RD Calculator

A Recurring Deposit (RD) is a type of financial product offered by banks and financial institutions that allows individuals to save a fixed amount of money at regular intervals, usually monthly, over a predefined period. RDs earn interest, and the maturity amount is paid at the end of the tenure.

When you open an RD account, you commit to depositing a fixed amount of money regularly (monthly) for a predetermined period, typically ranging from 6 months to 10 years. The bank pays interest on these deposits, and you receive the total amount, including interest, at the end of the tenure.

The minimum and maximum tenure for RDs can vary from one bank to another. Typically, RDs have tenures that range from 6 months to 10 years. Some banks offer custom tenures as well.

The minimum deposit amount for RDs varies among banks and is usually quite affordable, starting as low as ₹100 or less. There is generally no maximum limit for RD deposits.

If you miss an RD installment, banks usually charge a penalty, and the interest earned on your RD may be reduced. The penalty and terms may vary among banks.

Most banks allow you to change the monthly deposit amount for your RD, provided you meet certain conditions. However, the overall tenure may need to be adjusted accordingly.

The interest rate on RDs can vary and may be fixed or variable, depending on the bank. Some banks offer higher rates for longer tenures or special promotions.

Yes, you can withdraw your RD prematurely, but it may come with penalties and a lower interest rate. The specific terms and penalties vary by bank.

The interest earned on RDs is subject to taxation as per your income tax slab. TDS (Tax Deducted at Source) may be applicable if the interest exceeds a specified threshold.

Yes, you can have multiple RD accounts with different banks to diversify your savings and meet various financial goals.

Some banks offer the option to use an RD as collateral to secure a loan. This is known as a "loan against RD."

Many banks offer the convenience of opening RD accounts online through their internet banking or mobile banking platforms.

RDs can be suitable for both short-term and long-term goals, depending on the tenure you choose and your specific financial objectives.

Before opening an RD, consider factors such as the interest rate, tenure, penalty for missed payments, and how the RD fits into your overall financial plan.

The maturity amount of an RD is not taxable, as it represents the principal amount you saved and the interest you earned during the tenure.