RBI Quarterly Compounding Model · Zero Market Risk · 100% Zero Bias

Recurring Deposit (RD) Calculator

Calculate recurring deposit maturity value and quarterly compounding interest earned on monthly bank savings.

RBI Regulation Standard: Interest is compounded quarterly as per RBI banking regulations: each monthly installment earns interest for its individual remaining tenure.

Monthly Deposit Amount

₹

₹5,000

₹500₹1 L

Presets:

Interest Rate (% p.a.)

3 %12 %

Presets:

Tenure (Years)

1 Yr10 Yr

Presets:

Senior Citizen Privilege (+0.50%)Applicable for depositors aged 60 years and above

7.00% p.a.

Total Amount Payable

₹2,00,686

Due after 3 Years (36 monthly installments)

Total Deposits₹1,80,000

Total Interest₹20,686

Net Corpus ValueTotal Savings + Compounded Interest

₹2,00,686

Maturity Value₹2,00,686

Total Deposits

₹1,80,000(90%)

Total Interest

₹20,686(10%)

Recurring Deposit Milestone Progression

Compare total cumulative installments and interest accumulated across various milestone horizons.

Milestone	Total Deposits	Interest Earned	Maturity Amount	Interest Growth %

RBI Compounding Math

Each installment compounds quarterly for its individual remaining tenure. Your 1st deposit earns full tenure interest, while the final deposit earns 1 month of interest.

Disciplined Monthly Habit

RD offers bank-guaranteed returns without market volatility, making it an ideal disciplined vehicle for fixed short-term goals like insurance premiums, tuition, or festive expenses.

Missed Installment Penalty

Banks charge a nominal penalty (₹1.5 to ₹2 per ₹100) for delayed payments. Consistently missing installments can lead to premature account closure by the lender.

Frequently Asked Questions

How is Recurring Deposit (RD) interest calculated in India?

Indian banks compound RD interest on a quarterly basis. Each monthly installment functions as an individual deposit earning interest for the specific number of months remaining until overall maturity.

What happens if I delay or miss an RD monthly installment?

Banks levy a nominal penalty (typically ₹1.50 to ₹2 per ₹100 of installment amount per month) for delayed payments. Defaulting on multiple consecutive installments may result in premature account closure.

Is Recurring Deposit interest taxable under Indian Income Tax rules?

Yes. RD interest is treated identically to FD interest: it is fully taxable under 'Income from Other Sources' at your slab rate and subject to 10% TDS if aggregate annual bank deposit interest exceeds ₹40,000 (₹50,000 for seniors).