RD - Recurring Deposits Interest Calculator

Bank Tenure of Deposit RD Interest Rates
State Bank of India 1 Year - 10 Years 5.50% - 5.70%
Ujjivan Small Finance Bank 6 Months - 120 Months 6.25% - 7.50%
Equitas Small Finance Bank 12 Months - 120 Months 7.00% - 8.00%
Syndicate Bank 13 Months - 10 Years 6.25% - 6.30%
Yes Bank 6 Months - 10 Years 7.00% - 7.25%
HDFC Bank 6 Months - 120 Months 4.50% - 5.75%
Kotak Bank 12 Months - 10 Years 5.00% - 5.50%
IDFC First Bank 6 Months - 27 Months 6.75% - 7.25%
ICICI Bank 6 Months - 10 Years 4.75% - 6.00%
Jana Small Finance Bank 6 Months - 120 Months 6.75% - 8.50%
ESAF Small Finance Bank 181 Days - 365 Days 6.00% - 8.00%

Recurring Deposit or RD is a financial tool for investment. Here, you can invest an amount regularly every month, and build a fund for a long-term use. An interest rate will apply on the deposit. The interest amount will be added to the amount deposited to form the final maturity amount. The Recurring Deposit interest calculator helps you to calculate the maturity value. It involves a simple formula to calculate the interest. The interest is compounded on a recurring deposit only after adding the amount in the first quarter.

  • You can choose the minimum amount you wish to put in RD, as well the tenure of the deposit.
  • Compared to Fixed Deposit and savings account schemes, RDs are more flexible and earn a higher interest.
  • FD is usually chosen to save a lump-sum amount for a fixed tenure on a fixed rate.
  • A recurring deposit account on the other hand helps you to invest money in instalments without having to deposit a lump sum amount.

In this post we will discuss about latest RD interest rates, things to keep in mind when calculating RD maturity value, financial quarters in a year, factors impacting the rates, simple interest and compound interest calculation on the deposit, simple interest formula, RD interest calculation formula, illustration, RD maturity value calculator online, and frequently asked questions.

Recurring Deposit Interest Rates

Here is a list of RD rates by banks and financial institutions:

Banks/Financial Institutions Tenure RD Rate of Interest
Indian Bank 180 Days - 10 Years 3.95% to 5.25%
Indian Overseas Bank 180 Days - 10 Years 5.75% to 6.80%
Axis Bank 9 Months - 10 Years 6.05% to 6.50%
Andhra Bank 6 Months - 10 Years 5.50% to 5.80%
Bank of India 180 Days - 10 Years 6.25% to 6.70%
Bank of Baroda 180 Days - 10 Years 4.50% to 5.70%
Citibank 365 Days - 731 Days 3.00% to 3.25%
IDBI Bank 1 Year - 10 Years 5.75% to 5.90%
Bank of Maharashtra 6 Months - 10 Years 6.00% to 6.60%
Canara Bank 180 Days - 10 Years 6.20% to 7.00%
PNB 180 Days - 10 Years 5.50% to 5.80%
Allahabad Bank 180 Days - 10 Years 3.95% to 5.25%
UCO Bank 1 Year - 10 Years 4.95% to 5.00%
Union Bank of India 180 Days - 10 Years 5.50% to 5.90%
Central Bank of India 180 Days - 10 Years 6.20% to 7.00%
Punjab and Sind Bank 180 Days - 10 Years 6.25% to 7.00%
IndusInd Bank 12 Months - 10 Years 7.25% to 8.00%
Bandhan Bank 6 Months - 10 Years 5.40% to 6.75%
DBS Bank 180 Days - 10 Years 5.75% to 7.50%
Fincare Small Finance Bank 181 Days - 7 Years 6.50% to 9.00%
AU Small Finance Bank 3 Months - 120 Months 5.75% to 7.53%
India Post Office 5 Years - 5 Years 5.80% to 5.80%
Corporation Bank 1 Year - 10 Years 6.50% to 6.80%
Karur Vysya Bank 180 Days - 10 Years 6.75% to 7.00%
South Indian Bank 1 Year - 10 Years 6.50% to 7.60%
RBL Bank 180 Days - 20 Years 7.15% to 8.05%
Lakshmi Vilas Bank 180 Days - 10 Years 6.50% to 8.00%

Things to Consider When Calculating Recurring Deposit Interest

Before calculating the RD interest, keep the following aspects in mind:

1) As the interest is counted quarterly, it is important to know the financial quarters in a year:

Quarter 1: April to June

Quarter 2: July to September

Quarter 3: October to December

Quarter 4: January to March

2) Factors Affecting RD Interest Rates

Here are the things to consider to decide the recurring deposit interest rates:

  • Tenure
    The duration or term of the deposit affects the interest earned, as well as the rate of interest. Depending on the time period wherein you invest money, the rate will differ. Usually the tenure for an RD is between 6 months and 10 years.

  • Your Age
    Senior citizens earn a higher rate of interest on recurring deposit schemes. The rates are higher by 0.50% to 0.75% compared to the regular rates on deposits. The age criteria for senior citizens may also differ as per the bank/financial institution.

  • Deposit Amount
    The minimum amount for RD differs from an institution to another. It can be as less as Rs. 10. The deposit amount too affects the recurring deposit rate and maturity amount.

  • Current Economic Environment
    Depending on the economic condition of the country and the institution itself, the interest rate will differ. The inflation rate, repo rate set by RBI, and other conditions may play a role in determining the final RD rate of interest.

3) Recurring Deposit: Simple Interest and Compound Interest Calculation

As the compounding is done only after completion of the first quarter, the interest calculation until then will be based on simple interest method. In case a person plans to avail the RD scheme from the month of February, then the simple interest will be applicable from the same day until March followed by compound interest thereafter.

The simple interest formula:

I = P X R X T

I = Interest

P = Principal

R = Annual interest

T = tenure or the time period of scheme

As per the Indian Bank Association, the recurring deposit interest formula is as follows:

M = R[(1+i) ^n-1]/(1-(1+i) ^ (-1/3))

Here is a breakdown:

M = Maturity Value

R = Monthly instalment

I = rate of interest/400

N = number of quarters

4) Illustration

If a person is investing Rs. 1000 from January, then using the simple interest and compound interest formulas, he will benefit with Rs. 12,801.9 at the end of the year on an interest of 12%.

  • Let us take another instance to understand the same. A girl makes a recurring deposit under a scheme for 30 months where she places Rs. 10,000 each month.
  • The rate of interest earned is 5%. Now the amount she will benefit with on maturity will be Rs. 3, 20,095.
  • The interest amount included in the maturity value will be Rs. 20,095.

5) How to use the RD interest calculator online?

It is simple and straightforward to determine the interest applicable under Recurring deposit scheme from the same formulae as mentioned above. Follow the Recurring Deposit interest calculator below and provide the necessary details to know the actual maturity amount.

RD calculator

6) How to calculate compound interest on the recurring deposits?

It is easy to calculate the compound interest. The interest is applied every quarter. Interest earned from each quarter is added to get the final amount on maturity. The formulae used to find compound interest is:

A = P (1 + r/n) ^ nt

A = final amount received

P = principal or the sum invested initially

r = annual interest rate (calculated in decimals)

n = number of times interest compounded each year

t = scheme tenure

Frequently Asked Questions about RD Interest Calculator

Here are Recurring Deposit Interest Calculator FAQs:

Just like fixed deposit schemes have tax applicable, the RD schemes also follow the same phenomenon. Tax is deducted at source (TDS) on the amount deposited in RD (with effect from June 1, 2015). The TDS is 10% per annum if the interest earned is more than Rs. 10,000 in a single financial year. Taxation is based on accrual basis and not on receipt basis. If you deposit for 5 years in a bank, the interest received is only at the end of 5 years. The tax is then applied on this accrued interest for every year in the maturity year itself.

NOTE: Remember that it is only the interest amount that is taxable and not the amount originally invested in the deposit. If you have no taxable income, then submit Form 15G to avoid the TDS on the deposit.

Here are the benefits of calculating interest on an RD calculator online:

  • The calculator helps you to save time for calculation. It takes just a few seconds to calculate the maturity value.
  • You do not have to manually calculate the Recurring Deposit returns. Thus, there is no scope of making any errors in calculations. The results are thus accurate without ambiguity if you enter all the variables correctly in the calculator.
  • The RD maturity calculator is free-of-cost. You can use it as many times as you wish. You can try out different combinations on the tool and derive at accurate results.

The starting tenure of an RD is 6 months, which can go up to 10 years. You can opt for a tenure in multiples of 3 months after the initial 6 months. So, the tenure can be 9 months, 12 months, 15 months, 18 months, and there on.

There are two types of RDs. In a regular recurring deposit scheme, you choose a tenure for investment and the deposit amount at the time of opening the account. You cannot change the amount of deposit after account opening. If you miss making a deposit, then you have to pay a penalty. Also, on withdrawing money in between from the account, you have to pay a penalty.

A flexible recurring deposit on the other hand, allows you to change the deposit amount every month. The tenure is however fixed. The instalment amount is changeable over and above the base amount. But you may have to settle for a lower rate of interest in this scheme than that applicable on a regular RD.

You can close the RD account before completion of its tenure. You will receive the interest earned till the date of closure. There could be a penal fee charged for withdrawing before the end of tenure.