Find the maturity value of a monthly recurring deposit.
Maturity amount
Total deposited
Interest earned
Deposits 96%
Interest 4%
A recurring deposit (RD) lets you save a fixed amount every month and earn a fixed interest rate, similar to a fixed deposit. It suits people who want guaranteed returns and the discipline of saving a set amount each month.
Example
₹5,000 a month for 12 months at 7% gives about ₹62,311 at maturity: ₹60,000 deposited plus about ₹2,311 interest.
The same ₹5,000 a month for 5 years gives about ₹3,59,664, of which roughly ₹59,664 is interest.
Interest is lower than on an FD of the same total amount because later instalments stay deposited for a shorter time.
Good to know
Missing an instalment usually attracts a small penalty, and several missed instalments can lead to the account being closed.
RD interest is taxable at your slab rate, and TDS rules are the same as for fixed deposits.
Post office RDs run for 5 years with the rate set by the government each quarter.
How this is calculated
Maturity = sum of R × (1 + r ÷ 4)^(months left ÷ 3) for every instalment
R is the monthly deposit and r the annual rate. The first instalment earns interest for the full tenure, the last for one month, with interest compounded every quarter — the method most Indian banks use.
Assumptions
Every instalment is paid on time; missed instalments attract penalties.
Interest is taxable at your slab rate; TDS may apply.
Rules and formula last verified: 12 October 2026
Frequently asked questions
Can I increase the monthly amount later?
No. In a standard RD the instalment is fixed when you open it. Open a second RD if you want to save more.
RD or SIP: which should I choose?
An RD gives a guaranteed return and protects your capital, which suits short-term goals. A mutual fund SIP can earn more over many years but its value goes up and down. See our SIP calculator.
Results are estimates for information only, based on the inputs and assumptions shown. They are not financial, tax or legal advice. Banks, fund houses and the tax department may calculate actual amounts differently.
