Monthly compounding
All tenures supported
Free & instant
Enter your monthly deposit, interest rate, and tenure to see maturity amount, interest earned, and effective yield.
| Bank / Institution | Regular Citizens (p.a.) | Senior Citizens (p.a.) |
|---|---|---|
| SBI | 6.50 – 7.00% | 7.00 – 7.50% |
| HDFC Bank | 6.10 – 7.25% | 6.60 – 7.75% |
| ICICI Bank | 6.00 – 7.25% | 6.50 – 7.80% |
| Axis Bank | 6.00 – 7.20% | 6.75 – 7.95% |
| Post Office RD | 6.70% | 6.70% |
| Kotak Bank | 6.20 – 7.40% | 6.70 – 7.90% |
You commit to depositing a fixed amount (minimum ₹100) each month for the chosen tenure. This enforces a savings habit without needing a lump sum.
Unlike mutual funds or equities, RD returns are guaranteed. The interest rate is locked at the time of opening the account, protecting you from rate fluctuations during the tenure.
Interest compounds quarterly (banks) or annually (post office). Our calculator uses monthly compounding to give you the most accurate figure for bank RDs.
A Recurring Deposit (RD) is a savings scheme offered by banks and post offices where you deposit a fixed amount every month for a predetermined tenure. At maturity, you receive your total deposited amount plus compound interest. RDs are ideal for salaried individuals who want to save regularly.
RD interest is calculated using compound interest with monthly compounding. The formula is: Maturity = Σ P × (1 + r)^(n−i+1) for each monthly instalment, where P is the monthly deposit, r is the monthly interest rate (annual rate ÷ 12), and n is the total tenure in months.
Yes, interest earned on an RD is fully taxable in India as "Income from Other Sources" at your applicable income tax slab rate. Banks deduct TDS at 10% if the total interest across all RDs in a branch exceeds ₹40,000 per year (₹50,000 for senior citizens).
The minimum tenure for a bank RD is 6 months. Post office RDs have a fixed tenure of 5 years. Most banks allow tenures ranging from 6 months to 10 years in monthly increments.
Yes, most banks allow premature closure of RDs subject to a penalty (typically 0.5% to 1% reduction in interest rate). Post Office RDs can be closed prematurely after 3 years. Partial withdrawal is not allowed from RDs.
SBI RD interest rates for 2025-26 range from 6.50% to 7.00% per annum for regular citizens depending on tenure, and 7.00% to 7.50% for senior citizens. Rates are updated periodically — check the SBI website for the latest rates.