RD Calculator
Calculate returns on your Recurring Deposit (RD) investment.
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What is RD Calculator?
An RD (Recurring Deposit) Calculator helps you estimate the maturity amount and interest earned on your recurring deposit investment. RD is a savings scheme offered by banks where you invest a fixed amount every month for a predetermined period. It's an excellent tool for disciplined savings and building a corpus over time.
Our RD Calculator calculates the maturity amount considering quarterly compounding, which is the standard method used by most banks in India. It shows you the total amount invested, total interest earned, and the final maturity amount, helping you plan your monthly savings and achieve your financial goals.
Key Features of Recurring Deposits
- Monthly Investments: Invest a fixed amount every month, starting from as low as ₹100
- Flexible Tenure: Choose tenure from 6 months to 10 years based on your goals
- Quarterly Compounding: Interest is compounded quarterly, maximizing your returns
- Guaranteed Returns: Fixed interest rates ensure predictable returns
- Loan Against RD: You can take a loan against your RD without breaking it
- Premature Closure: Available with a penalty, typically 1% reduction in interest rate
Advantages of Using Braihn's RD Calculator
- ✓Accurate Maturity Calculation
Get precise estimates using quarterly compounding formula for monthly RD investments.
- ✓Visual Investment Breakdown
See a clear breakdown of invested amount vs interest earned through interactive charts.
- ✓Goal-Based Planning
Calculate how much you need to invest monthly to achieve specific financial goals with RD.
- ✓Disciplined Savings Tool
Plan your monthly RD investments to build a habit of regular savings and wealth creation.
- ✓Free Savings Planning
Plan your RD investments without any cost. No registration required - use our calculator anytime.
Frequently Asked Questions
How is RD interest calculated?
RD interest is calculated using compound interest with quarterly compounding. Each monthly installment compounds separately based on the time remaining until maturity, and the total is the sum of all installments.
What is the minimum amount for RD?
The minimum RD amount varies by bank, typically ranging from ₹100 to ₹1,000 per month. Some banks offer RDs with as low as ₹10 per month for specific schemes.
Is RD interest taxable?
Yes, RD interest is taxable as per your income tax slab. Banks deduct TDS at 10% if interest exceeds ₹40,000 per year. You can submit Form 15G/15H to avoid TDS if your total income is below taxable limit.
Can I skip a monthly payment in RD?
Missing a monthly payment may result in penalties or account closure, depending on the bank's policy. Some banks allow a grace period, while others may close the account. Check with your bank for specific terms.
What is the difference between RD and FD?
FD requires a lump sum investment at once, while RD allows monthly investments. RD is better for those who want to save regularly, while FD is better for those who have a lump sum to invest. RD interest rates are typically slightly lower than FD rates.
Need Help with RD Investment Planning?
Connect with verified financial advisors on Braihn who can help you with RD planning, savings strategies, and all your investment-related queries.
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