How to use
- Enter the amount you will deposit every month.
- Enter the interest rate from your bank or post office.
- Enter the period in months (for example 60 for 5 years).
- See the maturity amount and interest earned.
Formula
Banks and the post office compound RD interest every quarter. Each monthly deposit grows until maturity: Maturity = Σ P × (1 + r ÷ 400)m ÷ 3, where m is the number of months that deposit stays invested.
Tips and common uses
Who an RD suits
An RD works well if you cannot invest a lump sum but can save a fixed amount every month, for a goal such as a holiday, school fees or an emergency fund.
Compare before you open one
Interest rates differ between banks and the post office, and senior citizens often get a higher rate. Enter each rate here with the same monthly amount and period to see the difference in maturity value.
Plan for tax and missed instalments
RD interest is added to your income and taxed as per your slab, and banks may deduct TDS above a limit. Late instalments usually attract a small penalty, so set up an auto-debit.
Frequently asked questions
What is the post office RD rate?
The post office 5-year RD earns 6.7% a year for July–September 2026. Bank RD rates are usually similar to their FD rates for the same period.
Is RD interest taxable?
Yes. RD interest is added to your income and taxed at your slab rate. Banks may deduct TDS if your total interest crosses the limit.
What if I miss an instalment?
Most banks charge a small penalty. Missing several instalments can close the RD early.