See what a monthly recurring deposit grows to at maturity, and compare the Post Office RD rate with a bank’s current RD rate for your tenure — or use your own rate.
Enter what you’ll save each month and for how long, then use your own rate or pick a bank to use its current RD rate.
Between ₹100 and ₹5,00,000 a month
5 years
Maturity value
₹3,59,664
After 5 years at 7% p.a.
Total deposited
₹3,00,000
Interest earned
₹59,664
Total value
₹3,59,664
Total
₹3,59,664
Press play or drag the slider to watch your instalments go in every month and the interest compound every quarter, year by year, until the whole balance comes back to you.
Before your first instalment
₹0
RD balance
Deposited
₹0
Interest
₹0
Each month
₹5,000
You will pay ₹5,000 at the start of every month for 5 years, at 7% a year. Each instalment earns interest from the month it goes in, and the interest is added every quarter, so it earns interest too. Press play to watch it grow.
| Year | Deposited | Interest | Balance at year end |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| 2 | ₹60,000 | ₹6,788 | ₹1,29,099 |
| 3 | ₹60,000 | ₹11,588 | ₹2,00,686 |
| 4 | ₹60,000 | ₹16,732 | ₹2,77,418 |
| 5 | ₹60,000 | ₹22,246 | ₹3,59,664 |
A recurring deposit (RD) lets you save a fixed amount every month for a fixed term, and earns a fixed rate of interest on everything you put in. At the end of the term — maturity — you get back all your instalments plus the interest, in one payment.
It is offered by almost every bank in India and by the Post Office. Think of it as a fixed deposit you build up month by month instead of paying in all at once: the rate is locked on the day you open the account, so later rate cuts don’t touch it, and there is no market risk.
Bank rates are taken from each bank’s official website and updated from time to time. If they can’t be loaded, switch the toggle to Custom rate and type the rate yourself — the calculation is the same.
Both are safe, fixed-rate ways to save monthly, but the rules differ:
| Bank RD | Post Office RD | |
|---|---|---|
| Tenure | Usually 6 months to 10 years, in steps of 3 months | Fixed 5 years, extendable by another 5 |
| Rate set by | Each bank, and it can change at any time | The Ministry of Finance, reviewed every quarter |
| Senior citizen rate | Usually higher than the general rate | Same rate for everyone |
| Minimum instalment | Often ₹100 to ₹1,000, depending on the bank | ₹100, then multiples of ₹10 |
| Safety | Deposit insurance (DICGC) up to ₹5 lakh per depositor per bank | Backed by the Government of India |
| Early closure | Allowed, usually with a penalty on the rate | Allowed after 3 years, at the savings account rate |
The Post Office RD runs for a fixed 5 years, so compare banks at that tenure. At ₹5,000 a month for 60 months you deposit ₹3,00,000. At the Post Office’s 6.7% it matures at ₹3,56,829, with ₹56,829 of interest. At SBI’s 5-year RD rate of 6.05% the same instalments mature at ₹3,50,778: a gap of ₹6,051.
Every quarter of a percentage point is worth about ₹2,300 on these figures, so pick a few banks in the calculator before you open the account. If you’re 60 or over, look at the senior citizen rates too: the Post Office pays everyone the same, while most banks add a premium.
Saving from a lump sum instead of from your salary? A fixed deposit earns more, because the whole amount compounds from day one. If the monthly amount is Post Office MIS income, the MIS + RD calculator shows the two together, and for goals more than 5 years away compare a SIP.
All four assume a 7% annual rate, compounded quarterly — an illustration, not any bank’s rate. Use the calculator above for your bank’s current rate.
| RD | Deposited | Maturity value | Interest earned |
|---|---|---|---|
| ₹2,000 a month for 1 year | ₹24,000 | ₹24,924 | ₹924 |
| ₹5,000 a month for 3 years | ₹1,80,000 | ₹2,00,686 | ₹20,686 |
| ₹5,000 a month for 5 years | ₹3,00,000 | ₹3,59,664 | ₹59,664 |
| ₹10,000 a month for 10 years | ₹12,00,000 | ₹17,37,017 | ₹5,37,017 |
Notice how the interest grows faster than the deposits as the tenure gets longer: early instalments earn compound interest for most of the term, while the last few earn for only a month or two.
RD interest is fully taxable as “income from other sources”, at your slab rate, in the year it accrues — even though you receive it only at maturity. There is no deduction for RD deposits.
Banks deduct TDS on RD interest once your total deposit interest with that bank crosses the yearly threshold, just as for fixed deposits. If your total income is below the taxable limit, you can submit Form 15G (or 15H if you’re a senior citizen) so the bank doesn’t deduct TDS. This calculator shows interest before tax.
₹3,56,829 at the current 6.7% rate.
Your rate stays fixed for the full 5 years at the rate on the day you open the RD.
The one with the higher rate for your tenure. At ₹5,000 a month for 5 years:
Some banks pay senior citizens more than the Post Office. Pick a bank and depositor type in the calculator to compare.
Banks and the Post Office compound RD interest every quarter. Each instalment earns interest from the month it’s paid until maturity:
The calculator uses exactly this method. See “How the numbers are calculated” below for the formula.
From each bank’s official website, checked once a month.
Banks can change rates at any time, so always confirm the rate with the bank before you open an RD.
Switch the toggle to Custom rate and type the rate yourself.
At most banks, yes.
Choose Senior citizen under Depositor to use the bank’s senior citizen rate.
A fixed 5 years (60 monthly instalments).
If you pick the Post Office with a different tenure, the calculator uses 60 months.
Rules vary by bank, but usually:
The calculator assumes every instalment is paid on time.
Yes, but it usually costs you some interest.
Yes, at your income tax slab rate.
The figures in this calculator are before tax.
They do different jobs.
Many people use both: an RD for money they’ll need soon, a SIP for the long term.
RDs carry no market risk.
Each instalment is paid at the start of a month and earns interest, compounded every quarter, until maturity. The maturity value is the sum of all instalments with their interest — the same convention Indian banks and the Post Office use.
In bank mode the rate is the bank’s published RD rate for the slab your tenure falls in, for the depositor type you choose. If the bank doesn’t offer your tenure, the nearest tenure it does offer is used.
One instalment
P × (1 + r ÷ 4) ^ (4 × k ÷ 12), where k = months until maturity
Maturity value
Sum of the above for k = 1 … n (n = tenure in months)
Interest earned
Maturity value − P × n
SIPCafe's calculators and guides are for education and planning only and are not investment, tax or legal advice. Results are estimates based on the assumptions you enter; actual returns vary and are not guaranteed. Consider speaking with a qualified financial adviser before making investment decisions. SIPCafe is not a registered investment adviser and does not recommend any specific security, fund or scheme. All investments carry market risk; read a fund's or scheme's official documents carefully before investing.
Rates come from the latest official notification or the bank's own rate page, as shown on this page. The government revises small savings rates every quarter and banks can change theirs at any time, so confirm the current rate with the Post Office or your bank before you invest.
Put your Post Office MIS interest into an RD and ₹9 lakh grows to ₹12.96 lakh in 5 years, ₹63,080 more than MIS alone. How the combo works and when an FD beats it.