RD Calculator 2025 – Smarter Savings Made Simple

A Recurring deposit (RD) calculator takes the following parameters into account before calculating the maturity amount that will be collected by the depositor at the end of the term period.

• The Principal amount that was deposited at the time of opening the recurring deposit account.
• Date on which the recurring deposit account was opened.
• The Interest rate applicable for the term period selected by the user.
• Whether the user is a senior citizen or not as most banks provide a higher rate of return for senior citizens for a recurring deposit account.

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Top Bank RD Interest Rates in India

The table listed below provides the interest rates offered by recurring deposits of the some top banks operating in the country:

Bank Name	Interest rate range
SBI RD Interest Rates	6.50%p.a. to 7.10%p.a.
HDFC Bank RD Interest Rates	4.50%p.a. to 7.40%p.a.
ICICI Bank RD Interest Rates	4.75%p.a. to 7.25% p.a.
Kotak RD Interest Rates	6.00% p.a.to 7.20% p.a.
Union Bank of India RD Interest Rates	5.00% p.a. to 7.25% p.a.
Axis Bank RD Interest Rates	5.75% p.a.to 7.25% p.a.
Central Bank of India RD Interest Rates	6.25% p.a. to 7.00% p.a.
Bank of Maharashtra RD Interest Rates	5.25% p.a. to 6.75% p.a.

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How to Use the RD Calculator?

RD Calculator is used to determine the amount of money you will receive once your RD matures. You can use the RD Calculator offered by several banks or a simple recurring deposit formula to determine the amount. Using the RD Calculator can help you get the results immediately and the process is hassle-free. The interest that is generated from an RD account is compounded quarterly.

Also, Check - FD Calculator

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How to Determine RD Maturity Amount

The RD maturity amount is calculated based on three variables. An RD account calculator applies these variables to a standard formula to get the precise maturity amount.  

The formula for RD maturity is given below: 

A = P*(1+R/N)^(Nt) 

Here,  

A = Maturity amount 

P = RD installment per month 

R = RD interest rate (in percentage) 

N = Compounding frequency 

T = Tenure 

This is the usual formula for calculating the RD maturity amount, regardless of the amount invested or the tenure. All you need to do is enter the variables. 

How to Calculate the RD Interest Rate?

The interest amount on recurring deposits is usually compounded on a quarterly basis:

The following RD Calculator Formula is used by banks to calculate how much the interest component on a recurring deposit will be at maturity:

    M =R[(1+i) n - 1]/1-(1+i) (-1/3)

    Note:

    M = Maturity value of the RD

    R = Monthly installment credited in the RD

    n = Number of quarters (in the total tenure)

    i = Rate of Interest / 400

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Advantages of Using the RD Calculator

Some of the main advantages of using the RD Calculator are mentioned below

1. Accurate estimations are provided.
2. Saves time and is convenient.
3. You can plan your finances in the long run.

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Step-by-Step Guide to Using the RD Calculator Online

The step-by-step procedure to use the  RD Calculator in online  is mentioned below

1. Enter the amount that you will deposit every month.
2. Enter the tenure of your RD investment.
3. In case you are using the RD Calculator offered by banks, the rate of interest will be given. If you are using the RD Calculator offered by third-party websites, the interest rate must be entered.
4. Click on 'Calculate'. The results will be displayed immediately.

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FAQs on RD Calculator

• What are the benefits of using the RD calculator?

  The RD calculator is a simple online tool that produces results in seconds. It also saves time by eliminating the need to perform complex calculations. You can use this calculator multiple times to compare the returns from different recurring deposit investments.

• Why is RD returns calculation challenging, and how can an RD calculator be beneficial?

  RD returns involve complex calculations due to quarterly compounding and various variables. An RD calculator simplifies this process, providing investors with accurate maturity amounts effortlessly. 

• What is a Recurring Deposit (RD), and how does it differ from Fixed Deposits (FDs)?

  A Recurring Deposit requires fixed monthly deposits, creating a habit of regular investment, unlike lump sum amounts in Fixed Deposits. RDs foster regular savings and discipline among earners.

• How is the interest earned on an RD account calculated?

  The interest that will be earned on an RD account is calculated by applying the compound interest formula. Even though deposits must be made every month, the interest is compounded quarterly.

• How many times can I use the RD calculator?

  You can use the RD calculator as many times as you want. 

• Will I have to pay a penalty in case there is a delay in the monthly deposit?

  Yes, a penalty will be levied in case there is a delay in the monthly payment. Depending on the bank and the period of delay, the penalty that must be paid will vary.

• When is simple interest calculated with regard to recurring deposits?

  If you open a recurring deposit account in the middle of an ongoing financial quarter say in the month of May, the deposited amount will earn simple interest until the end of June. Following that, the interest will be compounded as a new quarter starts.

• Is it true that inflation always affects the interest rate on recurring deposits?

    No, moderate inflation has no effect on investment rates, but high inflation can cause the recurring deposit rates to fall. 

• Is the interest that is generated from the RD account taxable?

  Yes, the interest that is earned from an RD account is taxable.

• Is there any additional interest provided for senior citizens?

  Yes, most banks provide an additional interest rate for senior citizens.

• Which form should I submit if I wish to avoid TDS?

  You will need to submit Form 15H or 15G to avoid deduction of TDS.

• Which is the formula used to calculate compound interest on Recurring Deposits?

  The formula used is A = P(1+r/n) ^ nt, where 'A' represents final amount procured, 'P' represents principal, 'r' represents annual interest rate, 'n' represents the number of times that interest has been compounded, 't' represents the tenure.

• Is the interest paid on RDs compounded quarterly?

  Yes, the interest paid on RDs is compounded quarterly.

• For calculation of simple interest, which formula is used?

  The formula used for calculation of simple interest is I = P x R x T where 'I' stands for Interest, 'p' stands for principal, 'r' stands for annual interest rate, and 't' stands for tenure of the deposit.

• Are the interest rates on an RD pre-fixed?

  Yes, like fixed deposits, the interest rates on an RD account are fixed and vary based on tenure

• What happens if I do not pay my RD instalment?

    The RD account is usually active if you fail to pay the instalment once. Some banks, however, will close your RD account if you do not pay a certain minimum number of instalments.  

• Can I add a nominee to my RD account?

  Yes, you can add a nominee to your RD account.