ToolkitBeeHow 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.
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.