RD Calculator and Formula – Details About Recurring Deposit (RD)

Recurring Deposit in short RD, is a particular kind of deposit offered through banks. It allows people to deposit any fixed amount and get interest every month. The interest rate of RD is based on the applicable rate to the fixed deposits. Check RD Calculator Formula and How to Calculate it below.

Things To Know About Recurring Deposit:

  • The deposit matures on a specific date in the future. The minimum and maximum period Recurring Deposit is 6 months and 10 years, respectively.
  • You can fund your RD by Standard Instructions. It is the instructions by the customer to the bank to withdraw money from your current or savings account and deposit it into your Recurring Deposit account.
  • If any of the installments delayed, the interest rate will be reduced. Which means the difference in interest will be deducted from the maturity value.
  • A Recurring Deposit account holder can avail of a loan against the collateral of the RD up to 80-90 percent of the deposit value.
  • TDS or Tax Deducted at Source is applied on RD. 10 percent TDS would be deducted by the bank. One whose income is not taxable can avoid TDS by submitting the form 15G.
  • Every Indian resident individual is eligible to invest in a Recurring Deposit. Even banks also provide the opportunity for minors to open RD. The possibility can really benefit minors if they can continue their savings habits in the future.


What Is RD Calculator?

RD Calculator is a way to figure out your maturity value in minutes.


P(n)+I = P*n [1 + {(n+1)r} ÷ { 12*2*100}]

Here P= Principal amount, n= time, I= Interest, r= Rate of interest per annum.

How to Calculate Maturity value RD through an RD Calculator?

Step 1: Enter the monthly installment amount in the first field

Step 2: Fill the rate of interest

Step 3: Provide the deposit tenure

Ste 4: Check the maturity amount in the corresponding area

You must be wondering where you can find the RD calculator. Well, you can find it on every bank’s website. The different bank has designed its RD calculator differently. By using the calculator, you will have the perfect idea of each bank’s RD maturity value.

Read More – Fixed Deposit Calculator | FD Interest Rates Calculator and Maturity

Factors That Affect Interest Rates:

You must consider a few factors while depositing the interest amount.

  • Tenure: RD interest varies across all the tenure options. Tenure is basically the period when the money is deposited in a Recurring Deposit.
  • Age If The Applicant: Banks provide a higher interest rate to the senior citizen RD depositors. So get a higher interest rate on RD, you have to fulfill the minimum age criteria of a senior citizen.
  • Current Economic Environment: The economic environment influences RD interest rates. Banks and other financial institutions keep their updating on RD interest rate depending on economic conditions.
  • Banks Or Financial Institutions: This is the primary factor that affects RD interest rates. It is safer to invest in a bank than a financial institution. But if you are determined in investing in any company or financial institution, you should check the credit ratings in deposits provided by them, at first. The companies who offer better credit ratings are safer than others.


Those who currently do not have a significant amount of money as income, but looking forward to a low-risk investment option, Recurring Deposit is a viable option for them.

They can research the maturity value of RD provided by different banks by using their RD calculator. This process will help them to choose a suitable bank for their investment plan.

Author: Naveen E

This is E.Naveen Kumar full time Content Writer, SEO, Digital marketing Expert, founder of financesrule.com. Really enjoying playing cricket at free times. Being a Btech Graduation from Computer Science stream Selected full-time blogging as my Profession.

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