Recurring Deposit (RD) Calculator – Small Savings, Big Returns
Do you find it hard to save a large amount all at once? The Recurring Deposit (RD) is the perfect solution. It allows you to invest a fixed, small amount every month, just like an EMI, but for your own future.
Our RD Calculator shows you the power of consistency. By calculating the maturity value of your monthly deposits, it helps you plan for short-term goals like a vacation, a wedding, or buying a gadget without the stress of a loan.
Why RD is the Best Habit Builder
RDs are designed to instill financial discipline. Once you start, the money is automatically deducted, ensuring you save before you spend.
Easy on the Pocket
Start with as little as ₹500/month. It's affordable for students, homemakers, and salaried professionals alike.
Fixed & Safe Returns
Unlike the stock market, RD returns are not volatile. You lock in an interest rate at the beginning, and that rate remains constant throughout the tenure.
Flexible Tenure
Choose a tenure that fits your goal, ranging from as short as 6 months to as long as 10 years.
Emergency Fund
RDs are highly liquid. In case of an emergency, you can close them prematurely or take a loan of up to 90% of the deposit value.
Frequently Asked Questions (FAQs)
How is RD different from FD?
In a Fixed Deposit (FD), you invest a lump sum amount once. In a Recurring Deposit (RD), you invest a fixed amount every month. FD is for those with a corpus; RD is for those looking to build a corpus.
What happens if I miss an RD installment?
If you miss a payment, the bank may charge a small penalty (usually around ₹1.50 per ₹100). If you miss multiple installments, the bank has the right to close your RD account prematurely.
Do senior citizens get extra benefits on RD?
Yes. Just like FDs, banks offer an additional interest rate of 0.50% to 0.75% to senior citizens on Recurring Deposits.
Is TDS applicable on RD interest?
Yes. If the interest earned on your RD exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank will deduct TDS at 10%. You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Can I change the installment amount or date?
No. Once an RD is opened, the installment amount and the deposit date are fixed for the entire tenure. Some banks offer "Flexi RDs" where you can deposit varying amounts, but standard RDs do not allow this.