Recurring Deposit (RD) Calculator India - Post Office and Banks

RD Calculator India - Post Office & Bank Returns

Calculate Recurring Deposit maturity with quarterly compounding. Compare Post Office vs banks. Senior premium for banks only.

100% private - everything runs in your browser, no data is sent anywhere

Source: DEA Q1 FY 2026-27 small savings memo. Rates change without prior notice; verify on value date with your institution.

₹
₹100₹1,00,000
Annual Rate (override)6.70%
3%9%
Tenure60 mo (5.0 yr)
6 mo10 yr

3-month increments (RD quarter alignment)

Total Invested
₹3,00,000
Maturity Amount
₹3,56,829
Interest Earned
₹56,829
ⓘ
Peak annual interest (year-5 of this RD, the highest accrual due to back-loaded compounding): ₹21,150. Average across tenure: ₹11,366. Peak year is below the Section 194A TDS threshold of ₹50,000 for general depositors; no TDS expected at this institution alone. Section 194A, Income-tax Act, 1961, as amended by the Finance Act 2025 (Section 58), effective 1 April 2025. Calculator does NOT compute your final tax - per-FY interest depends on aggregate across all institutions and your slab rate.
84% / 16%invested / interest
Invested (84%)
Interest (16%)
ℹ️
Disclaimer: Mutual fund investments are subject to market risks.
Was this tool helpful?Report an issue

Related Tools

FD Calculator India - Compound Interest + TDS

Calculate Fixed Deposit maturity with quarterly compounding. Cumulative vs non-cumulative modes. Senior premium, TDS thresholds, bank presets.

finance

PPF Calculator

Calculate PPF maturity amount with year-by-year breakdown. Current rate 7.1%. Tax-free EEE status.

finance

SSY Calculator

Calculate Sukanya Samriddhi Yojana maturity at 8.2% (FY 2026-27). Year-by-year breakdown, 80C tax benefits.

finance

TL;DR

Calculate Recurring Deposit maturity with quarterly compounding using the Indian Banks' Association formula. Compare Post Office RD (6.70%) vs SBI / HDFC / ICICI / Axis bank RDs (6.45-6.80%) with effective dates per preset. Senior premium of +0.50% applies to bank RDs only - Post Office schemes have a uniform rate for all citizens. TDS info per Section 194A as amended by Finance Act 2025 (Rs 50K general / Rs 1L senior threshold). Bank rates change without prior notice; verify on the value date.

Quick Facts

CompoundingQuarterly (every 3 months) - standard across SBI / HDFC / ICICI / Axis / Post Office
Math conventionIBA closed-form: M = P x [(1+i)^N - 1] / [1 - (1+i)^(-1/3)] where i = quarterly rate, N = quarters
Post Office RD rate6.70% (DEA Q1 FY 2026-27, unchanged from Q4 FY 2025-26; next review 30 Jun 2026)
Bank RD rates (May 2026)SBI 6.80%, HDFC 6.50%, ICICI 6.50%, Axis 6.45% (5-year). Bank rates change without prior notice.
Senior citizen premium+0.50% on bank RDs (typical). NOT applicable to Post Office RD - rate is uniform per India Post rules.
Tenure (Post Office)5 years standard; can be extended in 5-year blocks. Premature closure permitted after 3 years.
Tenure (Banks)Typically 6 months to 10 years in 3-month increments
TDS threshold (Section 194A)Rs 50,000 general / Rs 1,00,000 senior - per Finance Act 2025 amendment effective 1 April 2025. Rate 10% with PAN, 20% without.
Where computation happens100% in your browser; no upload, no signup, no PII collected
Companion toolUse FD Calculator for lump-sum deposits with cumulative or non-cumulative interest

What is a Recurring Deposit (RD)?

A Recurring Deposit is a savings instrument where you deposit a fixed amount every month for a fixed tenure (typically 6 months to 10 years), earning compound interest at a pre-agreed rate. Unlike a Fixed Deposit which takes a single lump sum, an RD lets you build a corpus through regular monthly contributions - useful for salaried savers who want disciplined accumulation without the volatility of mutual fund SIPs.

Two main flavours in India: Post Office RD (sovereign-backed, 5-year tenure, rates set quarterly by the Department of Economic Affairs) and Bank RDs (rates set by each bank, more flexible tenure, with a +0.50% senior citizen premium typically). Post Office RD does not offer a senior premium - the rate is uniform across all citizens.

How to Calculate RD Maturity

The Indian Banks' Association formula for RD maturity assumes monthly deposits with quarterly compounding. Each monthly deposit accrues at a fractional-quarter compound rate within a quarter and at the full quarterly rate thereafter. The closed form:

M = P x [(1 + i)^N - 1] / [1 - (1 + i)^(-1/3)]
  • P = monthly installment (Rs)
  • i = quarterly interest rate = annual rate / 400 (e.g. 6.70% / 400 = 0.01675)
  • N = number of quarters = months / 3
  • M = maturity amount

How to Calculate RD Interest in Post Office

Post Office RD currently pays 6.70% per annum (Q1 FY 2026-27, unchanged from Q4 FY 2025-26 per the DEA Finance Ministry memo dated 30 March 2026; next review 30 June 2026). The standard tenure is 5 years (60 months / 20 quarters), extendable in 5-year blocks.

Worked example for Rs 5,000/month at 6.70% over 5 years (verified via the calculator above):

  • Total invested over 60 months: Rs 3,00,000
  • Maturity amount: Rs 3,56,829
  • Interest earned: Rs 56,829 (~19% wealth gain in 5 years)
  • Peak final-year interest: ~Rs 21,150 (tenure average ~Rs 11,366) - well below the Section 194A TDS threshold (Rs 50,000 general / Rs 1,00,000 senior), so no TDS is expected at this scale.

Comparison: Post Office RD vs Bank RD (May 2026)

Same Rs 5,000/month for 5 years across institutions. Numbers below are computed via the calculator using rates effective on the dates shown.

InstitutionRateAs ofMaturityInterest
Post Office (5-yr)6.70%30 Mar 2026Rs 3,56,829Rs 56,829
SBI6.80%15 Dec 2025Rs 3,57,771Rs 57,771
HDFC Bank6.50%6 Mar 2026Rs 3,54,954Rs 54,954
HDFC Bank (senior)7.00%6 Mar 2026Rs 3,59,664Rs 59,664
Axis Bank6.45%7 Apr 2026Rs 3,54,487Rs 54,487

SBI currently leads on bare rate, but bank rates change without prior notice and senior citizens at HDFC / ICICI / Axis end up ahead of Post Office once the +0.50% senior premium is applied. Post Office is the choice when sovereign backing matters more than 0.10-0.30% of yield. Verify the rate on your value date before opening any RD.

Tax on RD Interest (TDS + slab)

RD interest is fully taxable in India - it does NOT enjoy the EEE status of PPF / SSY. The interest you earn is added to your total income each financial year and taxed at your slab rate. Two layers:

  • TDS at source (Section 194A): the bank or post office deducts 10% TDS if your annual interest from that institution exceeds Rs 50,000 (general) or Rs 1,00,000 (senior citizens 60+). These thresholds were raised by the Finance Act 2025, effective 1 April 2025 (previously Rs 40,000 / Rs 50,000). TDS is 20% if PAN is not furnished. Submit Form 15G (general) or 15H (senior) at the start of the FY if your total income is below taxable limit to avoid TDS deduction.
  • Slab-rate tax at filing: regardless of TDS, your full RD interest is reported under "Income from Other Sources" and taxed at your slab. TDS already deducted is credited against your final liability when you file your ITR.

This calculator does NOT compute your final tax. The TDS callout above the donut shows whether the per-FY interest from this single deposit is likely to trigger TDS at source. Aggregate interest across all your RDs / FDs at the same institution; if combined per-FY interest stays below Rs 50K (or Rs 1L for senior), no TDS is expected.

Premature Withdrawal & Loan Against RD

Post Office RD: premature closure permitted after 3 years; if closed early, the savings-account interest rate (currently 4%) applies. Banks: premature closure typically attracts a penalty of 0.50-1.00% lower than the contracted rate; rules vary by bank, so verify before opening. Loan against RD: most institutions offer up to 50-90% of the deposit balance after 12 regular installments at a small spread over the RD rate. None of this is computed here - the calculator assumes the deposit runs to full maturity.

Sources & References

Last reviewed in May 2026. Post Office rate verified against DEA Q1 FY 2026-27 memo. Bank rates verified against each bank's interest-rate page on the dates shown in the comparison table. Bank rates change without prior notice; ascertain the rate on your value date with the institution before depositing. Re-verify Post Office rate after each DEA quarterly review (next: 30 Jun 2026).

Looking for a lump-sum deposit instead of monthly installments? Use the FD Calculator for cumulative or non-cumulative Fixed Deposits. For tax-free long-term savings, see PPF Calculator (15-year, EEE status). For a girl-child specific scheme, see SSY Calculator. For market-linked monthly investing, compare with SIP Calculator.

Frequently Asked Questions

What is a recurring deposit (RD) and how does it work?+
A Recurring Deposit (RD) is a savings instrument where you deposit a fixed amount every month for a fixed tenure (typically 6 months to 10 years), earning compound interest. Unlike Fixed Deposits which take a single lump sum, RDs let you build a corpus through regular monthly contributions. Two main flavours: Post Office RD (sovereign-backed, 5-year tenure, rates set quarterly by the Department of Economic Affairs) and Bank RDs (rates set by each bank, more flexible tenure, +0.50% senior premium typical). Post Office RD does NOT offer a senior citizen premium.
How to calculate RD interest in post office?+
Post Office RD currently pays 6.70% per annum (Q1 FY 2026-27, unchanged from Q4 FY 2025-26 per DEA memo dated 30 March 2026; next review 30 June 2026). The standard tenure is 5 years (60 months / 20 quarters). Use the IBA closed-form: M = P x [(1+i)^N - 1] / [1 - (1+i)^(-1/3)] where P is monthly installment, i = 6.70/400 = 0.01675 quarterly, N = 20 quarters. For Rs 5,000/month: total invested Rs 3,00,000, maturity Rs 3,56,829, interest Rs 56,829. The calculator above computes this exactly using the IBA formula.
How to calculate RD maturity?+
Use the Indian Banks' Association (IBA) formula: M = P x [(1+i)^N - 1] / [1 - (1+i)^(-1/3)] where P is your monthly installment, i is the quarterly interest rate (annual rate / 400), and N is the number of quarters (months / 3). The formula assumes monthly deposits with quarterly compounding and accounts for fractional-quarter accrual within each quarter. For most Indian banks and the Post Office, this is the standard convention. The calculator above implements this exactly and is unit-tested against a hand-built 3-month case.
What is the current Post Office RD interest rate (May 2026)?+
6.70% per annum, unchanged for Q1 FY 2026-27 (April-June 2026). The Department of Economic Affairs reviews small savings rates quarterly; the next review is on 30 June 2026 for Q2 FY 2026-27. Rates have stayed at 6.70% since Q4 FY 2025-26 despite RBI repo rate cuts. Source: Finance Ministry announcement dated 30 March 2026.
What are the current SBI / HDFC / ICICI / Axis RD rates?+
As of May 2026: SBI 6.80% (revised 15 Dec 2025), HDFC 6.50% (revised 6 Mar 2026), ICICI 6.50% (revised 8 Apr 2026), Axis 6.45% (revised 7 Apr 2026). Senior citizens get +0.50% at most banks. These rates are 5-year tenure rates and CAN change without prior notice. The dropdown in the calculator shows the effective date per bank; verify the current rate on your value date with the institution before opening an RD.
How is RD interest taxed in India?+
RD interest is fully taxable - it does NOT have the EEE status of PPF or SSY. Two layers: (1) TDS at source under Section 194A: the bank or post office deducts 10% TDS if your annual interest from that institution exceeds Rs 50,000 (general) or Rs 1,00,000 (senior citizens), as amended by Finance Act 2025 effective 1 April 2025. TDS is 20% if PAN is not provided. Submit Form 15G or 15H if your total income is below taxable limit. (2) Slab-rate tax at filing: regardless of TDS, your full RD interest is reported under Income from Other Sources and taxed at your slab rate; TDS already deducted is credited against your final liability.
What is the difference between RD and FD?+
RD takes monthly installments over the tenure (e.g. Rs 5,000/month for 5 years = Rs 3 lakh deposited gradually). FD takes a single lump sum upfront (e.g. Rs 3 lakh deposited on day 1 for 5 years). RD is useful for disciplined monthly accumulation from salary; FD is useful when you have a lump sum already (bonus, inheritance, sale proceeds). FD typically gives slightly higher final corpus on the same total amount because the full principal earns interest from day 1, while RD's later installments only earn interest for the remaining months. Both use compound interest with quarterly compounding standard.
Can I close an RD early?+
Yes, with conditions. Post Office RD: premature closure permitted only after 3 years; if closed early, the savings-account interest rate (currently 4%) applies, not the RD rate. Banks: most allow premature closure anytime with a penalty of 0.50-1.00% lower than the contracted rate. Loan against RD: most institutions offer up to 50-90% of the deposit balance after 12 regular installments at a small spread over the RD rate - usually cheaper than breaking the deposit. The calculator above assumes the deposit runs to full maturity.