48% of the FD interest
Your first instalment earns interest for 5 years, your last for one month. Paying ₹3,00,000 into an FD on day one would earn ₹1,24,433 at the same rate; the RD earns ₹59,664.
RD calculator
₹5,000 a month for 5 years at 7% a year grows to ₹3,59,664. You pay in ₹3,00,000; the interest is ₹59,664, before tax.
- Verified 29 September 2026
- Same method as banks
- By the Accurio.in team
Maturity amount
₹3.6 lakh
After 5 years of ₹5,000 a month at 7% a year, compounded every quarter
- Paid in
- ₹3,00,000
- Interest
- ₹59,664
Value at maturity₹3,59,664
Your bank’s figure can differ slightly. Why?
Try a what-if
₹71,933 more
at maturity with ₹1,000 more a month: ₹4,31,597 in all, of which ₹60,000 is the extra you pay in.
₹2,383 more
for each 0.25% of extra rate over 5 years. Rates for the same tenure differ from bank to bank.
See how it grows
Paid inInterestDrag across the chart
| Year | Paid in | Interest | Value |
|---|---|---|---|
| Year 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| Year 2 | ₹1,20,000 | ₹9,099 | ₹1,29,099 |
| Year 3 | ₹1,80,000 | ₹20,686 | ₹2,00,686 |
| Year 4 | ₹2,40,000 | ₹37,418 | ₹2,77,418 |
| Year 5 | ₹3,00,000 | ₹59,664 | ₹3,59,664 |
The same RD at other rates:
| Rate | Maturity amount | Interest |
|---|---|---|
| 6% a year | ₹3,50,318 | ₹50,318 |
| 6.5% a year | ₹3,54,954 | ₹54,954 |
| 7% a year | ₹3,59,664 | ₹59,664 |
| 7.5% a year | ₹3,64,449 | ₹64,449 |
| 8% a year | ₹3,69,309 | ₹69,309 |
How this is calculated
The formula
Maturity = I × ((1 + r)n − 1) ÷ (1 − (1 + r)−1/3)
- I = monthly deposit, r = interest rate % a year ÷ 400 (one quarter’s interest), n = number of months ÷ 3.
- Each deposit is paid at the start of its month and earns interest, added every quarter, until maturity.
- Interest in all = maturity amount − everything paid in.
Assumptions
- Every deposit is paid on time at the start of the month, and nothing is withdrawn early.
- The rate you enter stays the same for the whole tenure.
- Tax on the interest, and any tax deducted at source (TDS), is not included (see “Will the bank deduct TDS on this interest?” below).
Why can my bank’s figure differ slightly?
Banks add RD interest every quarter with this formula, but some round each interest credit to the rupee, and for a tenure that is not a whole number of quarters some count the last part in days. An instalment paid late also changes the figure. Each of these moves the interest by a small share, so the gap grows with the deposit.
Will the bank deduct TDS on this interest?
These rules are for residents of India. TDS is deducted only once the interest one bank, co-operative bank or post office credits or pays you in a tax year (a bank without core banking counts each branch on its own) is more than ₹50,000, or ₹1,00,000 if you are 60 or older during that year. Then it deducts TDS on the whole of that year’s interest, at 10%, or 20% if it does not have your PAN.
TDS is not an extra tax: it counts as tax you have paid.
If the tax on your whole income for the year will be nil, you can give the bank a written declaration, with your PAN, so that it does not deduct. Unless you are 60 or older at some point in the year, that works only while the year’s interest, together with the other income the rule counts (such as dividends and rent), stays within the amount on which no tax is charged.
The RD figures above are before TDS.
From the Income-tax Act, 2025 (sections 393(1), 393(6), 397(2) and 390(5)) and, for the rate, the Finance Act, 2026. Checked 4 October 2026.
Is the RD rate the same as the FD rate?
It can be: SBI, for example, pays its term-deposit rate for the same tenure on RDs. Check your bank’s rate card and use its RD rate for the RD’s tenure.
What happens if I miss an instalment?
Banks charge a penalty for a late instalment. SBI, for example, charges ₹1.50 for every ₹100 a month for RDs of up to 5 years and ₹2 for longer ones, and says these rates can change. The figures here assume every deposit is on time.
What changed (latest: 1 April 2026)
The rules this page uses, by the date each took effect, newest first. Each was last checked against its official source between 4 October 2026 and 5 October 2026.
-
5 changes
- TDS on interest from a bank, co-operative bank or post office: the yearly threshold (s.393(1) Table Sl. No. 5(ii))
- TDS rate on interest other than interest on securities, resident individuals (rates in force, Finance Act 2026)
- TDS when the payee does not give a valid PAN (s.397(2)(b)(i))
- Declaration for no TDS on interest when the year's tax is nil (s.393(6))
- Tax deducted at source counts as tax paid by the person it was deducted from (s.390(5))
Mistakes we have fixed on any page are listed on Corrections.