding is occurring on monthly basis.

Get Tax-Free##

Fixed Returns up to 7.2%*


Get Returns in just 5 years


Save tax up to Rs. 46,800##



Applicable for Titanium variant of Max Life Smart Fixed-return Digital plan (Premium payment of 5 years and Policy term of 10 years) and a healthy male of 18 years paying Rs. 20,000/- per month (exclusive of all applicable taxes) with 7.24% return. Life Insurance is available with this product


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What is a Recurring Deposit?

Recurring Deposit is a saving cum investment scheme offered by numerous banks in India. It works by making regular deposits into the saving tool. The deposit earns returns according to the rate of interest defined by the banks. Furthermore, the power of compound interest makes it an even more exciting deposit scheme, yielding better returns.

An RD account holder can invest a fixed amount every month while earning interest on the investment. The tenure of Recurring Deposit can range anywhere from 6 months to 10 years. Recurring Deposit provides ease of investment and flexibility to investors, making it an ideal saving cum investment scheme.

How Does RD Interest Calculator help you?

A Recurring Deposit calculator comes with multiple advantages that you can benefit from.


1. Aids Financial Planning

A Recurring Deposit Calculator can give you a fair idea of the maturity amount you’ll get when you invest a fixed amount for a fixed time as recurring deposit. Knowing the amount well in advance can help your financial planning by helping you make better investment and purchasing decisions.

2. RD Calculator is Easy to Use

There are numerous RD calculators available online. You just have to choose one, enter the deposit amount, and the number of years you want to keep investing in the Recurring Deposit, and you’ll get the results in no time.

How to Use Online RD Calculator?

An RD calculator is easy to use. To use the calculator on this page scroll to the 1st fold of the page and access the calculator given under the heading RD Calculator. You will be required to enter basic details such as your monthly investment amount, rate of interest per annum, and investment tenure to calculate the amount you will receive on maturity.

How is RD Interest calculated in 2022?

Knowing the maturity amount for your Recurring Deposit can help your financial planning. The maturity amount can be calculated manually as well as through the RD interest calculators available online.

As for RD interest, it is set by banks. Therefore, it’s not uncommon to find different interest rates for Recurring Deposit schemes offered by multiple banks. It is not clear how banks calculate interest rates for Recurring Deposit, but the interest rates are influenced by recession, RBI policies, inflation, economy, tenure, age of the applicant and so on.

Recurring Deposit Formula

The maturity amount of the Recurring Deposit can be calculated through the Recurring Deposit formula.

Here’s the formula:

A = P*(1+R/N)^(Nt)

A = Maturity amount

P = Recurring deposit amount

N = compounding frequency,

R = Interest rate

T = Tenure

Advantages of RD Calculator

RD or Recurring deposit is an investment tool that allows investors to save money on a regular basis for a long period of time. Calculating returns made on these deposits can be a challenging task for investors. Using an RD calculator can eliminate the hassles of estimating the returns manually. Apart from that, an RD calculator can provide you with the following benefits: -

Advantages of RD Calculator

Saves Time

RD calculator is a time-saving instrument. It can perform the calculations within a few seconds. The entire process from visiting the RD calculator website to making calculations will not take more than 2 minutes.


Using an RD calculator can give you fairly accurate results with correct inputs.

Free to Use

Most online RD calculator is free to use as many times as you like. It also offers you the flexibility to calculate returns using different variables.

Helps Compare RD Interest Rates

If you are confused about where you should open a RD account, the best strategy is to invest where interest rates offered are the highest. An RD calculator can provide instant comparison between maturity amount for different RD interest rates.

Future Planning

Knowing your future returns can help fulfil your financial goals efficiently. An RD calculator will provide you with right estimate of your future returns so you can plan accordingly.

Advantages of RD Calculator

Investing in an RD account allows individuals to earn fixed interest on the principal amount. The total amount including the interest earned can be withdrawn by the investor at maturity.

Here are some of the key features of Recurring Deposits: -

Low Initial Investment

One of the key features of an RD scheme is that it allows investors to start investing with low amounts. You can open a recurring deposit account with an investment of as low as Rs. 100.


The minimum period of deposit for an RD account is 6 months. You, as an investor has the flexibility to choose a suitable period with a maximum tenure of up to 10 years.

Interest Rate

The rate of interest offered on the RDs is always higher than the rates offered on a regular savings account. Make sure to invest in the RD that offers the highest interest rates.

Premature Withdrawal

Premature withdrawals under RD account are allowed but are subject to a certain penalty.

Tax Implications of RD


The money invested in an RD account every year is counted as part of yearly income of the investor. A TDS (Tax Deducted at Source) of 10% is deducted on the interests earned on your RD account. However, the TDS is not deducted if the interest earned is up to Rs. 40,000. Also, the TDS will be 20% in case you fail to provide your PAN information to the financial institution.

In case your income falls under non-taxable income slab, you will need to submit the Form 15G to be taxed for both fixed deposits and recurring deposits.

Is an RD Interest Rate fixed?

RD interest rate varies according to banks. Different banks offer different RD interest rates. However, the RD interest rate stands fixed during the investment tenure. This is to say, the RD interest rate you were promised at the start of the investment tenure would stay fixed regardless of any fluctuation during the investment tenure.

Is TDS applicable on an RD?

Yes, TDS is applicable on Recurring Deposit. 10% is deducted as TDS on interest earned exceeding INR 40,000. The limit extends to INR 50,000 for senior citizens.

What is the minimum tenure for an RD?

The minimum tenure of RD varies according to the bank. However, for most banks, the minimum investment tenure for Recurring Deposit is 6 months.

Eligibility Criteria for an RD Account

Here is a list of entities who are eligible to open a RD account: --

  • An individual.
  • A minor who is over 10 years and has an identification proof.
  • A minor who is below 10 years under his guradian’s suggestion
  • A government organization.
  • A company or a corporate.

Documents Required to Open an RD Account

Following documents are required to open an RD account: -

  • Identification proof.
  • Duly filled RD application form.
  • Passport size photographs.
  • Address proof.
  • KYC documents.

Frequently Asked Questions

A recurring deposit interest calculator is simple to use. You just have to enter your monthly deposit amount, expected rate of interest, and investment tenure to get the maturity amount.

The maturity amount of RD calculator can be calculated using a formula or an RD calculator. Before you use either of the two methods, ensure that you have decided your monthly deposit amount, and investment tenure.

However, it is suggested that you use an RD calculator instead, as the calculation can become a little complex when you are using the Recurring Deposit formula.

Recurring Deposit is a saving-cum investment option offered by multiple banks across India. Consequently, the Recurring Deposit interest rate differs. There is no clear data as to how Recurring Deposit interest rate is determined by banks. However, it is known that the interest rate is affected by economic conditions, RBI policies, inflation, tenure and age of applicant.
The tenure for Recurring Deposit account in banks can range from 6 months to 10 years.
The minimum monthly installment amount for investment in Recurring Deposit varies from bank to bank. It usually starts from INR 100.
If you have a sole-operated RD account, you can add a nominee to your RD account who will be entitled to get the money upon death of the account holder.
No, partial withdrawal from an RD account is not allowed once the amount has been deposited.
Yes, some banks lay a penalty in case of delay in monthly deposits. However, it depends on the banks. Some banks may also suspend your RD account if deposits are not made for three months or more.
Recurring Deposits are not subject to tax exemptions. The tax has to be paid on the interest amount received, according to the tax slab rate of the Recurring Deposit account holder.

An RD account can be opened through offline and online modes. To open it offline, you need to visit your nearest bank branch and request an RD application form. Along with a duly filled application form, you need to submit basic KYC documents.

To open an account online, you need to have access to net banking. Once you log in to your account, you can find the option to set up an RD account on the right side.

The interest that is to be received on an RD account can be calculated using an RD calculator. The online tool is simple to use and gives you results instantly. All you need to do is enter basic information such as monthly investment amount, interest rate and investment tenure to calculate the amount comprising of investment and interest accumulated.
Yes, most banks offer a higher interest rate for senior citizens. However, the said interest rate depends on the bank. Usually, most banks offer an increased interest rate of 0.5% - 1% to senior citizens.
Form 15H and 15G need to be filled out to avoid TDS. While form 15H is for senior citizens, Form 15G is for every individual except Non-Resident Indians or NRI.

Compound interest on Recurring Deposit can be calculated using the compound interest formula, which is:

A = P (1 + r/n) ^ nt

Where A is the total amount,
P = Principal investment amount
R = Rate of interest
N = number of times the interest is compounded.
T = investment tenure

Yes, the interest paid on Recurring Deposit is compounded quarterly.
Yes, the interest rate on RD is pre-fixed. This means you will be paid the interest amount according to the interest rate you signed up for at the beginning of the investment tenure.
Some banks levy a penalty if you do not pay your Recurring Deposit instalment. In addition, your Recurring Deposit account may get terminated if you fail to pay RD instalments consistently.
Yes, it is possible to add a nominee to your RD account. A nominee can withdraw money from the Recurring Deposit account in the event of the death of the policyholder.
The fundamental difference between FD and RD is the investment frequency. While FDs invite a one-time lump-sum deposit, RDs invite fixed monthly deposits.

ARN: PCP/RDC/150922

*#Guaranteed benefits are applicable if all due premiums are paid.









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Why Choose Max Life

99.34% Claims Paid Percentage

(Source : Max life annual audited financials FY 21-22)

269 Offices

(Source : As reported to IRDAI, FY 21-22)

₹1,174,515 Cr. Sum Assured

In force (individual) (Source : Max Life Public disclosure, FY 21-22)

₹1,07,510 Cr. Assets Managed

(Source : Max Life Public disclosure, FY 21-22)

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