Compute the maturity value of a bank recurring deposit — as per the standard Indian bank formula with quarterly compounding.
₹5,000/month for 3 years at 7% matures to ₹2,00,686.
Recurring Deposits are the salaried-class savings tool — a fixed monthly deposit for 6 months to 10 years at bank / post-office rates comparable to FDs (6.5–7.5%). The RBI-mandated quarterly compounding rule applies. RDs enforce discipline for goal-based saving (annual insurance premium, festival spend, vacation).
RD interest is taxable at slab rates. TDS applies from Apr 2015 when annual interest exceeds ₹40,000. Post-office RDs of 5 years are especially popular for their DICGC-plus sovereign backing.
Young professional saving for wedding expenses.
Missing monthly instalment — banks charge penalty and stop compounding.
Premature closure — most banks refund at 1% below applicable rate.
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Prefer 5-year post-office RD for sovereign backing at competitive rate.
Set standing instruction from salary account — never miss an instalment.
Yes — RD interest is fully taxable at your slab rate.
Missing an instalment usually attracts a small penalty (₹1–₹2 per ₹100/month) and may reduce final maturity.
The bonus / variable pay is shown separately since it is typically paid annually, not monthly.
via In-Hand Salary CalculatorFor pure risk cover, always term insurance. Endowment/ULIPs mix insurance with investment and typically deliver poor returns on both.
via Life Insurance CalculatorThis dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.
Taxpex Consultancy. (2026). RD Calculator — Taxpex. Retrieved from https://taxpex.com/tools/investment/rd-calculator<a href="https://taxpex.com/tools/investment/rd-calculator">RD Calculator — Taxpex</a> — Taxpex Consultancy