RD Calculator

The calculator treats each instalment as paid at the start of the month and compounds interest monthly at the annual rate divided by 12. With the default inputs (₹5,000 a month at 6.5% for 5 years) you deposit ₹3,00,000 and the maturity value comes to about ₹3,55,284, so interest is about ₹55,284.

Many banks and the post office compound RD interest quarterly instead. Using the quarterly method on the same inputs gives about ₹3,54,954, roughly ₹330 less. So if your bank's quote is slightly lower than the figure here, the compounding method is the likely reason. Use this calculator to plan and compare; use the bank's own maturity figure as the final number.

• The result is before tax.
• It assumes every instalment is paid on time.
• It assumes the rate stays the same for the whole tenure.

The Post Office Recurring Deposit runs for 5 years and pays 6.7% for the October–December 2026 quarter, the same as the previous quarter. The government reviews small savings rates every quarter, so check the rate that applies when you open the account.

To compare with a bank RD, run both through the calculator with the same monthly amount and tenure and only the rate changed. At ₹5,000 a month for 5 years, the gap between 6.5% and 6.7% is about ₹1,900 in favour of the higher rate. Small rate differences matter less than turning up with every instalment.

RDs suit goals with a fixed date and amount: school fees, a deposit for a bike, a wedding expense next year. Start from the target, then adjust the monthly amount until the maturity value covers it. At 6.5%:

Round up, not down. ₹5,000 a month for 3 years gives about ₹1,99,232, just short of ₹2,00,000. Also leave room for tax: RD interest is added to your income every year, so if the goal amount is fixed, add a small buffer or pick a slightly higher deposit.

The calculator cannot model a missed month. In practice, banks and the post office may charge a penalty on a late instalment, and several missed instalments can lead to the account being discontinued or closed. Closing an RD before maturity usually means a lower rate on the money already deposited. The exact rules differ between banks, so read them before you open the account.

Two habits avoid most problems: set the instalment date a few days after your salary arrives, and use auto-debit from your savings account. If money is tight, a smaller RD you can always pay beats a larger one you miss.