RD vs SIP — which is better?

RDs are safer (guaranteed return, DICGC-insured to ₹5L) but give 6–8% vs SIPs in equity funds which have historically done 11–13% over long periods. For short-term goals (1–3 years) RDs are better; for 5+ years, SIPs usually win.

Is RD interest taxable?

Yes — fully taxable at your slab rate. Banks deduct TDS at 10% if total RD + FD interest exceeds ₹40,000/year (₹50,000 for seniors). No Section 80C benefit.

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RD Calculator — Recurring Deposit maturity value

Calculate your bank recurring deposit maturity amount. Monthly deposit with quarterly compounding interest.

Inputs

Monthly deposit₹5,000

₹100₹2.00 L

Interest rate (p.a.)7.1%

112

Tenure (months)60 mo

6120

Result

Maturity value

₹3.61 L

Total deposited

₹3.00 L

Interest earned

₹60,615

Composition

Invested

Returns

Year-by-year growth

About the RD Calculator

Recurring Deposits are a disciplined savings tool — you commit to a fixed monthly deposit for a fixed tenure at a fixed rate.

Interest compounds quarterly in most Indian banks. Miss a monthly deposit and most banks charge a small penalty (~₹1.50–₹2 per ₹100 missed).

Rates vary: 6.5–7.5% at PSU banks, up to 8.5% at small finance banks. Senior citizens get an extra 0.25–0.50%.

RD — Frequently asked questions

An RD lets you deposit a fixed amount every month for a chosen tenure (usually 6 months to 10 years). Interest compounds quarterly. Good for disciplined savings without market risk.

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