What is a Recurring Deposit?

An RD lets you invest a fixed amount every month for a chosen tenure (6 months to 10 years), earning quarterly-compounded interest.

Is RD interest taxable?

Yes. RD interest is taxed at your slab rate. TDS applies if total interest crosses ₹40,000 / ₹50,000 for senior citizens.

Yes, with a 1% penalty on the applicable rate; partial withdrawals are usually not allowed.

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See your RD maturity value & interest earned.

Reviewed by Nisha SLast verified 6 Sept 2026RBI-compliantFact-check policy

Monthly Deposit₹5,000

₹100₹5L

Interest Rate %7.0%

1%12%

Tenure (years)5 yrs

115

Total Invested₹3,00,000

Interest Earned₹59,664

Maturity Amount₹3,59,664

Compare rates across 50+ banks.

Personalised plan in 60 seconds.

RDs offer a fixed monthly investment with guaranteed returns — ideal for short-term goals.

M = Σ P × (1 + r/4)^(quarters remaining)

Everything you need to know about the RD Calculator.

Results are illustrative estimates for planning. Actual figures depend on bank/AMC terms, taxes and market conditions.