RD (Recurring Deposit) Calculator

RD interest is compounded quarterly. Maturity value = R × [((1 + r/4)^(4n) - 1) / (1 - (1 + r/4)^(-1/3))], where R is monthly instalment, r is annual rate, n is years. The exponent 4n reflects quarterly compounding over n years.

Yes — RD interest is fully taxable at slab rate. TDS at 10% applies if interest exceeds ₹40,000 from banks / ₹5,000 from post office in a financial year. Form 15G/15H can be submitted to avoid TDS if total income is below the rebate threshold.

Premature closure is allowed with penalty of 1-2% on the rate for most banks. The penalty applies from the start of the RD, not just on the remaining tenure. Post-office RD has a slightly higher penalty structure. Calculator assumes full-term RD for maturity, subtract penalty manually for early withdrawal.

RD is a bank product with guaranteed returns (returns depend on bank rate, currently 6.5-8%). SIP is a mutual fund route with market-linked returns (typically 11-15% for equity). RD suits capital protection; SIP suits wealth creation.

NRIs can open RD accounts in NRE / NRO / FCNR designations. NRE RD interest is tax-free in India; NRO RD interest attracts TDS at 30% + cess. FCNR RDs are in foreign currency — interest is also exempt. Calculator supports NRI flag for accurate TDS rule.

For lump-sum parking over a fixed tenure, FD wins (slightly higher rate, no deposit obligation). For monthly saving with discipline (e.g., saving for a goal ₹5,000/month), RD is ideal — lumpsum FD would require saving up first. Calculator supports both for direct comparison.