India · Recurring deposit · 2026

RD Calculator for India (2026) Know Your Real Returns Instantly

Calculate maturity, interest, tax impact, and inflation-adjusted earnings in seconds.

Your 6.5% return isn't really 6.5%. After tax and inflation, your real return is much lower.

Deposit details

₹500–₹50k · step ₹500
Typical bank RD: 5.5% – 7.5% p.a.
5 years · 60 months · 6 mo–20 yr

The truth about your return

Your 6.5% return isn't real — after tax and inflation, you're actually losing value.

6.5% Bank Return
Tax reduces returns
— After Tax
Inflation erodes value
— Real Return (after inflation)

6.5% → — → — p.a.

Real return ≈ return − tax − inflation

Bank maturity ₹3,54,954 What the passbook shows
In today's money —

Turn on inflation to see today's purchasing power.

You deposit ₹3,00,000
Interest earned ₹54,954 +18.3% on deposits

₹3.54L is what your bank shows — but its real buying power may be closer to ₹2.52L.

What this means for you

Try changing tenure or rate to see how real returns change

Adjust for reality Taxes cut gains · inflation cuts purchasing power Tax off Inflation off

Taxes reduce your gains. Inflation reduces your purchasing power. Turn both on to see what you actually earn.

5%–50% on interest
CPI 0–15%

Good for short–medium goals with guaranteed capital.

  • Tax not applied — maturity shown is pre-tax.
  • Inflation not applied — return is nominal, not purchasing power.
  • 5-year horizon — suitable for fixed-date goals.

How your RD grows

Solid line = RD balance · dashed grey = real purchasing power

Deposited ₹3,00,000 Maturity ₹3,54,954 Interest ₹54,954

    Solid indigo = RD balance · Grey dashed = cumulative deposits

    Principal vs interest

    What your pre-tax maturity is made of

    From deposit to what you keep

    Deposited → interest → tax → inflation → final — toggle above to fill tax & inflation steps

    Compare with SIP → Can your money actually grow? Same ₹/month · post-tax real return side by side

    Bank RD tools show pre-tax maturity. Your return after income tax on interest and inflation is what actually funds the goal — use the toggles above, then see how RD stacks up against a mutual fund SIP below.

    How RD and SIP compare

    Both use a fixed monthly amount — but one locks a guaranteed maturity, the other buys market units. Enter the same ₹/month in each calculator with tax and inflation toggles on to compare purchasing power, not just headline returns.

    Dimension Recurring deposit (RD) Mutual fund SIP
    What you get Fixed maturity (deposits + interest) Units in a fund; value moves with markets
    Capital safety Principal protected by bank / Post Office Can fall in corrections — no guarantee
    Return Rate locked at account opening Expected CAGR — historical, not promised
    Tax (typical) Interest taxed at your income slab LTCG on equity gains (rules vary by fund & tenure)
    After tax + inflation Often near zero or negative real yield Historically stronger over 7–10+ years — with volatility
    Sweet-spot horizon ~6 months to 3 years 5 years and above
    Best for Known expense on a fixed date (fee, trip, down-payment buffer) Retirement, child education, open-ended wealth goals

    Practical check: ₹5,000/month for 5 years — RD at 6.5% gives a predictable ~₹3.5L pre-tax; an equity SIP at the same outflow might land higher or lower. The gap matters most after your slab tax and 6% inflation — model both before choosing.

    Compare side by side: SIP calculator · FD calculator (lump-sum alternative)

    How to use this RD calculator

    Enter your numbers above — results, tax impact, and charts update instantly in your browser.

    1. 1 Monthly deposit, rate & tenure — match your bank RD offer (typical rates ~5.5–7.5% p.a.).
    2. 2 Read your result — maturity, effective return, deposited vs interest in the green summary.
    3. 3 Toggle tax & inflation — open settings under the result to see post-tax yield and today's rupees.
    4. 4 Review charts — growth over time, principal vs interest, and the waterfall from deposit to what you keep.

    Quarterly compounding, same method Indian banks use. Not tax advice — how RD interest is taxed.

    Learn more

    What is a recurring deposit (RD)?

    A bank or Post Office product where you deposit the same amount every month for a fixed tenure at a locked rate. You receive principal plus interest at maturity — the monthly version of an FD when you don't have a lump sum.

    Best for fixed-date goals (fees, trips, down-payment buffer) over roughly 6 months to 3 years.

    RD rates in India (2026)

    Most banks: 5.5–7.5% p.a. · Post Office: often 6.5–7.0% (set quarterly). Seniors usually get +0.25–0.50%.

    Shorter tenures (6–12 mo) often quote lower rates. Enter your bank's current rate in the calculator — rates change without notice.

    How RD interest is calculated
    • Each monthly installment earns for a different length of time.
    • Banks compound quarterly on each installment (not monthly).
    • TDS at 10% may apply when annual interest crosses ₹40k (₹50k for seniors) — your slab sets final tax.
    • Premature closure usually cuts the rate by ~0.5–1% for the period held.
    RD maturity formula (manual check)

    Maturity = Σ P × (1 + R/400)(n − k + 1) / 3 — P = monthly ₹, R = annual %, n = months, k = installment number.

    Example: ₹5,000/mo at 6.5% for 60 months → ₹3,54,954 pre-tax (+₹54,954 interest). The calculator runs this for every installment automatically.

    When an RD makes sense
    • Known expense on a fixed date with guaranteed capital.
    • Monthly savings habit without a lump sum.
    • Horizons under ~3 years — beyond that, compare post-tax real yield with SIP or PPF.

    FAQ

    Common questions

    Tax, inflation, and comparisons — short answers. Use the calculator toggles for your exact numbers.

    Does an RD beat inflation in India?

    Often no, once tax is included. At 6.5% nominal with a 30% slab, post-tax yield is roughly 4.55%. Subtract ~6% CPI and real return can turn negative. Turn on Apply tax and Apply inflation in the calculator to see your exact numbers.

    Is RD interest taxable?

    Yes — fully taxable as income from other sources at your slab. Unlike PPF or SSY, RD has no EEE exemption. TDS at 10% may be deducted by the bank, but you still reconcile the full interest in your ITR.

    What is Form 15G or 15H for an RD?

    If your total income stays below the taxable limit, submit Form 15G (or 15H for senior citizens) so the bank skips TDS on RD interest. If TDS was deducted despite a low income, you can usually claim it back when filing. TDS is withholding — your slab sets the final tax.

    RD vs FD — which is better?

    Same quoted rate, FD usually wins slightly on maturity because the full principal earns from day one. RD fits monthly cashflow without a lump sum. Compare both with the same rate and tenure in the FD calculator and this tool.

    RD vs SIP — which should I choose?

    Under ~3 years with guaranteed capital, RD is predictable. For 5+ year goals, equity SIPs have historically delivered higher inflation-adjusted returns — with volatility and no guarantee. Use the SIP calculator with real-return toggles for a side-by-side mindset check.

    Is RD good for long-term wealth building?

    Generally no. Taxable interest and inflation drag make multi-year RDs weak for wealth creation. Prefer RD for near-term, fixed goals; for 7+ year horizons compare post-tax real yield against SIP or PPF before locking in.

    What is the maximum RD amount per month?

    There is no statutory cap on the monthly installment. Very large RDs trigger TDS faster because annual interest crosses ₹40,000 sooner — split across banks only helps DICGC coverage, not the TDS threshold at a single bank.

    Post Office RD vs bank RD — which is better?

    Post Office RD has sovereign guarantee and no TDS deduction at source. Bank RDs sometimes offer higher rates and DICGC insurance up to ₹5L per depositor per bank. Compare the net post-tax yield for your slab, not the headline rate alone.

    How much will ₹5,000 per month RD give after 5 years?

    At 6.5% p.a. with quarterly compounding, ₹5,000/month for 60 months gives a pre-tax maturity of ₹3,54,954 — you deposit ₹3,00,000 and earn ₹54,954 in interest (+18.3%). After 30% income tax on interest, the post-tax maturity is approximately ₹3,38,467. Enter your own rate and tenure in the calculator above for exact numbers.

    What is the RD interest rate in India in 2026?

    In 2026, bank RD rates in India range from approximately 5.5% to 7.5% p.a. for general citizens, depending on the bank and tenure. Senior citizens typically receive an additional 0.25–0.50%. Post Office RD rates are set quarterly by the government and have been in the 6.5–7.0% range. Always check your bank's current rate card before opening an RD, as rates can change without notice.

    Can I get a loan against my RD?

    Yes. Most banks offer overdraft or loan facilities against your RD — typically up to 80–90% of the maturity value. Interest on the loan is usually 1–2% above your RD rate. This makes RDs useful as an emergency liquidity buffer: your RD keeps earning while the loan covers a short-term need.

    Is there any tax benefit on RD investment in India?

    No. Unlike ELSS mutual funds or PPF, RD investment does not qualify for deduction under Section 80C. The entire interest earned is added to your income and taxed at your slab. If you need both disciplined monthly savings and tax benefits, consider PPF (up to ₹1.5L/year, EEE status) or ELSS SIPs.

    What happens if I miss an RD installment?

    Missing an installment usually attracts a small penalty — typically ₹1–2 per ₹100 of the missed installment per month of delay. The account does not close automatically, but continued missed payments may lead the bank to foreclose the RD prematurely at a lower rate. Set up an auto-debit to avoid this. Post Office RD allows a 2-month default before closure.

    What is the minimum and maximum RD tenure?

    The minimum tenure for most bank RDs is 6 months; the maximum is 10 years at major banks. Post Office RD has a fixed tenure of 5 years (extendable in 5-year blocks). The calculator on this page supports 6 months to 20 years so you can model any scenario, though maturities beyond 10 years are uncommon for standard bank RDs.