When an RD makes sense
Recurring deposits build the saving habit for near-term goals: a holiday, a gadget, school fees or an emergency fund. Post Office RDs (5 years) are government-backed; bank RDs are insured up to ₹5 lakh per bank by DICGC.
Compare with a fixed deposit if you have the full amount upfront.
How to use the RD Calculator tool
- Enter the monthly deposit, interest rate and tenure in months.
- See the maturity amount and the total interest.
Why SaralKit?
- Free forever: no "credits", no trial, no premium tier, no watermark and no daily limit.
- No account, ever: nothing to sign up for. Just open the page and use it.
- No data stored: your files and the numbers you type are processed by your own browser. We never upload, store or see them.
- Works offline: once the page has loaded, most tools keep working without internet.
- Open source: anyone can read the code on GitHub.
Frequently asked questions
How is RD interest calculated?
Indian banks compound RD interest quarterly. Each monthly instalment earns interest for the months it stays deposited: maturity = Σ P × (1 + r/400)4 × (months remaining)/12. This matches bank RD calculators closely.
Is RD interest taxable?
Yes, at your income-tax slab rate. Banks deduct TDS if total interest from the bank crosses the yearly threshold.
RD or SIP?
An RD gives guaranteed returns and suits short goals (1–3 years). An equity SIP can earn more over 5+ years but is market-linked.