Advanced RD Calculator - India's Best Recurring Deposit Calculator 2025

Most banks allow RD starting from ₹100-₹500 per month in 2025. Post Office RD starts from just ₹100, while private banks like HDFC, ICICI, and Axis typically require ₹500 minimum monthly deposit. Small Finance Banks offer RDs from ₹100 with higher interest rates up to 8.5%. There's no maximum limit for RD deposits, but some banks may have internal caps.

RD interest is calculated using compound interest formula with quarterly compounding as per RBI guidelines. The formula is M = R × [((1+i)^n - 1) / (1-(1+i)^(-1/3))], where M is maturity amount, R is monthly deposit, i is quarterly rate (annual rate ÷ 4), and n is number of quarters. Each monthly deposit earns interest until maturity, with compounding applied every three months.

Small Finance Banks like Equitas, ESAF, Au Small Finance Bank, and Jana Small Finance Bank offer highest RD rates in 2025, ranging from 7.5-8.5% for regular customers and 8-9% for senior citizens. Among major banks, PNB offers up to 7.25%, SBI up to 6.75%, while private banks like HDFC (7%), ICICI (6.85%), and Axis (6.9%) offer competitive rates. Post Office RD provides stable 6.9% with government backing.

Banks charge penalty of ₹1-2 per ₹100 per month for delayed RD deposits. For example, ICICI Bank charges ₹12 per ₹1000 for delayed installments, while SBI charges ₹1.50 per ₹100. If you miss 4-6 consecutive deposits, the account may be prematurely closed with penalty charges. Some banks offer flexi RDs without strict penalties for irregular deposits. It's advisable to set up auto-debit to avoid missed payments.

Regular RDs have fixed monthly deposits that cannot be changed once opened. However, some banks offer "Flexible RD" or "Step-Up RD" where you can deposit varying amounts within a predefined range or increase deposits annually. ICICI's iWish, HDFC's Flexi deposits, and Axis Bank's Encash-24 allow variable amounts. Alternatively, you can start a new RD for additional savings or close the existing one and open with a different amount (subject to penalties).

Senior citizens (60+ years) typically get an additional 0.5% interest over regular RD rates across most banks in 2025. Super senior citizens (80+ years) may get 0.75% extra with banks like SBI, HDFC, and ICICI. For example, if the regular rate is 6.5%, senior citizens get 7%, and super senior citizens get 7.25%. This additional interest significantly boosts returns over the investment tenure and makes RDs attractive for retirees.

Yes, most banks offer loans up to 90-95% of the RD balance after completing 6-12 months. Interest rates are typically 1-2% above the RD interest rate. For example, if RD rate is 6.5%, loan rate would be 7.5-8.5%. Post Office RD allows 50% loan after 1 year. SBI offers up to 95% loan, HDFC up to 90%, and ICICI up to 95%. The loan amount increases as your RD balance grows, providing emergency liquidity without breaking the RD.

RD interest is fully taxable as per your income slab under "Income from Other Sources" in 2025. TDS of 10% is deducted if annual interest exceeds ₹40,000 for regular citizens (₹50,000 for senior citizens). Under new tax regime, no deduction available, but under old regime, you can claim under Section 80TTA (₹10,000 for savings interest). You can submit Form 15G/15H to avoid TDS if your total income is below taxable limit. Interest earned must be declared in ITR.

RDs are better for risk-averse investors seeking guaranteed returns (6-8%) with capital protection in 2025. SIPs offer higher potential returns (10-12% historically) but carry market risk and volatility. For conservative investors prioritizing safety over returns, especially for goals within 5 years, RDs provide predictable growth. For long-term wealth creation (10+ years) with risk tolerance, equity SIPs are more suitable. Many investors use a combination - RDs for short-term goals and SIPs for long-term wealth creation.

Post Office RD offers stable 6.9% interest rate with government backing and starts from just ₹100 monthly in 2025. Maximum tenure is 5 years (extendable for another 5 years). Benefits include loan facility (50% after 1 year), advance deposit facility with discount, and no TDS below threshold. Bank RDs offer more flexibility in tenure (6 months-10 years), higher rates with small finance banks (up to 8.5%), online account opening, and additional features like auto-debit bonuses. Post Office RD is ideal for safety-conscious investors seeking government guarantee.

Yes, banks allow premature closure of RD accounts, but typically only after completing 6-12 months with penalty charges. Interest is usually calculated at savings account rate (3-4%) with additional penalty of 0.5-1% for the period invested. Some banks offer better premature closure terms after completing minimum tenure. Post Office RD requires 3 years for penalty-free premature closure. SBI allows closure after 6 months, HDFC after 6 months, and ICICI after 3 months with respective penalty structures. It's advisable to continue till maturity for optimal returns.

Auto-debit facility in RD offers multiple benefits in 2025: (1) Additional 0.05-0.1% interest rate bonus offered by most banks, (2) No missed payment penalties or charges, (3) Disciplined saving without manual intervention, (4) Convenience of automatic monthly transfers, (5) No risk of account closure due to missed deposits. Banks like SBI, HDFC, ICICI, and Axis offer interest rate benefits for auto-debit setup. Ensure sufficient balance in linked account to avoid failed transaction charges (typically ₹25-50 per failed attempt).

Step-up RD allows you to increase your monthly deposit amount annually by a predetermined percentage (typically 5-25%) to beat inflation and grow savings systematically. For example, starting with ₹5,000 monthly with 10% annual increase means ₹5,500 in year 2, ₹6,050 in year 3, and so on. Benefits include: (1) Inflation adjustment of savings, (2) Higher corpus accumulation, (3) Salary increment accommodation, (4) Disciplined wealth building. Our calculator shows step-up RDs can generate 20-30% higher corpus compared to regular RDs over 5-10 year periods.

Key differences between RD and FD in 2025: (1) Investment: RD requires monthly deposits vs FD needs lump sum, (2) Flexibility: RD suits systematic savers vs FD for lump sum investors, (3) Minimum amount: RD starts from ₹100 vs FD from ₹1,000-5,000, (4) Liquidity: RD offers better liquidity through loan facility vs FD penalty for premature withdrawal, (5) Interest rates: FD rates are typically 0.25-0.5% higher than RD rates, (6) Tenure: RD offers 6 months-10 years vs FD 7 days-10 years flexibility. Choose RD for disciplined monthly saving and FD for lump sum investment.