RD calculator
Free, no sign-up · Facts checked 18 Oct 2026
What a monthly RD grows to, with tax, TDS, missed instalments and goals.
1₹5,000 a month · 6.7% · 5 yrs · from 22 Oct 2026
Maturity value₹3,56,829- You deposit
- ₹3,00,000
- Interest earned
- ₹56,829
Work it out
Maturity value
₹3,56,829
interest ₹56,829 · matures 22 Oct 2031
₹5,000 a month for 5 years at 6.7% grows to ₹3,56,829 on 22 Oct 2031: ₹3,00,000 deposited and ₹56,829 of interest.
- You deposit
- ₹3,00,000
- Interest earned
- ₹56,829
- Matures on
- 22 Oct 2031
- Effective yearly rate
- 6.87%
No TDS here: interest stays under ₹50,000 a year, unless your other deposits at the same bank push it over.
How the RD grows
Points at each 31 March and at maturity.
What it is made of
Point at a part to see it on its own.
From your numbers
Worked out from what you entered. Try one.
- Saving ₹1,000 more a month makes it ₹4,28,195.
- For someone 60+, most banks add 0.50%: about ₹4,740 more here.
Milestones
When the RD passes each mark.
- ₹1 lakh savedby Mar 29 · ₹1.63 lakh
- ₹10,000 interestby Mar 29 · ₹1.63 lakh
The same monthly amount elsewhere
Same deposit every month for the same time, before tax.
Post Office RD 6.7% (Oct–Dec 2026). Debt fund 7% and equity SIP 12% are long-term averages, not guaranteed; equity can fall in some years.
Each financial year
Always open. Point at a row to find it on the chart.
| Year | Deposits so far | Interest earned | TDS by the bank | Value at year end |
|---|---|---|---|---|
| FY 2026–27 | ₹30,000 | ₹474 | ₹0 | ₹30,474 |
| FY 2027–28 | ₹90,000 | ₹4,071 | ₹0 | ₹94,545 |
| FY 2028–29 | ₹1,50,000 | ₹8,473 | ₹0 | ₹1,63,017 |
| FY 2029–30 | ₹2,10,000 | ₹13,177 | ₹0 | ₹2,36,194 |
| FY 2030–31 | ₹2,70,000 | ₹18,204 | ₹0 | ₹3,14,399 |
| FY 2031–32 (to maturity) | ₹3,00,000 | ₹12,430 | ₹0 | ₹3,56,829 |
Full breakdown
- You deposit
- ₹3,00,000
- Interest earned
- ₹56,829
- Matures on
- 22 Oct 2031
- Effective yearly rate
- 6.87%
Guide
How an RD works
A recurring deposit (RD) is a fixed deposit you build month by month. You pay the same amount every month for a set time, the bank or post office adds interest, and at the end you get everything back in one sum. It suits people with a steady income who find it hard to save a lump sum.
Banks and the Post Office work out RD interest quarterly. Each monthly instalment earns interest only for the time it stays in, so the first instalment earns the most and the last one the least. The tool adds every instalment up this way, which matches the Post Office's own tables (₹100 a month for 5 years at 6.7% becomes about ₹7,137).
Selvi's little drops
Selvi runs a small tailoring shop in Kallakurichi. In October 2026 she opens a Post Office RD of ₹2,000 a month for 5 years at 6.7%. She deposits ₹1,20,000 in all, and on maturity she gets about ₹1,42,700: some ₹22,700 of interest, without ever having to set aside a big sum.
| Plan | Monthly | Time | Deposited | Maturity |
|---|---|---|---|---|
| Selvi, Post Office RD | ₹2,000 | 5 years | ₹1,20,000 | about ₹1,42,700 |
| The same at 6.4% (bank) | ₹2,000 | 5 years | ₹1,20,000 | about ₹1,41,600 |
How to use this tool
- Pick What I get, or Reach a goal to find the monthly deposit a target needs.
- Type the monthly deposit and the rate. The Post Office rate is one tap away.
- Set the years and months, and the date of your first deposit.
- Turn on Senior citizen, After tax, Inflation, Missed instalments or Close it early as needed.
The table splits the interest into financial years (April to March), the way TDS and income tax work.
Post Office RD rules
- Runs for 5 years; it can be extended for 5 more.
- Minimum ₹100 a month, in multiples of ₹10.
- A missed month costs ₹1 per ₹100 of the deposit for each month late. After more than 4 missed months the account is discontinued, but it can be revived within two months by paying what is due.
- It can be closed after 3 years, but then earns only the Post Office savings rate (4%).
- You can borrow up to 50% of the balance after one year.
- Unlike the 5-year Post Office Time Deposit, the RD does not give the old regime's ₹1.5 lakh tax deduction.
Tax and TDS
RD interest is added to your income and taxed at your slab every year. Banks deduct TDS at 10% once your interest with them passes ₹50,000 in a financial year (₹1 lakh for senior citizens), counting all your deposits there together. If your total income is below the taxable limit, give the bank Form 121, which replaced Forms 15G and 15H from the 2026-27 tax year.
RD, FD or SIP?
An RD gives a fixed, guaranteed return, like an FD, but lets you save a little each month. An FD earns more on the same total, because all the money is in from day one. A mutual fund SIP has averaged more over long periods but goes up and down. Many people use an RD for goals one to three years away and a SIP for goals further out.
Common mistakes
- Comparing an RD with an FD of the same total. The FD earns more because all the money starts on day one; that is not a fair test.
- Choosing too long a tenure. If you may need the money early, a shorter RD avoids the closing penalty.
- Forgetting the date. Pay on the same date every month; late months cost a fee and a little interest.
- Ignoring tax. At the 30% slab plus cess, a 6.7% RD earns under 4.7% after tax.
Rates and rules here were checked in October 2026. This tool is a guide, not financial advice.
Sources
Facts checked 18 Oct 2026POSTPost Office Saving Schemes: National Savings Recurring Deposit Account (RD) · India Post, Department of Posts2026
The Post Office RD rate of 6.7% compounded quarterly, ₹100 minimum, ₹1 per ₹100 default fee, more than 4 defaults discontinue it, closure after 3 years at the 4% savings rate, and loans up to 50%. checked 18 Oct 2026
ITDIncome-tax Act, 2025, section 393: Tax to be deducted at source · Income Tax Department2026
Banks and post offices deduct TDS on deposit interest above ₹50,000 a year, or ₹1 lakh for senior citizens. checked 18 Oct 2026
ITDForm No. 121: Declaration under section 393(6) for receipt of certain incomes without deduction of tax · Income Tax Department2026
The form that replaced Forms 15G and 15H, given to the bank when your income is below the taxable limit. 24 Mar 2026
MOSPIPress release: Consumer Price Index for September 2026 · Ministry of Statistics and Programme Implementation (NSO)2026
Retail inflation of 5.54% in September 2026 (provisional), behind the inflation setting. 12 Oct 2026
Questions
How is RD interest worked out?
Each monthly instalment earns interest compounded every quarter for the months it stays in. The tool adds them all up: maturity = sum of deposit × (1 + rate ÷ 4) ^ (months left ÷ 3).
What is the Post Office RD interest rate?
6.7% a year for the 5-year RD, compounded quarterly, for October to December 2026. The government reviews it every quarter.
What happens if I miss an RD instalment?
At the Post Office you pay ₹1 per ₹100 for each month late; after more than 4 missed months the account is discontinued but can be revived within two months. Banks charge a similar fee, often ₹1.50–2 per ₹100.
Is TDS deducted on RD interest?
Banks deduct TDS at 10% when your total interest with them passes ₹50,000 in a financial year (₹1 lakh for seniors). Form 121 avoids it if your income is below the taxable limit.
Can I close an RD early?
Yes, usually with a lower rate. Banks cut 0.5–1%; the Post Office allows closure after 3 years at its savings rate.
Is an RD better than a SIP?
An RD is fixed and safe; a SIP can earn more over long periods but goes up and down. Choose by how soon you need the money.