FD & RD Calculator
Plan your safe investments. Calculate maturity amounts and wealth gained for Fixed and Recurring Deposits.
All FD, RD & Interest CalculatorsFixed Deposit (FD)
Lump sum investment with guaranteed returns.
Recurring Deposit (RD)
Monthly investments with compounding interest.
Understanding Fixed Deposits and Recurring Deposits
Fixed Deposits and Recurring Deposits are two of the most popular savings instruments in India, offered by almost every bank and post office. They are considered low-risk because your returns are guaranteed at the time of investment — unlike mutual funds or stocks where returns depend on market performance.
The key difference is how you invest. With an FD, you deposit a lump sum amount once and leave it untouched for a chosen period (7 days to 10 years at most banks). With an RD, you commit to depositing a fixed amount every month for a set tenure, making it ideal if you earn a regular salary and want to build savings gradually.
Indian banks typically compound FD interest quarterly — meaning every three months, the interest earned so far is added to your principal, and future interest is calculated on this larger amount. This is why a 6.5% FD actually earns slightly more than 6.5% per year when held to maturity.
When to Choose FD vs RD
Choose FD when you…
- Have a lump sum amount to invest (bonus, savings, inheritance)
- Want the highest guaranteed return for a fixed period
- Are looking for tax-saving options under Section 80C (5-year FD)
- Need predictable monthly income (non-cumulative FD)
Choose RD when you…
- Want to save a fixed amount from your monthly salary
- Don't have a large sum to invest at once
- Want to build discipline in regular saving
- Are saving towards a specific goal (vacation, emergency fund)
All Calculators
Guides & Articles
Frequently Asked Questions
How is FD interest calculated in India?
Most Indian banks use quarterly compounding for FDs. The formula is: A = P × (1 + r/n)^(n×t), where P is your deposit amount, r is the annual interest rate, n is 4 (quarterly), and t is the tenure in years. This means your interest earns interest every quarter, giving you slightly higher returns than simple interest.
What is the difference between FD and RD?
A Fixed Deposit requires a one-time lump sum investment, while a Recurring Deposit lets you invest a fixed amount every month. FDs typically earn slightly more interest because the full principal earns interest from day one. RDs are better suited for salaried individuals who want to save a fixed amount from each month's income.
Are FD returns taxable?
Yes. Interest earned on FDs is taxable under 'Income from Other Sources' at your applicable slab rate. Banks deduct TDS at 10% if your annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
What is a tax-saving FD?
A tax-saving FD has a lock-in period of 5 years and qualifies for a deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act. However, the interest earned on it is still taxable. Only the principal investment qualifies for the deduction.
Is my FD safe if the bank fails?
Deposits up to ₹5 lakh per depositor per bank are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI. This covers both principal and interest. If you have more than ₹5 lakh, consider spreading your deposits across multiple banks.