Recurring Deposit (RD) Calculator

RD interest rates are fixed at opening and don't change with RBI rate moves — which means the tenure decision is really a rate-direction bet. In a rising rate environment, shorter tenures preserve flexibility to re-invest at higher rates; in a falling environment, longer tenures lock in peak rates. Here's how RBI monetary policy transmits to bank deposit rates, the RD laddering strategy for both flexibility and rate optimisation, and premature withdrawal penalty mechanics.

RD interest is taxable as income at your slab rate — so a 7% RD for a 30% slab taxpayer delivers roughly 4.9% post-tax. Here's how TDS on RD works (Form 15G/15H, ₹40,000 threshold), the post-tax RD comparison against PPF and SSY (both EEE exempt at similar nominal rates), why RD still makes sense for short-to-medium goals and senior citizens, and how to evaluate bank rate spreads given DICGC insurance limits.

An RD earning 6% while carrying credit card debt at 20% guarantees a 14-percentage-point loss on every dollar split between the two — and yet many people do exactly this. Here's the basic math, and the legitimate (non-math) reasons people still maintain savings alongside high-interest debt: emergency funds, behavioral motivation from visible savings growth, early-closure penalties on existing RDs, and why the comparison gets genuinely closer for low-interest debt like mortgages.

Banks use quarterly compounding for most RD products — here's the exact formula to verify your maturity amount independently. Includes monthly vs quarterly compounding comparison, effective annual rate conversion, and how premature withdrawal penalties are calculated.

RDs guarantee returns; SIPs offer higher potential returns with market risk; regular savings accounts provide full liquidity. Here's a comparison of all three by risk, return, tax treatment, and suitable horizon — including why rupee cost averaging makes SIPs particularly effective in volatile markets.