RD Calculator 2026 — ₹5,000/month for 2 Years = ₹1,28,475 | Free

Bank Name	General Rate	Senior Rate	2 Yr Maturity*
SBI	6.50%	7.00%	₹1,28,475
HDFC Bank	7.00%	7.50%	₹1,29,500
ICICI Bank	7.00%	7.50%	₹1,29,500
Axis Bank	7.10%	7.85%	₹1,29,750
Post Office (5 Yr)	6.70%	6.70%	₹1,28,800

What is an RD Calculator?

A Recurring Deposit (RD) Calculator is an essential financial tool designed to help individuals plan their monthly savings efficiently. Unlike Fixed Deposits (FD) that require a lump sum investment, an RD allows you to invest a fixed amount every month for a pre-determined tenure. Our RD calculator works by taking your monthly installment, interest rate, and duration to provide a precise maturity value in seconds.

What makes CalcBaba's RD calculator unique is its quarterly compounding logic—which is the standard method used by almost every Indian bank. While many calculators use simple interest to give a rough estimate, our tool uses the bank-mandated mathematical formula to ensure the result you see matches your actual bank statement.

RD Interest Formula — How Banks Calculate

The maturity amount for a Recurring Deposit in India is calculated using the following compound interest formula:

M = R × [(1+i)ⁿ - 1] / [1 - (1+i)^(-1/3)]

MMaturity Value

RMonthly Payout

nQuarters

iQuarterly Rate

Note: Most banks compound interest quarterly (n = months/3). The quarterly rate (i) is calculated as Annual Rate / 400.

Current RD Interest Rates 2026

Interest rates for 2026 reflect the RBI's current monetary policy. Major public and private sector banks are offering competitive rates for Recurring Deposits.

SBI RD Rates: Ranges between 6.50% to 7.00% for tenures of 1–5 years. Senior citizens enjoy a special rate of 7.50% for 2-year tenures.
HDFC & ICICI RD Rates: Provide a stable 7.00% p.a. for general citizens. These are popular for their digital ease of opening accounts.
Post Office RD: Fixed at 6.70% p.a. for a 5-year tenure. This is a 100% safe, government-backed scheme ideal for rural and conservative investors.

TDS on RD Interest

Previously, RDs did not attract TDS, but that changed in 2015. Under Section 194A, banks are mandated to deduct TDS on Recurring Deposit interest if:

₹40K

The threshold for general public is ₹40,000 per financial year.

For senior citizens (60+), this limit is ₹50,000. If your interest crosses these limits, a 10% TDS (20% without PAN) is applied by the bank before crediting maturity.

RD vs FD — Which Option to Pick?

The choice between a Recurring Deposit and a Fixed Deposit usually boils down to your cash flow:

Fixed Deposit (FD)

Best for lump sum amounts. Higher interest earned because the entire principal compounds from day one. Ideal for inheritance or bonus payouts.

Recurring Deposit (RD)

Best for salaried individuals. It fosters a habit of monthly discipline. Since you invest in chunks, the total interest is less than FD but entry barrier is much lower.

RD in Hindi — आरडी कैलकुलेटर

आरडी (Recurring Deposit) क्या है और इसकी गणना कैसे करें?

आरडी कैलकुलेटर एक डिजिटल टूल है जो आपकी मासिक बचत पर मिलने वाले ब्याज की गणना करता है। यदि आप हर महीने ₹5,000 की बचत 2 साल के लिए 7% ब्याज दर पर करते हैं, तो अंत में आपको ₹1,28,475 मिलेंगे। बैंक आमतौर पर तिमाही आधार पर (Quarterly Compounding) ब्याज जोड़ते हैं। वरिष्ठ नागरिकों को अक्सर 0.50% अतिरिक्त ब्याज मिलता है। यदि आपका साल भर का कुल ब्याज ₹40,000 से अधिक है, तो उस पर TDS लागू होता है।

Frequently Asked Questions

An RD (Recurring Deposit) calculator is a free financial tool that helps you calculate the maturity amount and interest earned when you invest a fixed amount every month. It uses the quarterly compounding formula adopted by most Indian banks (SBI, HDFC, ICICI). It helps you plan small monthly savings to meet a future financial goal like an annual vacation or a down payment.

As of March 2026, SBI RD interest rates range from 6.50% to 7.00% for the general public, depending on the tenure. For 2 years, the rate is approximately 7.00% p.a. Senior citizens get an additional 0.50%, making the rate 7.50%. These rates are subject to periodic revision by the bank.

Banks in India calculate RD interest using the quarterly compounding formula. The maturity amount is calculated as: M = R * [(1+i)^n - 1] / [1 - (1+i)^(-1/3)]. Here, R is the monthly installment, i is the quarterly interest rate (annual rate / 400), and n is the total number of quarters in the tenure.

Yes, interest earned on Recurring Deposits is fully taxable under the "Income from Other Sources" head. Banks also deduct TDS (Tax Deducted at Source) at 10% if the total interest earned across all your deposits in a single bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G or 15H to prevent TDS.

The minimum tenure for an RD in most Indian banks is 6 months. The tenure can be chosen in multiples of 3 months, up to a maximum of 120 months (10 years). Post Office RDs typically have a fixed tenure of 5 years (60 months).

FD (Fixed Deposit) is better if you have a lump sum amount to invest at once, as you earn interest on the entire amount from day one. RD (Recurring Deposit) is better if you want to save a small portion of your monthly income. On a mathematical basis, for the same total investment, an FD will give higher absolute returns because the full principal earns interest for the entire duration.

Any Indian resident above the age of 18 can open an RD account. Minors can also have RD accounts operated by their parents or guardians. HUFs, firms, and companies can also open RD accounts in some banks. NRIs can open NRE or NRO RD accounts.

Yes, most banks allow premature withdrawal of RD accounts. However, they usually charge a penalty, which is often 0.5% to 1% lower than the interest rate applicable for the period the deposit actually remained with the bank. Partial withdrawals are generally not allowed for RDs.

Related Financial Calculators

EMI Calculator Home Loan EMI Calculator Car Loan EMI Calculator Personal Loan EMI Calculator SIP Calculator GST Calculator