RD Calculator

Each monthly instalment is compounded quarterly for the months it stays in the account. The formula banks use is M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)], where i is the quarterly rate and n the number of quarters — mathematically the same as adding up every instalment compounded for its own period, which is what this tool does.

Very close. Banks compound quarterly and pay interest for part-quarters on a simple basis; this tool uses a fractional exponent for part-quarters, which can differ by a few rupees on a long deposit. Instalments paid after the due date also earn slightly less.

Banks charge a small penalty per delayed instalment and the missed month earns no interest; after several consecutive defaults the account can be closed early. The exact penalty is set by each bank in its RD terms.

Yes. RD interest has been subject to section 194A since 2015: banks deduct 10% once your total interest from that bank crosses ₹50,000 in a year (₹1,00,000 for senior citizens). Form 15G or 15H stops the deduction if your income is below the taxable limit.

At your slab rate, added to income under other sources in the year it accrues. There is no section 80C benefit on an RD, unlike a five-year tax-saver FD or PPF.