# RD Calculator

RD stands for Recurring Deposit. It is a type of savings account where the depositor makes regular fixed deposits over a specified period of time, usually ranging from 6 months to 10 years. The depositor is required to make a fixed deposit each month, and in return, the bank pays a higher interest rate on the deposit as compared to a regular savings account.

Monthly investment

Interest rate

Time Period (Yrs)

Calculate

Total Investment

₹ 1,20,00,000

Estimated returns

₹ 53,70,560

Maturity Value

₹ 1,73,70,560

How to use this calculator?

Recurring Deposit

It is a type of savings account where the depositor makes regular fixed deposits over a specified period of time. The interest rate offered on recurring deposits is generally higher than that offered on savings accounts but lower than the interest rate offered on fixed deposits.

Find out how much I can earn with RD

You can use the FundsIndia RD calculator to calculate your RD returns in a matter of seconds.

Tax Implications on RD

The interest earned on a Recurring Deposit (RD) is taxable. The rate of tax depends on the individual's tax slab.

Premature withdrawal implications

Premature withdrawal leads to loss of interest and a penalty will be imposed. The penalty rate varies from partner to partner.

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What is Recurring Deposit?

It is a type of savings account where the depositor makes regular fixed deposits over a specified period of time, usually ranging from 6 months to 10 years. The depositor is required to make a fixed deposit each month, and in return, the bank pays a higher interest rate on the deposit as compared to a regular savings account. The interest rate offered on recurring deposits is generally higher than that offered on savings accounts but lower than the interest rate offered on fixed deposits.

What is the lock-in period of RD investment?

The lock-in period of an RD is usually the same as the deposit period, which can range from 6 months to 10 years.

What is the minimum investment to book an RD?

The minimum investment of RDs varies from one bank to another.

What are the tax implications of an RD investment?

The interest earned on a Recurring Deposit (RD) is taxable. The rate of tax depends on the individual's tax slab, and the interest earned is added to the individual's total taxable income. Additionally, TDS (Tax Deducted at Source) is applicable on RD interest if the interest earned in a financial year is more than INR 40,000 for an individual or INR 50,000 for a Hindu Undivided Family (HUF). In such cases, TDS will be deducted at the rate of 10% before crediting the interest to the account.

How can you use the RD calculator?

This calculator is very intuitive as it only takes the amount you are investing, the tenure and interest rate and can give you the earnings at the time of maturity and also year on year growth via a graph.

How does the RD calculator work?

It uses the following logic

A = (MI * ((1+r/400)^quarters - 1))/(1 - (1+r/400)^(-1/3))

Where,

A = Total amount by the end of the period

MI = Monthly recurring deposit amount

r = Annual rate of interest

quarters = number of quarters in the mentioned period

Where,

A = Total amount by the end of the period

MI = Monthly recurring deposit amount

r = Annual rate of interest

quarters = number of quarters in the mentioned period

What happens if I break my RD?

Breaking of RD is withdrawing the deposit before maturity. This is not advisable as it leads to loss of interest and a penalty will be imposed. The penalty rate varies from partner to partner. Please read all documents carefully before investing.

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