RD Calculator

RD interest is calculated using compound interest on each monthly deposit. Each installment earns interest for the remaining tenure. Banks typically use quarterly compounding for RD calculations.

Most banks have a minimum RD amount of ₹100-500 per month. There's usually no maximum limit. Post office RD has a minimum of ₹100 with no upper limit.

Missing installments attracts a penalty. Most banks allow a grace period of a few days. Continuous default may lead to account closure. Some banks offer auto-debit facility to avoid missing payments.

RD is better for those who want to save monthly. FD gives slightly higher returns as the entire amount earns interest from day one. Choose RD for disciplined monthly savings, FD for lump sum investment.

Yes, RD interest is taxable as 'Income from Other Sources'. TDS is deducted at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H if not liable for tax.