Save Is monthly saving worth the tax?
RD tax calculator
See post-tax maturity and tax on RD interest before you lock the habit.
Deposit details
Your RD maturity
What your RD is really worth
See how taxes and inflation affect your RD’s real value.
Assumptions
Tax slab
Inflation
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After Tax 30% tax₹3,38,467 Interest tax reduces what you keep
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Today’s Buying Power 6% inflation₹2,52,900 What that money can buy in today’s rupees
How your RD grows
Growth over tenure
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
Same ₹/month · post-tax real return side by side
Bank tools show pre-tax maturity. After tax and inflation, compare that real yield with a mutual fund SIP before you lock the RD.
How RD and SIP compare Open when you want the side-by-side
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 Monthly deposit, rate & tenure — match your bank RD offer (typical rates ~5.5–7.5% p.a.).
- 2 Read bank maturity — the green summary under the inputs shows what the passbook quotes.
- 3 See what you keep — open “after tax” to toggle your slab and inflation, then read the return ladder.
- 4 Decide next — use the growth chart, then compare with SIP or read the RD tax guide.
Quarterly compounding, same method Indian banks use. Not tax advice — read the full RD tax, TDS & real yield guide.
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.
FAQ
Common questions
Tax, inflation, and comparisons — short answers. Use the calculator toggles for your exact numbers.
How do I calculate RD maturity after tax in India?
Compute pre-tax maturity with quarterly compounding, then tax the interest at your slab — RD interest is fully taxable. TDS at 10% may already be withheld when annual interest crosses the bank threshold, but your slab sets the final tax. Use Apply tax above for your instalment, rate, tenure, and slab — or read the RD TDS & real yield guide.
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? (RD tax calculator basics)
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.