What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a special term deposit offered by banks in India that allows people with regular incomes to deposit a fixed amount every month and earn interest at rates similar to regular Fixed Deposits.

How is RD compounding calculated in India?

RD compounding in India is calculated quarterly. Since deposits are made monthly, banks apply a specialized geometric progression formula representing monthly deposits compounding at quarterly intervals.

Can I withdraw my RD before maturity?

Yes, premature withdrawal of RD is allowed by most banks, but it usually attracts a penalty of 0.50% to 1.00% reduction in the applicable interest rate for the period the deposit remained with the bank.

Recurring Deposit (RD) Calculator Online - Estimate RD Returns

Recurring Deposit (RD) Calculator

Calculate your maturity value and interest earnings for monthly deposit installments.

Monthly Deposit (₹)

₹500₹5L₹10L

Rate of Interest (% p.a.)

1%8%15%

Tenure

6 Mon63 Mon120 Mon

Senior Citizen RatesApply additional interest premium (+0.50% p.a.)

Maturity Details

Maturity Amount₹3,59,481

Total Invested₹3,00,000

Est. Interest Earned₹59,481

16.5%Interest

Compare Top Indian Bank RD Rates (2026)

Select any rate preset below to instantly load it into the calculator.

SBISBI Bank

Regular6.80%

Senior7.30%

HDFCHDFC Bank

Regular7.15%

Senior7.65%

ICICIICICI Bank

Regular7.10%

Senior7.60%

AXISAxis Bank

Regular7.15%

Senior7.80%

PNBPNB Bank

Regular7.10%

Senior7.60%

Understanding Recurring Deposits (RDs) in India

A Recurring Deposit (RD) is a systematic saving tool that helps you build a financial cushion over time. Unlike Fixed Deposits, which require a large lump sum upfront, an RD lets you invest a small, fixed amount every month (e.g. ₹500, ₹2,000, or ₹10,000) for a predetermined tenure, earning interest on every installment.

How to Use the Arcdome RD Calculator

Monthly Deposit: Choose the monthly amount you want to save.
Interest Rate: Set the interest rate. You can easily click on SBI, HDFC, ICICI, Axis, or PNB bank cards below the calculator to instantly apply their current RD rate.
Tenure: Set the duration in months or years. Typical RD tenures range from 6 months to 10 years.
Senior Citizen Toggle: Toggle this to apply the senior citizen premium (+0.50%) offered by banks.

How RD Interest Compounding Works

In Indian banks, RD interest is compounded **quarterly**. Because deposits are made monthly, the interest is calculated using a sum of compound interest factors for each month. The formula used for calculating the maturity value of an RD is:

M = P × (1 + i)^1/3 × [ (1 + i)^N/3 - 1 ] / [ (1 + i)^1/3 - 1 ]

Where:

M: Maturity Value
P: Monthly Installment Amount
i: Quarterly Interest Rate (Annual Rate / 4)
N: Total tenure in months

FD vs. RD: Which One Should You Choose?

The choice between a Fixed Deposit and a Recurring Deposit depends entirely on your cash flow:

Choose Fixed Deposit (FD) if you have a lump sum amount (like a bonus, inheritance, or savings maturity) and want to lock it away to earn the highest interest immediately.
Choose Recurring Deposit (RD) if you want to save systematically from your monthly salary, building a disciplined saving habit without the pressure of an upfront lump-sum requirement.