Frequently Asked Questions
Most banks and post offices allow starting an RD with ₹100 or ₹500 monthly. The upper limit varies.
Banks typically use quarterly compounding. This calculator uses monthly compounding for a more accurate estimation.
Yes, premature withdrawal is allowed in most RD schemes. However, banks will:
- Charge a penalty fee
- Pay lower interest than the committed rate
Additionally, the full interest amount may not be earned if you withdraw too early. Always check your bank’s RD withdrawal policy before breaking it.
That depends on your saving pattern:
- RD is best for those who want to invest small amounts regularly.
- FD is ideal if you have a lump sum amount to invest at once.
Both offer similar interest rates, but RDs help in building a habit of disciplined saving.
Yes, most banks—including SBI, ICICI, HDFC—offer e‑RD or online recurring deposit services. You can open an RD through net banking or the mobile app linked to your savings account.
Just enter the monthly deposit, interest rate, and tenure. The calculator will show your RD maturity amount and total interest.
Yes. The interest earned on an RD is considered “Income from Other Sources” and is fully taxable as per your income tax slab.
If the total interest in a financial year exceeds:
- ₹40,000 (for regular individuals)
- ₹50,000 (for senior citizens)
then the bank deducts TDS at 10%. You can claim a refund while filing ITR if your income is below taxable limits.
Most banks offer a short grace period for missed instalments. However, being late or missing multiple payments may lead to interest recalculation or account closure.
Yes, you can add or change a nominee anytime either online or via your bank branch.
Yes, NRIs can open NRE/NRO RD accounts. NRE RDs are tax-free and fully repatriable. NRO RDs are taxable and subject to TDS.
Once opened, the interest rate stays fixed until maturity, even if market rates fall.