Recurring Deposit (RD) Calculator

Enter your monthly deposit, interest rate and tenure. The calculator shows the total amount you put in, the interest earned, and the maturity value, with Section 194A TDS threshold alerting.

A ₹5,000 monthly recurring deposit for 3 years at 7.00% annual interest yields ₹2,00,686 on maturity, earning ₹20,686 in total interest on ₹1,80,000 deposited.

Calculation Method

Calculated using the Indian Banks' Association quarterly compounding convention.

Monthly deposit

₹

Interest rate (per year)

Bank benchmark: enter your bank's quoted RD rate

Tenure (months)

Senior citizen (60+ years)Most Indian banks offer a 0.50% interest premium and a higher ₹50,000 TDS threshold.

Maturity value

₹2,00,686

at 36 months

Total interest

₹20,686

Total deposited

₹1,80,000

Monthly instalment

₹5,000

TDS Threshold (Section 194A):

Bank interest up to ₹40,000 per financial year across all branches is exempt from TDS at source for individual depositors.

Deposits vs interest earned

Total₹2.01 L

Total deposited: ₹1,80,000
Total interest: ₹20,686

Year-by-Year Recurring Deposit Schedule

Year-by-Year Recurring Deposit Schedule
Period	Deposited (Yr)	Deposited to Date	Interest (Yr)	Balance
Year 1 (12 mo)	₹60,000	₹60,000	₹2,311	₹62,311
Year 2 (24 mo)	₹60,000	₹1,20,000	₹6,788	₹1,29,099
Year 3 (36 mo)	₹60,000	₹1,80,000	₹11,588	₹2,00,686

Maturity value

₹2,00,686

Total interest: ₹20,686

What it is:: A calculator for monthly recurring bank and post office deposits.
What it calculates:: The final maturity payout, total interest earned, and a year-by-year balance schedule.

Key Assumptions

Instalments are deposited on time every month without defaults or penalties.
Bank RD interest is compounded quarterly as per IBA standards.
Post Office RD follows the statutory 60-month tenure.

How it works

A recurring deposit lets you invest a fixed sum every month for a chosen period. Unlike a simple savings account, banks in India compound RD interest quarterly under Indian Banks' Association (IBA) rules.

Each monthly deposit earns interest for the exact number of months remaining until maturity. The first deposit earns interest for the full tenure; the final deposit earns interest for just one month.

Post Office RD operates on a statutory 5-year (60 months) tenure with quarterly compounding backed by a sovereign government guarantee.

Under Section 194A of the Income Tax Act, banks deduct 10% TDS if total interest from deposits across all branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), unless Form 15G or 15H is submitted.

Formula

M = SUM_{m=1..N} [ P x (1 + i)^((N - m + 1) / 3) ]

M: = maturity value at end of tenure
P: = monthly deposit instalment in rupees
i: = quarterly interest rate, equal to annual rate / 400
N: = total tenure in months
m: = month index of each deposit from 1 to N

For tenures that are exact multiples of 3 months, this is mathematically identical to the closed-form IBA cumulative deposit formula.

Example calculation

₹5,000 a month for 3 years at 7.00% (Bank) vs 5 years at 6.70% (Post Office)

Monthly deposit: ₹5,000
Total deposited over 3 years (Bank): ₹1,80,000
Interest earned over 3 years (Bank): ₹20,686
Maturity value after 3 years (Bank): ₹2,00,686
Total deposited over 5 years (Post Office): ₹3,00,000
Maturity value after 5 years (Post Office): ₹3,56,829

Frequently asked questions

How is RD interest calculated in Indian banks?

Indian banks calculate recurring deposit interest using quarterly compounding based on Indian Banks' Association (IBA) guidelines. Each monthly instalment is treated as a separate deposit that earns compound interest for the remaining quarters of the tenure.

What is the difference between Bank RD and Post Office RD?

Bank RDs offer flexible tenures from 6 months to 10 years, with rates set by individual banks. Post Office RD has a fixed statutory tenure of exactly 5 years (60 months), with rates set quarterly by the Government of India and backed by a sovereign guarantee.

Is TDS deducted on recurring deposit interest?

Under Section 194A, banks deduct 10% TDS if total deposit interest across all branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can avoid bank TDS by submitting Form 15G (or Form 15H for senior citizens) if your total taxable income is below the basic exemption limit. For Post Office RD, no TDS is deducted at source, but interest must be reported in your income tax return and is taxed at your slab rate.

Can I withdraw my RD before maturity?

Yes, but banks and the post office charge a premature withdrawal penalty, typically reducing the interest rate by 0.5% to 1.0% from the rate applicable for the period the deposit actually ran.

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Authoritative Sources

Indian Banks' Association (IBA) - Deposit Compounding Standards· verified 1 October 2026
Department of Posts - 5-Year National Savings Recurring Deposit Account· verified 1 October 2026

Reviewed by Pradipta Ray, Editor · Updated 1 October 2026