# RD Calculator > A recurring deposit compounds quarterly on each monthly instalment, so ₹5,000 a month for 60 months in a Post Office RD at 6.7% grows to ₹3,56,829, of which ₹56,829 is interest. Enter any bank or post office rate and a tenure in months to see your maturity value. - Interactive calculator: https://calculatorswithsteps.com/rd-calculator - Category: India Finance Calculators - Last updated: 2026-11-10 - Publisher: Calculators With Steps (calculatorswithsteps.com) ## How to use the RD calculator 1. **Monthly deposit** – the instalment you will pay every month. Post Office RDs start at ₹100 a month, in multiples of ₹10. 2. **Interest rate** – the bank's RD rate for your tenure, or 6.7% for the Post Office 5-year RD (October–December 2026). 3. **Tenure** – the number of monthly instalments. A Post Office RD always runs 60 months; banks usually offer 6 to 120 months. The result shows the maturity amount, how much you deposited and how much came from interest, the maturity value per ₹100 a month, and a year-by-year table. ## RD formula (quarterly compounding) Indian banks and the post office compound RD interest every quarter, while you deposit every month. The standard formula is: **M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)]** - **M** = maturity value - **R** = monthly instalment - **i** = quarterly rate = annual rate ÷ 400 - **n** = number of quarters = months ÷ 3 Why the odd-looking denominator? Each instalment earns interest for a different number of months. The last one earns for 1 month, the one before for 2 months, and the first for the full term. With quarterly compounding, one month of growth is (1 + i)^(1/3), so the maturity value is the sum R × (1 + i)^(1/3) + R × (1 + i)^(2/3) + … + R × (1 + i)^n. Adding up that geometric series gives the formula above. ## Worked example: Post Office RD ₹5,000 a month for 60 months at 6.7%: - i = 6.7 ÷ 400 = 0.01675 and n = 60 ÷ 3 = 20 quarters - M = 5,000 × [(1.01675)^20 − 1] ÷ [1 − (1.01675)^(−1/3)] = **₹3,56,829** - Deposited: 5,000 × 60 = ₹3,00,000, so interest = **₹56,829** | Post Office RD at 6.7% for 5 years | Total deposited | Maturity value | | --- | --- | --- | | ₹100 a month | ₹6,000 | ₹7,136.58 | | ₹2,000 a month | ₹1,20,000 | ₹1,42,732 | | ₹5,000 a month | ₹3,00,000 | ₹3,56,829 | | ₹10,000 a month | ₹6,00,000 | ₹7,13,658 | ## Bank RD examples Bank RDs have flexible tenures, and the formula is the same. At 7%, ₹5,000 a month for 12 months matures at ₹62,311 (₹2,311 interest), and for 36 months at ₹2,00,686 (₹20,686 interest). Notice how interest grows faster than the deposits: tripling the tenure multiplies interest by almost nine, because more instalments stay invested for longer. ## Post Office RD rules - **Minimum deposit:** ₹100 a month, then any amount in multiples of ₹10. There is no maximum. - **Tenure:** 5 years (60 instalments). The account can be continued for another 5 years at maturity, with or without deposits. - **Premature closure:** allowed after 3 years, but interest is then paid at the savings account rate of 4%. - **Rate:** fixed for the life of the account at the rate that applied when you opened it. The current rate is 6.7%, compounded quarterly. ## RD vs FD vs SIP An RD is the monthly version of a fixed deposit: same safety, same tax treatment, but you build the amount bit by bit. If you already have a lump sum, an [FD](https://calculatorswithsteps.com/fd-calculator) earns more because the whole amount is invested from day one. If your goal is 5 years or more away and you can accept ups and downs, a mutual fund [SIP](https://calculatorswithsteps.com/sip-calculator) has historically earned more than an RD, though without a guarantee. For long-term tax-free savings, look at the [PPF calculator](https://calculatorswithsteps.com/ppf-calculator). ## Tips for recurring deposits - **Set up auto-debit** for the day after your salary credit. Missed instalments can attract a penalty and delay maturity. - **Match the tenure to the goal**, such as a 12-month RD for a holiday or school fees due next year. - **Remember tax.** In the 30% slab, with 4% cess, a 6.7% RD earns about 4.6% after tax. ## Frequently asked questions ### What is an RD in a bank? A recurring deposit (RD) lets you deposit a fixed amount every month for a fixed term, usually 6 months to 10 years, and earn a fixed interest rate on it. At maturity you get all your instalments back with interest, compounded quarterly. ### How is RD interest calculated? Banks and India Post compound RD interest quarterly. The maturity value is M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)], where R is the monthly deposit, i is the annual rate ÷ 400 and n is the number of quarters. ₹5,000 a month for 60 months at 6.7% matures at ₹3,56,829. ### What is the Post Office RD interest rate now? The 5-year Post Office Recurring Deposit pays 6.7% a year, compounded quarterly, for October to December 2026. The government reviews the rate every quarter, but the rate on your account is fixed when you open it. ### What is the maturity amount of ₹100 a month in a Post Office RD? At 6.7%, ₹100 a month for 5 years (₹6,000 deposited) matures at ₹7,136.58. Multiply by your monthly amount: ₹2,000 a month gives ₹1,42,732 and ₹10,000 a month gives ₹7,13,658. ### Can I close a Post Office RD before 5 years? Yes, after 3 years. On premature closure, interest is paid at the post office savings account rate (4%) instead of the RD rate, so you lose most of the RD benefit. You can also extend the account for another 5 years at maturity. ### Is RD interest taxable? Yes. RD interest is taxed at your slab rate, and bank RD interest is counted with your FD interest for TDS. Banks deduct 10% TDS if your total interest in a financial year exceeds ₹50,000 (₹1 lakh for senior citizens). ### Is an RD better than a SIP? They suit different goals. An RD gives a guaranteed, fixed return and suits savings for the next 1 to 3 years. A mutual fund SIP can earn more over 5 years or longer, but its returns are not guaranteed and can be negative in some years. ## Sources - [National Savings Institute – Interest rates on National Savings Schemes](https://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=132) - [National Savings Institute – National Savings Schemes at a glance](https://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=27) > Disclaimer: results are estimates for information and education, not financial advice. Confirm important decisions with a qualified professional.