How is Recurring Deposit (RD) interest calculated?

Recurring Deposit interest is compounded quarterly per RBI guidelines. Each monthly installment earns interest for the duration it remains with the bank, using the quarterly compounding annuity formula.

Is RD interest taxable?

Yes, interest earned on RD is fully taxable under Income from Other Sources according to your income tax slab slab rate. TDS is applicable if total interest across FDs and RDs exceeds ₹40,000 per year.

What is the tenure range for a Recurring Deposit?

RD tenures typically range from a minimum of 6 months to a maximum of 10 years in multiples of 3 months.

What is the maturity amount for a ₹20,000/month RD for 5 years?

At an interest rate of 6.8% per annum compounded quarterly, depositing ₹20,000 per month for 5 years (total invested: ₹12.00 L) yields ₹2.31 L in interest, reaching a total maturity value of ₹14.31 L.

How is Recurring Deposit interest compounded in India?

In Indian banks and Post Office, RD interest is compounded on a quarterly basis (every 3 months) using the standard formula M = P * (1 + r/400)^(n/3) summed across all monthly installments.

Is TDS applicable on RD interest?

Yes, TDS under Section 194A is deducted at 10% if total interest from RDs and FDs in a financial year exceeds ₹40,000 for regular individuals (₹50,000 for senior citizens).

Recurring Deposit Maturity Guide 2026

20,000 RD Maturity Amount & Returns

Quarterly compounding interest, 1 to 5-year maturity values, and total profit on a monthly deposit of ₹20,000.

5-Yr Maturity Value₹14.31 L(at 6.8% p.a.)

Monthly Deposit

₹20,000

₹20,000/mo

1-Yr Maturity

₹2.49 L

Interest: +₹8,975

3-Yr Maturity

₹8.00 L

Interest: +₹80,236

5-Yr Maturity

₹14.31 L

Interest: +₹2.31 L

20,000 RD Maturity Value by Tenure

Tenure Horizon	Total Invested	Interest Earned (6.8%)	Total Maturity Value
1 Year (12 Months)	₹2.40 L	+₹8,975	₹2.49 L
3 Years (36 Months)	₹7.20 L	+₹80,236	₹8.00 L
5 Years (60 Months)	₹12.00 L	+₹2.31 L	₹14.31 L

Customize Your 20,000 Recurring Deposit

Recurring Deposit (RD) Calculator 2026

Calculate post office and bank monthly Recurring Deposit (RD) quarterly compounded maturity returns

Monthly RD Deposit Amount

₹

Quick Presets:

₹500₹1.00 L

Annual RD Interest Rate (%)

3%15%

Time period

Yrs

1 Yr10 Yrs

Your money becomes

1.2×

of what you put in over 5 years.

Final value₹3.60 L

Invested vs Interest

Total invested

₹3.00 L

Interest earned

₹59,783

Interest is 16.6% of final value

Year-by-year breakdown

Year	Contributed	Total contributed	Interest earned	Value
1	₹60,000	₹60,000	₹2,594	₹62,594
2	₹60,000	₹1.20 L	₹6,960	₹1.30 L
3	₹60,000	₹1.80 L	₹11,631	₹2.01 L
4	₹60,000	₹2.40 L	₹16,627	₹2.78 L
5	₹60,000	₹3.00 L	₹21,972	₹3.60 L

Growth over time

The gap between the two lines is the interest earned — and it widens every year.

Recurring Deposit (RD) Calculator FAQs

A Recurring Deposit is a disciplined monthly savings scheme offered by banks and India Post where you deposit a fixed amount every month for a set tenure and earn guaranteed quarterly compounded interest.

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