Financial calculators by Dailytrades
Plan your financial goals with tools built by Dailytrades - India‘s platform for trading and investment insights.
RD Calculator
Calculate total maturity value and interest earned on your monthly Recurring Deposit (RD) investment.
Understanding Recurring Deposit (RD)
A Recurring Deposit (RD) is a popular low-risk term deposit option provided by Indian banks and post offices. It enables individuals to deposit a fixed sum every month for a pre-determined tenure (ranging from 6 months to 10 years) and earn quarterly compounded interest rates guaranteed by the bank.
RDs are ideal for short-term goals like saving for a vacation, festive expenses, or building an emergency reserve. Since RD interest is taxable based on your income tax slab, high-bracket taxpayers should compare post-tax RD returns with Debt Mutual Funds or Arbitrage Funds for better tax efficiency.
How RD Interest is Calculated
Most commercial banks in India compound interest on Recurring Deposits on a quarterly basis using the formula:
Key Benefits of Recurring Deposit (RD)
- Guaranteed Capital Protection: Fixed returns backed by bank security, insured up to ₹5 Lakh by DICGC.
- Disciplined Monthly Savings: Encourages habitual saving without requiring a large one-time lump sum.
- Flexible Tenures: Choose deposit durations from 6 months up to 10 years based on your financial goals.
- Senior Citizen Bonus: Senior citizens usually receive an additional 0.50% p.a. interest rate.