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India finance

RD Calculator

Recurring deposit maturity for the Post Office or any bank, with quarterly compounding and the current 6.7% Post Office RD rate.

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Quick answer

RD maturity = Σ P × (1 + r/4)^(m/3) over each month’s instalment. ₹5,000 a month in the Post Office 5-year RD at 6.7% matures at ₹3,56,829 on ₹3,00,000 deposited; ₹100 a month gives ₹7,136.58.

Rates as of 1 October to 31 December 2026 (Q3 FY 2026-27), notified 30 September 2026. Post Office 5-year RD: 6.7% a year. The government resets small savings rates every quarter; a deposit keeps the rate it was opened at, except PPF and SSY, which follow each quarter’s rate.

Sources: Department of Posts, SB Order No. 12/2026 (30 September 2026), enclosing Ministry of Finance OM F.No.1/4/2019-NS; India Post, Post Office Savings Schemes (current rates).

Post Office minimum ₹100, then multiples of ₹10.

Post Office RD: 60 months. Banks: 6 to 120.

Maturity value
₹3,56,829
₹3.57 L
You deposit
₹3,00,000
₹3 L
Interest earned
₹56,829

Interest compounds every quarter, and each instalment earns only from the month it is paid, the convention the Post Office and banks use. RD interest is taxable at your slab every year, whether or not TDS is deducted.

Value at each year end (5 rows)
AfterDepositedValue
12 months₹60,000₹62,210
24 months₹1,20,000₹1,28,694
36 months₹1,80,000₹1,99,746
48 months₹2,40,000₹2,75,679
60 months₹3,00,000₹3,56,829

Formulas last verified 2026-10-10. Results are estimates, not financial advice. How we calculate.

The formula behind the passbook

Maturity = Σ P × (1 + r/4)^(m/3), for m = 1 to n months

P is the monthly instalment and r the yearly rate. The instalment paid in the first month earns for all n months, the last for one. Because interest compounds every quarter, a single month counts as a third of a quarter. This is the method behind the Post Office's own figure of ₹7,136.58 for ₹100 a month over five years at 6.7%, and the calculator above reproduces it to the paisa.

What common instalments mature to (5 years, 6.7%)

MonthlyDepositedMaturity
₹1,000₹60,000₹71,366
₹5,000₹3,00,000₹3,56,829
₹10,000₹6,00,000₹7,13,658

Post Office RD or bank RD?

  • Post Office: five years only, minimum ₹100 a month, sovereign-backed, rate set by the government each quarter and locked when you open.
  • Banks: any tenure from six months to ten years, rates set by each bank (often a little higher for senior citizens), deposits insured up to ₹5 lakh per bank. Enter your bank's rate and tenure in months.

Already have a lump sum rather than a monthly amount? The FD calculator uses the same quarterly compounding. If you want monthly income instead of growth, see the Post Office MIS calculator, and for a five-year lump sum that compounds yearly, the NSC calculator.

Frequently asked questions

How is RD interest calculated?

Indian banks and the Post Office compound recurring deposits quarterly. Each monthly instalment earns from the month it is paid until maturity, so the first instalment of a 5-year RD compounds for 20 quarters and the last for one month (a third of a quarter). Summing every instalment gives the maturity: ₹100 a month at 6.7% for 60 months is ₹7,136.58.

What is the Post Office RD interest rate now?

6.7% a year, compounded quarterly, for 1 October to 31 December 2026 (Q3 FY 2026-27), as notified on 30 September 2026. The rate you open at stays fixed for the whole five years, even if later quarters change it.

Is RD interest taxable?

Yes. RD interest is added to your income and taxed at your slab rate every year it accrues. Banks deduct TDS once your total interest with them crosses the yearly threshold. TDS is only an advance: the interest is taxable whether or not any was deducted, and you declare it in your return.

What if I miss an RD instalment?

The Post Office charges a default fee of ₹1 for every ₹100 of instalment for each month missed, and after four consecutive missed instalments the account is discontinued (it can be revived within two months). Banks set their own penalties. Either way, a missed month also earns less interest.

RD or SIP for a monthly saving?

An RD guarantees the rate and the maturity figure; a SIP in an equity fund has historically returned more over long periods but can be down at the moment you need the money. For goals under three years, the RD’s certainty usually wins; for ten-year goals, a SIP’s expected return usually does.

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