How to use the RD calculator
Enter your monthly deposit, the interest rate and the tenure in months. The calculator works for bank RDs and the Post Office RD, both of which compound interest every quarter.
For example, ₹5,000 a month in a Post Office RD at 6.7% for 5 years (60 months) grows to about ₹3,56,829: ₹3 lakh deposited and ₹56,829 interest.
How RD interest is calculated
Every instalment earns interest compounded quarterly for the time it stays in the account. The first instalment earns for the full tenure, the last for just one month. Adding them up gives:
M = Σ R × (1 + r ÷ 400)k ÷ 3 for k = 1 to the number of months
R is the monthly deposit and r the yearly rate in percent. This matches the method banks and India Post use to show maturity values.
Post Office RD at a glance
| Interest rate | 6.7% a year (October–December 2026) |
|---|---|
| Tenure | 5 years, extendable by 5 more |
| Minimum deposit | ₹100 a month, in multiples of ₹10 |
| Early closure | Allowed after 3 years |
| Tax | Interest taxable at your slab rate |
Frequently asked questions
How is RD maturity calculated?
Each monthly instalment earns interest compounded every quarter for the time it stays invested. The calculator adds up R × (1 + r ÷ 400)^(months ÷ 3) for every instalment, where R is the monthly deposit and r the yearly rate.
What is the Post Office RD interest rate now?
The Post Office 5-year Recurring Deposit pays 6.7% a year for October–December 2026. The government reviews small savings rates every quarter.
Can I close an RD early?
Banks allow premature closure, usually with a 0.5–1% lower rate. A Post Office RD can be closed after 3 years; interest is then paid at the savings account rate if closed before maturity.
Is RD interest taxable?
Yes. RD interest is taxed at your slab rate, and banks deduct TDS once your total interest from that bank crosses the yearly limit.
RD or SIP: which is better?
An RD gives a fixed, known return with no market risk. An equity SIP can earn much more over 5+ years but its value goes up and down. Many people use an RD for goals within 1–3 years and a SIP for longer goals.
Last reviewed: 13-10-2026. Rates and rules are checked against official sources; tell us if something has changed. Contact