What happens if I miss an RD instalment?

Most banks charge a small penalty for missed RD instalments, and the account may be closed if too many are missed consecutively — check your specific bank's terms.

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RD Calculator

Q: Is RD interest taxable?

Yes — RD interest is added to your taxable income and taxed at your slab rate, with TDS applicable once interest crosses the prescribed annual threshold.

See what a monthly recurring deposit will be worth at maturity, using the standard quarterly-compounding formula banks use.

Deposit details

Monthly instalment ₹5,000

Interest rate (annual) 6.5%

Tenure (months) 24 mo

Maturity value

Amount at maturity

₹0

Total deposited₹0

Interest earned₹0

Uses quarterly compounding on the reducing instalment balance, the convention most Indian banks follow for RDs.

How RD maturity is calculated

A recurring deposit is really a series of small deposits, each compounding for a different length of time depending on when it was made. Banks in India typically apply this using quarterly compounding on the reducing balance.

A = R × [ (1+i)ⁿ − 1 ] / [ 1 − (1+i)^(−1/3) ]
R = monthly instalment, i = quarterly interest rate (annual rate ÷ 4 ÷ 100), n = number of quarters (months ÷ 3)

This is an approximation used widely by Indian bank RD calculators; your bank's exact figure may differ slightly depending on its compounding convention.

Frequently asked

How is RD different from FD?

An FD is a one-time lump-sum deposit; an RD builds up through fixed monthly instalments, making it suited to regular savers rather than lump-sum investors.

Is RD interest taxable?

Yes, RD interest is added to your taxable income and taxed at your slab rate, with TDS applicable above the prescribed threshold.

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Figures are estimates for planning purposes only and do not constitute financial advice.