What is the interest rate on RD in 2025?

SBI RD rates are 6.5–7% for general and 7–7.5% for senior citizens. HDFC and ICICI offer 7–7.5%. Post Office RD offers 6.7% per annum for 5-year tenure.

Is RD interest taxable?

Yes. RD interest is fully taxable as per your income tax slab. TDS is deducted at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens).

What is the minimum amount for RD?

Most banks allow RD starting from ₹100 per month. Post Office RD minimum is ₹100/month. SBI minimum is ₹100/month with no maximum limit.

🏦 Savings Calculator

RD Calculator

Calculate your Recurring Deposit maturity amount, total interest earned and effective returns — for any bank or Post Office RD.

Quick bank presets

Monthly deposit

₹

Annual interest rate

Tenure 2 years

1 yr5 yrs10 yrs

Or type tenure (years)

yrs

Compounding

Maturity amount --

--Total invested

--Interest earned

--Total months

Investment vs interest breakdown

Invested --

Interest --

Effective annual return (XIRR approx.)

Based on monthly deposits

--%

Year-by-year growth

Year	Invested	Interest	Balance

How is RD maturity amount calculated?

Recurring Deposit uses compound interest with quarterly compounding (as per Indian banking norms). Each monthly installment earns interest from its deposit date until maturity. The formula accumulates all installments with their respective compound interest.

🏦 Quarterly compounding

Indian banks compound RD interest quarterly. The effective yield is slightly higher than the nominal rate. This calculator applies the RBI-standard quarterly compounding formula.

💰 Tax on RD

RD interest is fully taxable as per your income slab. TDS applies if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if income is below taxable limit.

🏛️ Post Office RD

Post Office RD offers 6.70% with government backing — safest option. Minimum ₹100/month. Allows premature withdrawal after 3 years and loan facility against deposit.

📊 RD vs FD

RD suits regular monthly savers. FD suits those with a lump sum. RD typically earns slightly less than FD at the same rate due to averaging effect of monthly deposits.

Frequently asked questions

How is RD maturity calculated?

RD maturity = Sum of all monthly installments with compound interest. Each installment earns interest from its deposit month until maturity. Indian banks use quarterly compounding. Maturity = R × [(1+r)^n – 1] / (1–(1+r)^(–1/3)), where r = quarterly rate, n = quarters.

What is the current RD interest rate in India?

As of 2025: SBI offers 6.8–7.1%, HDFC 7.0–7.5%, ICICI 7.0–7.5%, Post Office 6.7% (5-year). Senior citizens get 0.25–0.50% extra at most banks. Rates change — check your bank's website for the latest.

Is RD better than SIP?

RD gives guaranteed, fixed returns (6.7–7.5%) with zero risk. SIP in equity mutual funds can give 10–15% over long term but with market risk. RD is better for short-term goals (1–5 years) and risk-averse investors. SIP is better for long-term wealth creation (5+ years).

Can I withdraw RD before maturity?

Yes, premature withdrawal is allowed. Banks typically charge a 0.5–1% penalty on the applicable rate. Post Office RD allows premature closure after 3 years at a slightly reduced rate.