Calculating the RD Interest Rate

Banks typically compound the interest on recurring deposits quarterly, and the formula used to calculate the interest component at maturity is as follows:

M = R[(1+i)^n - 1]/(1-(1+i)^(-1/3))

Note:

M = Maturity value of the RD

R = Monthly installment credited in the RD

n = Number of quarters (in the total tenure)

i = Rate of Interest / 400

Best Recurring Deposit (RD) Interest Rates at Top Banks in India

Below is a table displaying the interest rates offered by some of the leading banks in India for recurring deposits:

Bank Name 

Interest rate range 

SBI RD Interest Rates 

5.45% to 5.65%  

HDFC Bank RD Interest Rates 

3.75% to 5.75% 

ICICI Bank RD Interest Rates 

4.00% to 6.10%  

Kotak RD Interest Rates 

5.00% to 6.10%  

Union Bank of India RD Interest Rates 

3.00% to 5.80% 

Axis Bank RD Interest Rates 

4.65% to 5.75%  

Central Bank of India RD Interest Rates 

4.65% to 5.60% 

Bank of Maharashtra RD Interest Rates 

4.25% to 5.40%  

How to Utilize the RD Calculator?

The RD Calculator serves the purpose of estimating the maturity amount you will receive from your recurring deposit (RD). It is an efficient tool offered by numerous banks, simplifying the process of calculating your RD maturity amount. By using the RD Calculator, you can obtain immediate results without any complications. It's important to note that RD interest is compounded quarterly, making the calculator a valuable resource for precise calculations.

Benefits of Employing the RD Calculator

Utilizing the RD Calculator offers several advantages, including:

Steps to Utilize the Online RD Calculator

To effectively use the online RD Calculator, follow these simple steps:

Rd Calculator FAQ's

The RD calculator is a convenient online tool that provides quick results, saving you time and simplifying complex calculations. You can use it multiple times to compare the returns from various recurring deposit investments.
Interest on an RD account is calculated using the compound interest formula, even though deposits are made monthly. Interest is typically compounded quarterly.
Yes, there will be a penalty for delayed monthly deposits, and the amount may vary depending on the bank and the duration of the delay.
No, moderate inflation does not significantly impact investment rates, but high inflation can lead to lower recurring deposit rates.
Yes, the interest earned from an RD account is subject to taxation.
You can open an RD account by visiting the bank branch, using mobile banking, or through internet banking.
Yes, most banks offer an additional interest rate for senior citizens.
To avoid TDS (Tax Deducted at Source) deduction, you should submit either Form 15H or Form 15G, depending on your eligibility.
The formula used for calculating compound interest on Recurring Deposits is A = P(1+r/n) ^ nt, where 'A' represents the final amount, 'P' is the principal, 'r' is the annual interest rate, 'n' is the number of times interest is compounded per year, and 't' is the tenure.
Yes, interest on RDs is typically compounded quarterly.
The formula used for calculating simple interest is I = P x R x T, where 'I' is the interest, 'P' is the principal, 'R' is the annual interest rate, and 'T' is the tenure of the deposit.
For recurring deposits, simple interest is calculated until the end of the current financial quarter if you open the account in the middle of a quarter, such as May. After that, interest is compounded quarterly as each new quarter begins.
Yes, similar to fixed deposits, RD interest rates are pre-fixed and vary based on the tenure.
Typically, missing one RD installment does not affect the account's status. However, some banks may close your RD account if you fail to pay a certain minimum number of installments.
Yes, you can add a nominee to your RD account.

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