Home/Calculators/RD Calculator•Last updated: June 13, 2026

RD Calculator 2026 - SBI RD Interest Rate & Tax Calculator

Calculate RD maturity with SBI, HDFC, ICICI bank interest rates. Includes RD tax calculator for TDS on interest. SBI RD rate: 6.8% | HDFC: 7.1% | Post Office: 6.7%. Quarterly compounding for accurate results.

₹7.23L

Maturity Value

+₹1.23L

Interest Earned

₹6.00L

Total Deposited

20.58%

Effective Yield

RD Details

Monthly Deposit

₹

₹500₹1 Lakh

Tenure

Months

5 years 0 months

Interest Rate (% p.a.)

Current RD Rates (May 2026)

SBI RD6.50%

HDFC Bank7.00%

ICICI Bank6.90%

Post Office RD6.70%

Axis Bank7.10%

Why Choose RD?

✓Guaranteed returns (no market risk)
✓Builds disciplined savings habit
✓Flexible tenure (6 months to 10 years)
✓Start with as low as ₹100/month
✓Senior citizens get 0.5% extra interest

Maturity Breakdown

Deposited: ₹6.00L

Interest: ₹1.23L

Investment Summary

Monthly Deposit₹10.0K

Total Deposits₹6.00L

Interest Earned+₹1.23L

Maturity Amount₹7.23L

Balance Growth (Quarterly)

RD vs SIP Comparison

Parameter	Recurring Deposit	SIP (Mutual Fund)
Expected Returns	6-7% (Fixed)	10-12% (Variable)
Risk Level	Zero	Moderate
Liquidity	Penalty on early withdrawal	Anytime (except ELSS)
Taxation	Interest taxed at slab rate	10% LTCG above ₹1L
Best For	Short-term, risk-averse	Long-term wealth creation

How RD Interest is Calculated

M = P × ((1 + r/n)^(n×t) - 1) / (1 - (1 + r/n)^(-1/3))

M = Maturity value

P = Monthly deposit

r = Annual interest rate

n = Compounding frequency (4 for quarterly)

Note: Banks use quarterly compounding for RD. This means interest is calculated every 3 months and added to your balance.

Frequently Asked Questions

What is a Recurring Deposit (RD)?

RD is a type of term deposit where you deposit a fixed amount every month for a predetermined period. Interest is compounded quarterly and the maturity amount (principal + interest) is paid at the end of the tenure. It's ideal for building a savings habit with guaranteed returns.

How is RD interest calculated?

RD interest is compounded quarterly (every 3 months). Each monthly deposit earns interest from the date of deposit until maturity. The effective interest rate is slightly higher than the nominal rate due to quarterly compounding.

Is RD interest taxable?

Yes, RD interest is fully taxable as 'Income from Other Sources' at your applicable slab rate. TDS of 10% is deducted if annual interest across all FDs/RDs in a bank exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below taxable limit.

Can I break RD before maturity?

Yes, premature withdrawal is allowed, but you'll typically get 0.5-1% lower interest rate than the contracted rate. Some banks may also charge a penalty. Post office RD has stricter rules - premature closure is allowed only after 3 years.

What is the minimum and maximum RD amount?

Minimum RD amount varies by bank - most banks allow starting from ₹100/month. Post Office RD minimum is ₹100. There's usually no maximum limit. The deposit amount must be in multiples of ₹10 in most cases.

Is RD better than SIP?

RD offers guaranteed, risk-free returns (6-7%) while SIP in equity mutual funds offers potentially higher but variable returns (10-12%). Choose RD for short-term goals (1-3 years) or if you're risk-averse. Choose SIP for long-term goals (5+ years) where you can handle market volatility.

Bank RD Interest Rates 2026 - SBI, HDFC, ICICI Comparison

Compare RD interest rates across major Indian banks. Use these rates in the calculator above to find which bank offers the best returns for your tenure.

Bank Name	6-12 Months	1-2 Years	2-3 Years	3-5 Years	5-10 Years	Senior Citizen
SBI Bank	6.50%	6.80%	7.00%	6.50%	6.50%	+0.50%
HDFC Bank	6.60%	7.00%	7.00%	7.00%	7.00%	+0.50%
ICICI Bank	6.70%	7.00%	7.00%	7.00%	6.90%	+0.50%
Axis Bank	6.70%	7.10%	7.10%	7.10%	7.00%	+0.50%
Kotak Bank	6.75%	7.20%	7.10%	6.50%	6.20%	+0.50%
Post Office RD	-	-	-	-	6.70%	No extra

Note: Post Office RD is available only for 5-year tenure. Rates updated as of June 2026. Senior citizen rates are additional to regular rates. Small Finance Banks may offer 0.25-0.50% higher rates.

Best for 1-2 Years

Kotak: 7.20%

Axis Bank offers 7.10%

Best for 3-5 Years

Axis: 7.10%

HDFC, ICICI offer 7.00%

Government Backed

Post Office: 6.70%

5-year tenure only, fully safe

TDS on RD Interest - RD Tax Calculator

RD interest is taxable under "Income from Other Sources". Here's how TDS works and how to calculate your actual post-tax returns.

TDS Deduction Rules

TDS Threshold (Regular)₹40,000/year

Combined interest from all FD/RD in one bank

TDS Threshold (Senior Citizen)₹50,000/year

Higher limit for 60+ age

TDS Rate10%

20% if PAN not linked

Example: TDS Calculation

RD Monthly Deposit₹10,000

Tenure5 years

Interest Rate7.00%

Approx. Annual Interest (Year 3-5)₹25,000 - ₹35,000

TDS Deducted?No (Below ₹40K)

💡 Tip: If your annual RD interest exceeds ₹40,000, submit Form 15G (or 15H for seniors) at the start of each financial year to avoid TDS if your total income is below taxable limit.

How to Minimize Tax on RD Interest

📝

Submit Form 15G/15H

If total income is below ₹2.5L (basic exemption), submit Form 15G to bank. Seniors use Form 15H.

🏦

Split Across Banks

Keep RD interest below ₹40K per bank. TDS threshold is per bank, not cumulative.

👪

Family Member RDs

Open RDs in spouse's or parent's name who have lower income to utilize their basic exemption.

Effective Post-Tax RD Returns by Tax Slab

Actual returns after paying income tax on interest

Tax Slab	Tax Rate	RD at 7%	Effective Return	Lost to Tax
No tax (Below ₹2.5L)	0%	7.00%	7.00%	₹0
₹2.5L - ₹5L	5%	7.00%	6.65%	0.35%
₹5L - ₹10L	20%	7.00%	5.60%	1.40%
₹10L - ₹15L	30%	7.00%	4.90%	2.10%
Above ₹15L	30%	7.00%	4.90%	2.10%

Consider alternatives: If you're in 20-30% tax bracket, tax-free options like PPF (7.1%), SSY (8.2%), or ELSS mutual funds may give better post-tax returns. Try our PPF Calculator →

Related Calculators

Compare RD with other savings options

🏦

EPF Calculator NPS Calculator SWP Calculator Lumpsum Calculator CAGR Calculator Salary Calculator Tax Regime Compare FIRE Calculator

Your data stays on your device.