Advanced RD Calculator

Each monthly instalment is treated like a small fixed deposit and compounded every quarter until maturity. Your first instalment earns for the full tenure and your last for one month. Adding them all up gives the maturity amount. Open "How we calculated this" to see it with your numbers.

Because your money goes in a little at a time. On average each rupee stays in the RD for about half the tenure, so the interest is roughly half of what the same total would earn as an FD for the full period. It is not a hidden charge.

At 6.7 percent for 5 years, 3,00,000 deposited grows to about 3,56,829. The government reviews the rate every quarter, but your RD keeps the rate you opened it at.

You pay a small late fee, usually 1 rupee (Post Office) to 2 rupees (banks) per 100 rupees for each month of delay. After several missed instalments the account can be closed or marked discontinued, which costs far more than the fee.

Banks allow it with a lower rate and a penalty, much like an FD. A Post Office RD can be closed only after 3 years, and then earns the savings account rate instead of the RD rate. The "Need the money early?" section works it out for you.

Yes, at your slab rate, every year as it builds up. Banks deduct 10 percent TDS once your interest from one bank crosses 50,000 rupees in a financial year (1,00,000 for senior citizens). If your total tax is nil, submit Form 121.

An RD is guaranteed but often earns little more than inflation after tax. An equity SIP has historically grown more over 5 years or longer, with real ups and downs. Many people use an RD for short goals and a SIP for long ones.