Free RD calculator online India 2026
🔍 Why We Built This Calculator Differently
While researching existing RD calculators on Google while building FiiPay’s tools section, we found nearly every result was the same: a three-field form (amount, rate, months) producing a single maturity number with no breakdown, no tax impact, and no way to compare your RD against the obvious alternative — an FD of the same total deployment. We also found that none of them showed what actually happens when you close an RD early or want to increase your monthly deposit as your salary grows. We built this calculator to fix all four gaps in one place.
Compare the same total money deployed as an RD (monthly instalments) vs a lumpsum FD. Shows why FD gives more — and why RD still wins for salaried investors.
RD (Monthly)
FD (Lumpsum)
Calculates actual amount received when closing an RD before maturity, after the bank’s penalty on applicable rate.
Model a recurring deposit where your monthly amount increases every year — aligning with salary growth.
What Is a Recurring Deposit and How Does Interest Work?
A Recurring Deposit (RD) is a savings scheme offered by banks and post offices in India where you deposit a fixed amount every month for a set tenure. At the end of the tenure, you receive the total of all deposits plus compounded interest. Unlike a Fixed Deposit — where you deploy one lumpsum — an RD is designed for salaried individuals who receive income monthly and want to save systematically.
Indian banks compound RD interest quarterly by default, not monthly. This means each deposit earns compound interest from the quarter it enters, not from the exact date. The calculation is more complex than a simple FD because each of your 24 (or 36, or 60) monthly instalments has a different remaining tenure — and therefore earns a different amount of compound interest. This is why a simple three-field form produces imprecise results, and why we built the loop-based calculator above.
RD vs FD: Which Gives More Return?
This is the most common question from RD investors — and the answer is always the same: FD gives more maturity value for the same total amount, when interest rates are identical. Use Mode 2 (RD vs FD) above to see this precisely for any amount.
The reason is mathematical. In an FD, your entire principal earns compound interest from Day 1. In an RD, your Month 1 deposit earns interest for the full 24 months, but your Month 24 deposit earns interest for only 1 month. The average earning period of an RD instalment is approximately half the total tenure — which is why RD interest is roughly half that of an equivalent FD.
But RD still wins for most salaried investors — because the alternative isn’t a lumpsum FD. The real alternative is a savings account earning 3–3.5%. Compared to that, an RD at 7% compounds your monthly savings meaningfully.
If you already have ₹1,20,000 sitting in a savings account: put it in an FD — it will grow more. If you receive ₹5,000 on your salary date that you want to save: put it in an RD — it forces the savings discipline and beats a savings account significantly. These are not competing products; they solve different cash-flow scenarios.
Best RD Interest Rates in India — June 2026
| Bank / Institution | 1 Year | 2 Years | 3 Years | 5 Years | Senior Citizen |
|---|---|---|---|---|---|
| SBI | 6.80% | 6.80% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 7.00% | 7.00% | 7.00% | 7.00% | +0.25% |
| ICICI Bank | 6.90% | 7.00% | 7.00% | 6.90% | +0.25% |
| Axis Bank | 7.00% | 7.10% | 7.10% | 7.00% | +0.25% |
| Kotak Mahindra | 7.10% | 7.25% | 7.15% | 6.20% | +0.50% |
| AU Small Finance Bank | 7.50% | 7.75% | 7.50% | 7.75% | +0.25% |
| Post Office RD | — | — | — | 6.70% | Same rate |
| * Rates indicative, June 2026. Post Office RD is 5-year only. Senior citizen rates are general public rate + the additional differential shown. Verify on official bank website before opening. Not investment advice. | |||||
Sources: Official websites of respective banks; India Post (indiapost.gov.in) for Post Office RD. June 2026.
The Post Office 5-year RD at 6.70% is sovereign-guaranteed (no DICGC limit applies), making it the safest RD option in India for large amounts. However, it cannot be closed before completing 3 years under any circumstance — not even medical emergencies. After 3 years, premature closure is allowed at a reduced rate. Factor this liquidity restriction into your decision before choosing PO RD over a bank RD.
Tax on RD Interest: The Annual Trap Most People Miss
RD interest is taxed as per your income slab — identical to FD interest. TDS is deducted at 10% when total interest income (RD + FD + savings account) from a single bank exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G (non-senior citizens with income below taxable threshold) or Form 15H (senior citizens) at the start of each financial year to avoid TDS deduction.
The common mistake: investors believe RD interest is only taxable when the RD matures. This is incorrect. Interest accrues every quarter and is taxable in that year’s ITR, regardless of when you receive it. A 3-year RD opened in April 2026 requires you to declare interest in ITR for FY 2026-27, FY 2027-28, and FY 2028-29. The tax slab selector in Mode 1 above shows your post-tax maturity accurately.
Compare RD Against Your Other Options
FD Calculator includes premature withdrawal penalty and post-tax analysis — use it to compare before committing
FD Calculator → SIP Calculator →Frequently Asked Questions
Conclusion
RD is not a glamorous instrument — it earns less than an FD for the same amount and far less than equity SIP over 10 years. But it excels at its actual job: converting regular monthly income into a disciplined, compounding savings habit for short to medium-term goals. If your salary arrives monthly and your goal is 1–5 years away, an RD at 7–7.75% beats a savings account by a meaningful margin with zero market risk.
Use the step-up mode to align your RD with salary growth, use the tax selector to see your real post-tax return, and use the RD vs FD mode if you’re ever sitting on a lumpsum wondering which to choose.
➡️ FD Calculator — Lumpsum with 4 modes including laddering
➡️ Best FD Rates June 2026 — Current bank-wise comparison
➡️ SIP Calculator — For goals beyond 7 years
➡️ FD vs Mutual Fund — When to use which instrument