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Recurring Deposit, or more commonly known as RD, is a financial investment option that works like an FD but provides fairly high flexibility. By recurring, it means something that occurs repeatedly over a course of time. Thus, investing in an RD means investors can opt to invest in instalments rather than depositing a lump sum amount. Are you looking for an investment opportunity where you can make regular savings and earn interest? A Recurring Deposit (RD) may be the answer for you. You can make small contributions at regular intervals and get rewarded with interest on your savings. Recurring Deposit Calculator Plan your Savings. Find out how much you can save by making regular monthly deposits with our Recurring Deposit plan. Just key in the amount you want to save and the tenure you wish to invest for. The RD calculator will give you total savings for the set interest rate.

A recurring deposit is a type of term deposit offered by banks / financial institutes which assist people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable.

A recurring deposit is an investment cum savings option for those who want to save regularly over a certain period of time and earn a higher interest rate. Every month, a fixed amount of money is deducted either from a Savings Account or a current account.

Recurring deposit (RD) allows customers an opportunity to build their savings via regular monthly deposits of a fixed sum over a fixed period of time.

Recurring deposit matures on a specific date in the future along with all the deposits made every month

It is similar to a fixed deposit of a certain amount in month-to-month installments.

The minimum tenure of this deposit is six months and maximum is ten years.

Compound interest is added to recurring deposit at the end of every financial quarter.

Rate of interest of 5% to 7.25% is offered on RD by various financial institutions.

M =R[{(1+i)^n} – 1] ÷ 1-{(1+i)^(-1/3)}

M = Maturity value of the RD

R = Monthly RD installment to be paid

n = Number of months (tenure)

i = Rate of Interest / 400

Let’s consider an example to understand this better,

You invest a principal amount of 500 for a period of 60 months at an interest rate of 6% and it is compounded quarterly.

M =R[{(1+i)^(n/3)} – 1] ÷ 1-{(1+i)^(-1/3)}

M =500[{(1+(6/400))^(60/3)} – 1] ÷ 1-{(1+(6/400))^(-1/3)}

M =500[{(1+(0.015))^(20)} – 1] ÷ 1-{(1+0.015)^(-1/3)}

M =500[{(1.015)^(20)} – 1] ÷ 1-{(1+0.015)^(-1/3)}

M= 35,031.78

Maturity amount in this case at the end of 30 months will be 35,031.78.

Banks / Financial companies	Normal Interest Rates		Senior Citizen Interest
Banks / Financial companies	less than 5 Years	More than 5 Years	less than 5 Years	More than 5 Years
State Bank of India	5.30%	5.80%	5.40%	6.20%
AXIS Bank	5.50%	6.00%	5.50%	6.00%
ICICI Bank	5.35%	5.85%	5.50%	6.30%
HDFC Bank	5.35%	5.85%	5.50%	6.00%
Union Bank of India	5.45%	5.95%	5.45%	5.95%
IDBI Bank	5.30%	5.90%	5.30%	5.90%
Kotak Mahindra Bank	4.90%	4.50%	5.40%	5.00%
Yes Bank	7.00%	6.75%	7.75%	7.25%
Federal Bank	5.35%	5.50%	5.85%	6.00%
IndusInd Bank	6.75%	6.65%	7.25%	7.15%
Punjab National Bank	5.30%	5.30%	6.05%	6.05%
Bank of Baroda	5.30%	5.30%	5.80%	6.30%
Bank of Maharashtra	5.00%	5.00%	5.50%	5.50%
Indian Overseas Bank	5.45%	5.45%	5.95%	5.95%
IDFC Bank	6.75%	6.25%	7.25%	6.75%

Note: Please refer to the respective bank websites and confirm the interest rates before investing. The above chart is updated in August 2020.

High Interest rates.

Useful for short term goals.

A Flexible amount can be invested.

Loan on Recurring deposit

Penalty / Charges vary from bank to bank. However, it is observed that maximum of 2% of agreed upon interest rate is charged on premature withdrawing.

Please refer the below links for detailed chart on interest rates:

SBI – https://www.sbi.co.in/web/personal-banking/investments-deposits/deposits/recurring-deposit

Axis – https://www.axisbank.com/retail/calculators/recurring-deposit-calculator Online rummy game to earn money.

ICICI – https://www.icicibank.com/Personal-Banking/account-deposit/recurring-deposits/index.page

HDFC – https://www.hdfcbank.com/personal/resources/rates

Union Bank – https://www.unionbankofindia.co.in/english/personal-recurring-deposit-scheme.aspx

IDBI Bank – https://www.idbibank.in/interest-rates.asp

Kotak Mahindra Bank – https://www.kotak.com/en/personal-banking/deposits/recurring-deposits/interest.html

Yes Bank – https://www.yesbank.in/personal-banking/yes-individual/deposits/recurring-deposit

Federal Bank – https://www.federalbank.co.in/deposit-rate

IndusInd Bank – https://www.indusind.com/in/en/personal/rates.html

Punjab National Bank – https://www.pnbindia.in/Interest-Rates-Deposit.html

Bank of baroda – https://www.bankofbaroda.in/interest-rates-charges.htm

Bank of Maharashtra – https://www.bankofmaharashtra.in/domestic_term_deposits

Indian OverSeas Bank – https://www.iob.in/Domestic_Rates

IDFC Bank – https://www.idfcfirstbank.com/content/dam/IDFCFirstBank/Interest-Rates/Interest-Rate-Retail.pdf

Recurring Deposit Interest Rates for 1 Year (as on 06 Mar 2021)

The highest interest rate is offered by North East Small Finance Bank Limited (for 12 months) at 7.5% and Utkarsh Small Finance Bank (for 12 months) at 7.25% followed by Suryoday Small Finance Bank (for 12 months) at 7.25%.

Bank	Interest Rate (p.a.)	Calculate
Idfc Bank	7.25%
Indusind Bank	7.00%