RD Calculator
Find the maturity value of a recurring deposit at bank or post office rates, and see how it compares with a SIP.
Reviewed by Ashutosh Joshi, PGDM (Finance) · Updated Oct 2026 · How we calculate
Key highlights
- The Post Office 5-year RD pays 6.7% for Oct–Dec 2026, compounded quarterly (Post Office rates). ₹5,000 a month matures at about ₹3,56,829.
- You deposit ₹3 lakh, so the interest is about ₹56,829 over five years, and it’s taxable at your slab rate.
- Bank RDs usually pay the same rate as the bank’s FD of that tenure. SBI was at 6.25–6.40% for 1–3 years on 20 Oct 2026.
- An RD suits goals one to three years away. For five years or more, an equity SIP has historically done much better, with more risk.
Maturity value
—
Compounded quarterly, the standard basis for Indian bank recurring deposits. The SIP comparison assumes a 12% annual return and is a projection, not a guarantee.
Your RD balance, year by year
Show year-wise table
What this RD calculator does
A recurring deposit is a fixed deposit you build one instalment at a time. You commit to a monthly amount for a fixed tenure, the bank or post office pays a fixed rate, and at the end you get a lump sum. Enter the monthly deposit, the rate and the tenure in months, and the calculator returns the maturity value and the interest earned.
How RD maturity is calculated
Indian banks and India Post compound RD interest quarterly, while you deposit monthly. Each instalment therefore earns interest for a different number of quarters. The standard formula is:
M = R × [(1 + i)n − 1] ÷ [1 − (1 + i)−1/3]R = monthly deposit · i = annual rate ÷ 4 · n = number of quarters
It looks odd because of the −1/3 power, but that term only converts quarterly compounding into a monthly deposit schedule. You don't need to remember it. The idea is that the first instalment earns interest for the full tenure and the last one for just a month.
Worked example: Post Office RD, ₹5,000 a month
Manoj, 41, runs a garment shop in Ludhiana and puts ₹5,000 every month into a Post Office RD for his son's college admission fees in five years.
- Rate: 6.7% a year for Oct–Dec 2026 (Ministry of Finance small savings rates)
- i = 0.067 ÷ 4 = 0.01675, n = 20 quarters
- M ≈ ₹3,56,829
He deposits ₹3,00,000, so interest is about ₹56,829. India Post's own published figure for a ₹100 RD at this rate, ₹7,136.58, matches the formula. One caution: the post office locks your rate on the day you open the account, so a later rate change doesn't affect an RD you've already opened.
| ₹5,000 a month | Deposited | Maturity value |
|---|---|---|
| 3 years, SBI at 6.40%* | ₹1,80,000 | about ₹1,99,000 |
| 5 years, Post Office at 6.70% | ₹3,00,000 | ₹3,56,829 |
| 5 years, SIP at an assumed 12% | ₹3,00,000 | about ₹4,12,000 (not guaranteed) |
*SBI's RD rate follows its FD card rate for the tenure. Checked 20 Oct 2026; confirm before you open.
What an RD is actually good for
I think of an RD as a commitment device more than an investment. It works well for a known expense one to three years out: a car down payment, school admission, a wedding in the family, the deposit on a rented flat. You know exactly what you'll get and when. Because the bank auto-debits it, you can't skip a month just because you feel like it, which is a real advantage.
Where it stops making sense is the long run. Look at the last row of the table. Over five years, the same ₹5,000 in an equity SIP could plausibly end ₹50,000+ ahead, though it might also be behind if the market falls in year five. Over 10 years the gap usually gets much wider. RD interest is also fully taxable at your slab rate, while equity gains get gentler LTCG treatment.
So when would I still pick an RD over a debt fund? Mostly when the person doesn't want any risk and the monthly budget is tight. In that situation the RD is the right option: the amount is fixed, the maturity is known, and there is nothing to track.
Practical points before you open one
- Missing an instalment costs money. Banks charge a small penalty per missed month. At the post office, four consecutive missed deposits discontinue the account, though it can be revived within two months.
- Premature closure usually means a lower rate. At the post office, closing after three years gets you the savings account rate.
- TDS applies like on FDs: 10% if total interest at a bank crosses ₹50,000 a year (₹1 lakh for seniors). Interest is taxable every year.
- The Post Office RD has one fixed tenure: five years. Banks offer anything from six months to 10 years.
Limits of this calculator
It assumes you never miss or prepay an instalment and that the rate stays fixed for the whole tenure, which is true for RDs. It doesn't deduct tax or show penalties, and it shows quarterly compounding only. A few small finance banks compound monthly, which adds a little.
If you already have the money as a lump sum, an FD earns more than an RD at the same rate, because all of it is invested from day one. If your horizon is five years or longer and you can live with ups and downs, compare with the SIP calculator.
RD in charts: Post Office RD at 6.7%
Post Office RD rate for Oct–Dec 2026 is 6.7%, compounded quarterly, for 60 months. These are the maturity values I computed with the quarterly-compounding method India Post uses; the official ready-reckoner may differ by a few rupees due to rounding.
| Year | Deposited so far | Interest so far | Balance (₹5,000/month) |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,210 | ₹62,210 |
| 2 | ₹1,20,000 | ₹8,694 | ₹1,28,694 |
| 3 | ₹1,80,000 | ₹19,746 | ₹1,99,746 |
| 4 | ₹2,40,000 | ₹35,679 | ₹2,75,679 |
| 5 | ₹3,00,000 | ₹56,829 | ₹3,56,829 |
RD vs a debt or equity SIP over 5 years
Same ₹5,000 a month for 5 years. The RD gives a fixed ₹3,56,829. The SIP numbers below are assumptions, not guarantees: a debt fund at 7% would grow to about ₹3,60,053, and an equity SIP at 12% to about ₹4,12,432, if those returns actually came through, which over just five years they may not.
My view: for a 3–5 year goal, both an RD and a debt fund SIP are fine. If you can take some risk and have a longer view, a debt fund SIP works, and if your budget allows, you can run an RD alongside it. If you don't want risk and the budget is tight, the RD is the right option.
What other RD calculators leave out
- Quarterly compounding shown year by year, not just at maturity.
- An honest side-by-side with SIPs, labelled as assumptions.
- TDS, stated plainly: since 1 April 2025 a bank or post office deducts TDS only when your total interest from it (RDs and FDs together) crosses ₹50,000 in a year, or ₹1 lakh for senior citizens. The rule moved from Section 194A to Section 393 of the new Income-tax Act, 2025 in April 2026, with the same limits. Below the limit there is no TDS, but the interest is still taxed at your slab.
- Premature closure: a Post Office RD can be closed after 3 years, but you get the Post Office savings rate (4%) instead of 6.7%.
If you can commit a lump sum instead, compare with the FD calculator. For long-term, tax-free saving, see the PPF calculator, and for growth goals the goal-based SIP calculator.
Guides worth reading next
Frequently asked questions
How is RD interest calculated?
Interest is compounded quarterly on monthly deposits: M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)], where i is the annual rate divided by 4 and n is the number of quarters.
What is the Post Office RD interest rate for October–December 2026?
6.7% a year, compounded quarterly, for the 5-year recurring deposit. The Ministry of Finance kept it unchanged for the quarter. The rate is locked for the life of the account when you open it.
How much will I get on a ₹5,000 monthly RD for 5 years?
At the Post Office rate of 6.7%, about ₹3,56,829 against ₹3,00,000 deposited, so roughly ₹56,829 in interest before tax.
Is RD interest taxable?
Yes, at your slab rate, every year. Banks and the post office deduct 10% TDS if interest exceeds ₹50,000 in a year (₹1 lakh for senior citizens).
RD or SIP: which is better?
An RD is better for goals one to three years away where certainty matters. An equity SIP has historically delivered more over five years or longer, but its returns are not guaranteed.
Can I withdraw an RD early?
Yes, usually with a lower interest rate or penalty. Post Office RDs can be closed prematurely after three years, at the savings account rate.
Results are estimates based on the inputs you enter and the formulas shown above. They are not guaranteed returns, an offer, or personal investment, tax or loan advice. Rates quoted were checked on 20 Oct 2026 and can change; confirm with the bank, fund house or India Post before you act. See our disclaimer and editorial policy.