RD Calculator 2026 — Recurring Deposit Maturity Value

India's most detailed RD calculator. Compute maturity value, total interest earned, TDS impact, and real post-tax return — instantly, for any bank or Post Office RD.

📌 Updated June 2026 🏠 DICGC Insured up to ₹5L 📋 Includes Tax (TDS) ⏰ Quarterly Compounding ✅ Post Office RD: 6.70%
RD Calculator

See How Your Monthly Savings Grow

Adjust the sliders and your RD maturity value updates live — including TDS and post-tax return.

₹10,000
₹500₹2 Lakh
7.5%
3%9.5%
12 Months
6 Months10 Years
+4%estimated gain
Deposited Interest
Total Deposited₹1.20 L
Interest Earned+₹4,912
Tax on Interest-₹982
Post-Tax Eff. Rate6.00% p.a.
Maturity Value₹1.24 L
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VR
Vikash Royal ARN-356458
B.E. | MBA Finance | NISM Certified | 7+ Years in Finance

🏢 Top Bank RD Interest Rates — June 2026

Rates for monthly recurring deposits below ₹3 crore. Senior citizens typically earn an additional 0.50% p.a. All RDs use quarterly compounding unless stated.

Bank / Institution Type 6M 1 Year 2 Years 3 Years 5 Years Senior Citizen
SBI PSU Public 5.50% 6.80% 7.00% 6.75% 6.50% +0.50%
HDFC Bank PVT Private 4.50% 6.60% 7.00% 7.20% 6.40% +0.50%
ICICI Bank PVT Private 4.75% 6.70% 7.00% 6.50% 6.50% +0.50%
Axis Bank PVT Private 5.75% 6.70% 7.10% 7.10% 7.00% +0.50%
Kotak Mahindra PVT Private 5.00% 7.10% 6.80% 6.80% 6.20% +0.50%
Bank of Baroda PSU Public 5.50% 6.85% 7.15% 7.15% 6.50% +0.50%
Federal Bank PVT Private 5.00% 6.80% 7.25% 7.25% 6.60% +0.50%
AU Small Finance SFB Small Finance 6.25% 7.25% 7.50% 7.50% 7.25% +0.50%
Jana SFB SFB Small Finance 6.50% 7.50% 7.77% 7.77% 7.50% +0.50%
Suryoday SFB SFB Small Finance 6.75% 7.75% 8.00% 8.10% 8.00% +0.50%
Post Office RD Govt. Sovereign N/A N/A N/A N/A 6.70% Same rate

All bank RDs use quarterly compounding. Post Office RD is a 5-year only scheme at 6.70% quarterly compounding — backed by sovereign government guarantee with no DICGC cap. DICGC insures bank deposits up to ₹5 lakh per depositor per bank. Rates indicative as of June 2026 — verify on the bank's official website before investing. Senior citizen rates are generally 0.50% above general rates.

💡 4 Smart RD Strategies for 2026

Maximise your RD returns with these proven tactics used by savvy Indian investors.

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Open Multiple RDs — Ladder Strategy
Instead of one ₹10,000/month RD, open three RDs of ₹5,000/month each for 1, 2, and 3-year tenures. Each year one matures — giving you liquidity annually. You earn higher rates on longer tenures and avoid premature withdrawal penalties. Reinvest each maturing RD at the best prevailing rate.
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Small Finance Banks for Higher Rates
Small Finance Banks (AU, Jana, Suryoday) offer RD rates 1–1.5% higher than PSU banks — up to 8.10% vs SBI's 6.80%. They are RBI-regulated and DICGC insured up to ₹5L. If your RD amount is below ₹5L per bank, the extra 1% p.a. over 3 years on ₹10,000/month adds ₹2,300+ extra interest at zero additional risk.
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Submit Form 121 to Avoid TDS
From April 2026, the new Form 121 replaces Form 15G (below 60 years) and Form 15H (senior citizens) under the Income-tax Act 2025. Submit at the start of each financial year to your bank to avoid 10% TDS on RD interest if your total income is below the taxable limit. This keeps your full maturity value intact without waiting for ITR refund.
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Loan Against RD — Avoid Premature Withdrawal
Never break your RD early if you need temporary funds. Banks offer loans against RD at just 1–2% above your RD interest rate (e.g., if RD earns 7.5%, loan costs ~8.5–9.5%). Your RD continues earning 7.5% uninterrupted and you only pay the small net difference. Far cheaper than premature withdrawal with 0.5–1% penalty plus rate reduction.

⚖️ RD vs FD vs SIP — Complete Comparison 2026

All three are popular savings instruments. Here's when each makes sense for Indian investors.

Parameter RD (Recurring Deposit) FD (Fixed Deposit) SIP (Mutual Fund)
Investment Mode Monthly instalments Lumpsum only Monthly instalments
Returns 6.0–8.1% p.a. (guaranteed) 6.0–8.1% p.a. (guaranteed) 12–15% CAGR (historical)
Risk Zero market risk Zero market risk Market risk (equity)
Ideal Tenure 6 months – 3 years 1 month – 10 years 5+ years for best results
Taxation Interest taxed at slab rate Interest taxed at slab rate LTCG 12.5% after 1 year
Post-Tax Return (30% slab) ~5.25% at 7.5% ~5.25% at 7.5% ~12% after LTCG
Liquidity Penalty on premature exit Penalty on premature exit Anytime (open-ended)
Capital Safety DICGC insured up to ₹5L DICGC insured up to ₹5L NAV can fall short-term
Minimum Amount ₹100/month (Post Office) ₹1,000 (most banks) ₹500/month SIP
Who Needs a Lumpsum? No — monthly deposits Yes — invest upfront No — monthly SIP
Best For Salaried savers, short goals (1–3 yr) Lumpsum investors, short goals Retirement, 5–30 yr wealth creation
📌 Pocket Wealth Verdict: RD is ideal for salaried investors who want to save a fixed monthly amount with zero risk for a specific short-term goal (vacation, appliance, down payment). For the same monthly amount over 5+ years, a SIP in equity mutual funds will build significantly more wealth. Consider an RD for your 1–2 year goals and SIP for everything beyond. Speak to Vikash Royal (ARN: ARN-356458) to find your ideal split.

📈 RD Maturity Value Table — ₹10,000/Month at Popular Rates

Quarterly compounding. Pre-tax maturity values for quick reference across different tenures and rates. Use the calculator above for your exact figures.

Tenure Total Deposited @ 6.50% @ 7.00% @ 7.50% @ 8.00% @ 8.10%
6 Months ₹60,000 ₹61,955 ₹62,096 ₹62,238 ₹62,381 ₹62,395
1 Year ₹1.20 L ₹1.25 L ₹1.25 L ₹1.25 L ₹1.25 L ₹1.25 L
2 Years ₹2.40 L ₹2.57 L ₹2.58 L ₹2.59 L ₹2.60 L ₹2.60 L
3 Years ₹3.60 L ₹3.98 L ₹4.01 L ₹4.04 L ₹4.07 L ₹4.07 L
5 Years ₹6.00 L ₹7.10 L ₹7.19 L ₹7.29 L ₹7.39 L ₹7.40 L
7 Years ₹8.40 L ₹10.85 L ₹11.09 L ₹11.33 L ₹11.58 L ₹11.62 L
10 Years ₹12.00 L ₹17.20 L ₹17.75 L ₹18.33 L ₹18.93 L ₹19.03 L

All values use quarterly compounding formula applied to each monthly instalment. Pre-tax figures — deduct applicable TDS at your slab rate. 8.10% is the highest available RD rate as of June 2026 (Suryoday SFB). Post Office RD is fixed at 5 years only at 6.70%.

❓ Frequently Asked Questions on RD

Answers to the most searched questions about Recurring Deposits in India.

As of June 2026, Suryoday Small Finance Bank leads with RD rates up to 8.10% p.a. and Jana SFB at 7.77%. Among private banks, Federal Bank offers 7.25% and HDFC Bank 7.20% for 3-year tenures. Public sector banks like SBI offer up to 7.00%. For completely safe sovereign-backed RD, Post Office RD offers 6.70% with government guarantee. Small Finance Banks are RBI-regulated and DICGC-insured up to ₹5L — safe for amounts within that limit.
RD interest is calculated using quarterly compounding applied separately to each monthly instalment. For each instalment: M = P × (1 + r/4)^(4×t), where P = monthly instalment, r = annual rate, t = remaining tenure in years for that instalment. The total maturity = sum of all instalment maturities.

Example: ₹10,000/month at 7.5% for 12 months — the first instalment compounds for 12 months, the second for 11 months, and so on. Total maturity ≈ ₹1,24,912. Use the calculator above for instant results.
FD (Fixed Deposit): One-time lumpsum investment. The full principal earns interest from day one — more interest earned for the same total amount.

RD (Recurring Deposit): Monthly instalments. Each month's deposit earns interest only from its deposit date — so the last instalment earns interest for just one month. RD earns slightly less interest than an equivalent FD for the same total amount.

When to choose RD: When you don't have a lumpsum available and want to build savings systematically from monthly income. When to choose FD: When you have a lumpsum to invest for a fixed period.
Yes. RD interest is fully taxable as "Income from Other Sources" at your income slab rate — same as FD. Banks deduct TDS at 10% when total interest (across FDs + RDs) exceeds ₹50,000 per year (₹1 lakh for senior citizens).

From April 2026, the new Form 121 replaces the earlier Form 15G (below 60) and Form 15H (senior citizens) under the Income-tax Act 2025. Submit it at the start of each financial year to avoid TDS if your income is below the taxable limit.
Yes, premature RD withdrawal is allowed at most banks — usually after a minimum of 3 months. A penalty of 0.5–1% is applied on the rate applicable for the tenure actually held (not the booked rate). This reduces your effective interest significantly.

Better option: Take a loan against your RD. Banks lend up to 80–90% of your RD balance at just 1–2% above your RD rate. Your RD continues earning full interest, and you only pay the small difference — far more cost-effective than breaking the RD. Post Office RD allows premature closure after 3 years with a 2% interest rate reduction.
Both involve monthly investing — but for very different goals:

RD wins for short-term goals (1–3 years): capital protection, guaranteed returns, DICGC insured, no market risk. Ideal for emergency fund, appliance purchase, vacation fund, or short savings goal.

SIP wins for long-term goals (5+ years): equity mutual funds have historically delivered 12–15% CAGR vs RD's 6–8%. ₹10,000/month SIP at 12% for 10 years = ₹23.2L vs RD at 7.5% for 10 years = ₹18.3L — ₹4.9L extra. Tax is also lower (LTCG 12.5% vs slab rate on RD).

Smart strategy: RD for goals within 3 years, SIP for everything beyond.
Post Office RD is a 5-year fixed tenure scheme at 6.70% p.a. with quarterly compounding, backed by the Government of India — the highest level of safety possible with no DICGC cap. Features: minimum ₹100/month, no maximum, loan available after 12 instalments, premature closure after 3 years (2% penalty).

When Post Office RD wins: When safety is the absolute priority and DICGC ₹5L cap is a concern (e.g., large deposits). When bank RD wins: When you want higher rates (up to 8.10%) within the DICGC-covered ₹5L limit, or need flexibility in tenure (6 months to 10 years) rather than the fixed 5-year Post Office RD.

🚀 Want Better Returns Than RD?

For goals beyond 3 years, debt mutual funds and SIPs deliver significantly better post-tax returns than RDs. Vikash Royal will match the right instrument to each of your financial goals. SEBI-Registered. ARN: ARN-356458

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