A recurring deposit lets you save a fixed amount every month at a guaranteed rate. It's a disciplined way to build a fund for a goal a few years away. This calculator shows the maturity amount.
How RD maturity is calculated
Banks and the post office compound RD interest quarterly. Each monthly instalment earns interest from the month it's paid until maturity, so the first instalment earns the most and the last the least.
Maturity = sum over every instalment of R × (1 + r ÷ 4)^(4 × months remaining ÷ 12)R = monthly deposit, r = yearly rate ÷ 100Worked example
Example: ₹5,000 a month for 5 years at 6.7% (post office RD rate)
Total deposited: ₹3,00,000.
Maturity value: about ₹3,56,829, interest ₹56,829.
RD vs SIP
An RD gives a guaranteed result and suits goals 1–5 years away, such as a down payment or a wedding. Over longer periods, a SIP in a mutual fund has historically grown much more, with ups and downs along the way; compare with the SIP calculator. RD interest is taxed at your slab rate, like FD interest, and missed instalments can attract a small penalty.
How to use this calculator
- Enter your monthly deposit.
- Enter the rate and term in months.
FAQs
What is the post office RD rate?
6.7% for the 5-year RD in October–December 2026.
Sources
- Angel One: small savings rates for October–December 2026
- Indian Bank: Government memorandum on small savings rates, Q3 FY 2026-27
Results are estimates for resident individuals under 60 and aren't tax, legal or financial advice. For your own return, check with a chartered accountant. Spotted a mistake? Tell us.