RD Calculator India
Bank & Post Office RD Maturity, TDS & Tax
Work out what your recurring deposit pays at maturity, for a bank RD at your bank's rate or a 5-year Post Office RD at the current government rate, and see the TDS and tax on the interest.
Read the full answer — method, rates and figures
Quick answer: RDs in India compound quarterly: each monthly instalment R grows to R × (1 + r/4)^(n/3), where n is the months it stays invested. The Post Office 5-year RD pays 6.7% for 1 October – 31 December 2026 (Ministry of Finance memorandum of 30 September 2026, unchanged since October 2023): ₹5,000 a month matures at ₹3,56,829 on ₹3,00,000 deposited.
RD interest is taxed at your slab rate every year and does not qualify for 80C. On a bank RD, TDS under section 393(1) of the Income-tax Act, 2025 (formerly 194A) is 10% once the bank's interest to you in the year exceeds ₹50,000 (₹1,00,000 for seniors), counted across all your deposits at that bank.
RBI repo 5.50% after the 7 October 2026 hike. Sources: dea.gov.in, indiapost.gov.in, incometaxindia.gov.in, rbi.org.in (verified 7 Oct 2026).
Post Office RD: 60 monthly instalments (5 years) at 6.7%, compounded quarterly, the rate for accounts opened 1 October – 31 December 2026. Minimum ₹100 a month, in multiples of ₹10.
Rates include 4% health & education cess.
Maturity value
₹3.57 lakh
after 5y, gross
Interest earned
₹56,829
on ₹3.00 lakh deposited
TDS deducted
—
not estimated
Interest after tax
₹45,009
₹11,820 tax
What this RD really leaves you
- • The interest is taxable every year as it accrues, even though you receive it only at maturity. Report it in your ITR.
- • Maturity on a 5-year RD is a date worth tracking: the money stops earning the RD rate the day it matures.
Last reviewed 7 October 2026 by the Richify AI agent team.
Reviewed by Lily, Richify's AI Financial Teacher — an AI author, presented as one.
This is the textbook answer. Want to see this calculated against your actual accounts?
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Richify puts your RDs and FDs next to your home, PPF, mutual funds and foreign accounts, so you see one number, and when a deposit is about to mature.
Track my RDs in RichifyHow it works
The calculator works out three numbers for a recurring deposit:
- Maturity value: each instalment compounds quarterly for the months it stays in. The same method reproduces the Post Office's own published maturity table.
- TDS: for a bank RD, 10% of each year's accrued interest once your interest from that bank crosses ₹50,000 (₹1,00,000 for seniors). It is a prepayment, not the final tax.
- Tax and what you keep: your slab rate plus 4% cess on the interest as it accrues each year, less 80TTB for a senior citizen on the old regime.
How much will my RD give at maturity?
₹5,000 a month in a 5-year Post Office RD at 6.7% matures at ₹3,56,829: ₹3,00,000 of your own deposits and ₹56,829 of interest. In the 20% slab (20.8% with cess), ₹11,820 of that interest goes in tax over the 5 years. A bank RD of ₹10,000 a month for 3 years at 6.5% matures at ₹3,98,244.
The post office publishes the same figure per ₹100 a month: ₹7,137 after 60 instalments at 6.7%. Multiply by your monthly amount in hundreds and you have your maturity value.
Post office RD interest rate: October to December 2026
| Monthly deposit | Deposited (5 yrs) | Maturity at 6.7% |
|---|---|---|
| ₹1,000 | ₹60,000 | ₹71,366 |
| ₹2,000 | ₹1,20,000 | ₹1,42,732 |
| ₹5,000 | ₹3,00,000 | ₹3,56,829 |
| ₹10,000 | ₹6,00,000 | ₹7,13,658 |
| ₹25,000 | ₹15,00,000 | ₹17,84,146 |
The rate is set by the Ministry of Finance each quarter and has been 6.7% since October 2023; the 30 September 2026 memorandum kept it for 1 October – 31 December 2026. Whatever rate applies on the day you open the account stays for its full 5 years. Post office small-savings deposits are backed by the Government of India, while a bank RD is covered by DICGC deposit insurance up to ₹5 lakh per depositor per bank, together with your FDs there.
RD vs FD: which earns more?
At the same rate, an FD earns more rupees, because all of the money is invested from day one. ₹3,00,000 placed upfront in a 5-year FD at 6.7% earns ₹1,18,220 of interest; the same ₹3,00,000 paid in as ₹5,000 a month earns ₹56,829, because on average each rupee is invested for about half the term. That is not a worse rate: an RD is the way to build a sum you do not yet have. If you already hold the lump sum, the FD calculator shows what it earns after TDS and tax. Both are taxed the same way, at your slab rate every year.
RD vs SIP for a monthly saving
An RD and a SIP both take a fixed amount every month. The RD rate is fixed for the whole term and the capital does not fall; the interest is taxed at your slab rate every year. A SIP in an equity mutual fund has no promised return and can lose value over short periods, but long-term gains on equity funds held over 12 months are taxed at 12.5% only above ₹1.25 lakh a year, and only when you sell. For money needed within about three years, an RD fits; for a goal ten years out, the SIP calculator shows what different return assumptions give. RBI raised the repo rate to 5.50% on 7 October 2026, so it is worth comparing new bank RD rates before you open one. When the RD matures, the emergency fund calculator shows how much of it to keep liquid.
Primary sources, verified 7 October 2026: Ministry of Finance (DEA) — Office Memoranda on small-savings rates, 30.09.2026 and 29.12.2023; National Savings Recurring Deposit Scheme, 2019 (G.S.R. 918(E)). Income Tax Department — Income-tax Act, 2025 s.393(1) Table Sl. No. 5(ii); Form No. 121; s.80TTB. RBI — MPC resolution of 7 October 2026 and Current Rates. Education only, not tax advice.
FY 2026-27 is Tax Year 2026-27. The Income-tax Act, 1961 stands repealed on 01.04.2026, and income earned from that date falls under the Income-tax Act, 2025, which also replaces the "previous year / assessment year" pair with the single term "tax year". Section numbers on this page are the familiar 1961 ones, because that is what taxpayers, banks and brokers still use and search for; the 2025 Act renumbers them. Budget 2026 left slabs, cess, surcharge and the rebate unchanged. General information, not personalised tax advice — confirm with your CA.
How to use this calculator
- Choose a bank RD or a Post Office RD. A Post Office RD is always 5 years at the government rate; a bank RD can run from 6 months to 10 years at the rate your bank offers.
- Enter the amount you will deposit every month. The post office minimum is ₹100, in multiples of ₹10.
- For a bank RD, enter your bank's rate and the tenure. We do not pre-fill bank rates because they change often; the 6.5% default sits inside the 6.00–6.75% range the RBI publishes for major banks' term deposits over one year.
- Tick 'Senior citizen' if you are 60 or older (higher TDS threshold, and the ₹50,000 section 80TTB deduction under the old regime), then pick your regime and slab.
- For a bank RD, add any other interest you already earn at the same bank this year: the TDS threshold covers all your deposits there together.
❓ Frequently Asked Questions
How is RD interest calculated in India?
Banks and the post office compound recurring deposits quarterly. Each monthly instalment grows as R × (1 + r/4)^(n/3), where n is the number of months it stays in, and the maturity value is the sum across all instalments. ₹5,000 a month in a 5-year Post Office RD at 6.7% matures at ₹3,56,829: ₹3,00,000 deposited and ₹56,829 interest.
Because later instalments are invested for less time, an RD earns less interest in rupees than the same total placed upfront in an FD at the same rate.
What is the post office RD interest rate now?
6.7% a year, compounded quarterly, for accounts opened in the 1 October – 31 December 2026 quarter. The Ministry of Finance resets small-savings rates every quarter; its memorandum of 30 September 2026 kept them unchanged, and 6.7% has applied since October 2023.
The rate in force when you open the account applies for its full 5 years, so a later cut or rise does not change an existing RD.
Is TDS deducted on RD interest?
On a bank RD, yes. From 1 April 2026 TDS on deposit interest is under section 393(1) of the Income-tax Act, 2025 (formerly 194A): 10% once the interest a bank pays or credits to you in the year, across all your FDs and RDs there, exceeds ₹50,000, or ₹1,00,000 for a senior citizen.
It is deducted on interest as it accrues, even though an RD pays out only at maturity. For a post office, section 393(1) applies only to deposits under a scheme the Central Government has notified for it, so this calculator does not estimate TDS on a Post Office RD.
The tax is due either way. Form No. 121 replaces Forms 15G and 15H for a nil-tax declaration.
Is RD interest taxable, and does an RD save tax under 80C?
RD interest is fully taxable at your slab rate plus 4% cess, under 'Income from other sources', every year as it accrues. An RD does not qualify for section 80C; only the 5-year tax-saver FD and the 5-year post office time deposit do, and only under the old regime.
A resident senior citizen on the old regime can deduct up to ₹50,000 a year of deposit interest, RDs included, under section 80TTB.
What happens if I miss an RD instalment?
For a Post Office RD, the National Savings Recurring Deposit Scheme, 2019 charges a default fee of ₹1 for every ₹100 of the missed instalment for each month of default, payable with the missed deposit, and the maturity date moves out by the months in default. Banks set their own penalty for a missed RD instalment, so check your bank's terms.
Can I close a post office RD early or borrow against it?
You can close a Post Office RD after 3 years, but interest is then paid at the Post Office Savings Account rate (4.0%), not the RD rate. After 12 instalments and one year you can borrow up to 50% of the amount deposited, at the RD rate plus 2 points.
At maturity you can extend the account for up to 5 more years. Bank RDs can usually be closed at any time with a rate penalty set by the bank.
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Further Reading
Your RD is one line of your net worth
Richify puts your RDs and FDs next to your home, PPF, mutual funds and foreign accounts, so you see one number, and when a deposit is about to mature.
Track my RDs in RichifyTrack every RD and FD in one placeTrack your RDs
RDs, FDs, home and funds in one net worth