🔄Investments

RD Calculator

Recurring deposit maturity — quarterly compounding, TDS included

₹10,000
7%

Bank announces; check current RD rates

24 mo (2.0 yr)

Depositor Type

Income Tax Slab

Effective Rate7.00%
Maturity Value₹2.60 L
Interest Earned₹19,692
Tax on Interest₹5,908
Post-Tax Maturity₹2.54 L

RD Growth — 24 Months at 7%

TDS & Tax Breakdown

Total deposited

₹2.40 L

Maturity value (pre-tax)

₹2.60 L

Interest earned

₹19,692

TDS deducted (10%)

TDS threshold: ₹40,000/yr

Nil (below threshold)

Tax at 30% slab (total)

₹5,908

Post-tax maturity value

₹2.54 L

Effective post-tax yield (p.a.)

2.87%

RD Rules & Tips

→ RD uses quarterly compounding. Interest is compounded every 3 months, not monthly — slightly lower than EMI calculation.

→ TDS @ 10% deducted if total bank interest > ₹40,000/yr (₹50,000 for seniors). Submit Form 15G/15H if income below taxable limit.

→ Missing an instalment attracts penalty (0.5–1.5% of missed amount per month). Some banks allow grace period.

→ Premature closure: 1–2% penalty on applicable rate. Avoid premature closure — use overdraft against RD instead.

Compare bank RD rates — some offer 7.5%+.

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FAQ

RD Calculator — FAQ

Common questions about this calculator

RD uses quarterly compounding. Each monthly instalment earns interest from its deposit date to maturity, compounded quarterly.

Calculations are approximate and for educational purposes only. Excludes surcharge for income above ₹50L. Consult a Chartered Accountant for personalised tax advice.