A recurring deposit (RD) is the simplest way to turn a monthly salary into a lump sum. You deposit a fixed amount every month, the bank pays interest compounded every quarter, and at the end of the tenure you get your deposits plus interest together.
This RD calculator works for SBI, HDFC Bank, ICICI Bank, Axis Bank and the Post Office: select your bank, enter the monthly amount and tenure, and see the exact maturity value, interest earned and maturity date in one click.
RD Calculator
SBI rates as of October 2026 are filled automatically for your tenure. You can also type any rate yourself.
Maturity Value:
How Your Money Grows, Year by Year
| Year | Total Deposited | Value at Year End |
|---|
Interest is compounded quarterly, the method Indian banks and the Post Office use for RD. Final figures of your bank may differ by a few rupees due to the exact date of the first deposit.
How RD Interest Is Calculated
Banks do not calculate RD interest month by month on the full amount. Every instalment earns interest only for the time it stays with the bank, and the interest is compounded every quarter (every 3 months). This is the standard formula used by Indian banks:
P = monthly deposit, i = yearly interest rate ÷ 400, n = number of quarters in the tenure.
Example: ₹5,000 a month for 5 years in a Post Office RD at 6.7%. Total deposited is ₹3,00,000 and the maturity value comes to ₹3,56,829, so the interest earned is ₹56,829. The calculator above uses this same formula, which is why its result matches the figure India Post itself shows for this deposit.
RD Interest Rates 2026: SBI, HDFC, ICICI, Axis and Post Office
Rates below are for general customers, as of October 2026. Senior citizens get 0.50% extra in all four banks; the Post Office pays the same rate to everyone. Banks revise RD rates from time to time, so confirm the rate on the day you open the account.
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Senior Citizen |
|---|---|---|---|---|---|
| SBI | 6.25% | 6.45% | 6.30% | 6.05% | +0.50% |
| HDFC Bank | 6.25% | 6.45% | 6.45% | 6.40% | +0.50% |
| ICICI Bank | 6.25% | 6.30% | 6.55% | 6.60% | +0.50% |
| Axis Bank | 6.25% | 6.50% | 6.50% | 6.50% | +0.50% |
| Post Office | 6.70% fixed, only for 5 years (60 months) | Same rate | |||
SBI RD Calculator
The State Bank of India RD can start with just ₹100 a month, for any tenure from 1 year to 10 years. SBI RD rates follow the bank’s deposit rate card: 6.25% for 1 to 2 years, 6.45% for 2 to 3 years, 6.30% for 3 to 5 years and 6.05% for 5 to 10 years, with 0.50% extra for senior citizens.
Example: ₹5,000 a month for 5 years at 6.05% grows to ₹3,50,778. You deposit ₹3,00,000 and earn ₹50,778 as interest. Select SBI in the calculator above and change the amount or tenure to see your own figure.
HDFC Bank RD Calculator
HDFC Bank RD rates in October 2026 are 6.25% for 1 year, 6.45% for 2 to 3 years and 6.40% for 5 years, with 0.50% extra for senior citizens. The minimum monthly deposit is ₹1,000 and the tenure can run up to 10 years.
Example: ₹10,000 a month for 3 years at 6.45% grows to ₹3,97,932. You deposit ₹3,60,000 and earn ₹37,932 as interest.
ICICI Bank RD Calculator
ICICI Bank offers 6.25% for 1 year, 6.30% for 2 years, 6.55% for 3 years and 6.60% for 5 years, the highest 5 year rate among the four banks on this page. Senior citizens get 0.50% extra, and the RD can start from ₹500 a month.
Example: ₹3,000 a month for 5 years at 6.60% grows to ₹2,13,534. You deposit ₹1,80,000 and earn ₹33,534 as interest.
Axis Bank RD Calculator
Axis Bank RD rates stay almost flat across tenures: 6.25% for 1 year and 6.50% for 2, 3 and 5 years, with 0.50% extra for senior citizens. The minimum monthly deposit is ₹500.
Example: ₹2,000 a month for 2 years at 6.50% grows to ₹51,370. You deposit ₹48,000 and earn ₹3,370 as interest.
Post Office RD Calculator
The Post Office RD is different from bank RDs in three ways: the tenure is fixed at 5 years (60 monthly deposits), the rate is set by the government every quarter, and the same rate is paid to everyone including senior citizens. For October to December 2026 the rate is 6.7% per year, compounded quarterly, and the rate you open the account at stays fixed for the full 5 years. The account starts with just ₹100 a month and can be extended for 5 more years after maturity.
Example: ₹5,000 a month for 5 years at 6.7% grows to ₹3,56,829, which is ₹6,051 more than the same deposit in an SBI RD at 6.05%. This is why the Post Office RD is the better choice for a plain 5 year goal, while a bank RD is better when you need a shorter or longer tenure.
RD vs FD: Which One Suits You?
The difference is only in how the money goes in. In an FD you deposit one lump sum on day one; in an RD you build the same lump sum month by month. Interest rates are similar in both, and both compound quarterly. If you already have a lump sum, use our FD Calculator to check its maturity value. If you save from a monthly salary or income, the RD on this page is the right tool.
What Your Monthly Saving Becomes in 5 Years
Most people think in monthly amounts, not in rates. This table shows what a fixed monthly deposit becomes after 5 years in a Post Office RD at 6.7% and in an SBI RD at 6.05%, so you can pick your amount by the target, not by guesswork.
| Monthly Deposit | Total Deposited (5 Years) | Post Office RD at 6.7% | SBI RD at 6.05% |
|---|---|---|---|
| ₹1,000 | ₹60,000 | ₹71,366 | ₹70,156 |
| ₹2,000 | ₹1,20,000 | ₹1,42,732 | ₹1,40,311 |
| ₹3,000 | ₹1,80,000 | ₹2,14,097 | ₹2,10,467 |
| ₹5,000 | ₹3,00,000 | ₹3,56,829 | ₹3,50,778 |
| ₹10,000 | ₹6,00,000 | ₹7,13,658 | ₹7,01,556 |
Who Should Open an RD?
An RD suits anyone whose goal is fixed and whose income comes monthly: a salaried person building an emergency fund, parents saving for school fees or a wedding on a known date, or a first-time saver who wants bank-level safety without watching the market. The deposit is guaranteed by the bank, deposits up to ₹5 lakh per bank are insured by DICGC, and the auto-debit habit does the discipline for you. If your goal amount and date are both fixed, an RD is usually a better fit than leaving the same money idle in a savings account at 2.5% to 3%.
Tax and Premature Closure of RD
RD interest is fully taxable at your income tax slab rate. Banks deduct TDS at 10% when the RD interest in a financial year crosses ₹40,000 (₹50,000 for senior citizens). An RD can be closed before maturity: banks generally pay interest for the period completed at a lower applicable rate, and a small penalty may apply. The Post Office allows premature closure only after 3 years, and then pays interest at the savings account rate (4%), which is much lower than the RD rate, so break a Post Office RD only in a real emergency.
Frequently Asked Questions
How is RD interest calculated?
RD interest is compounded quarterly. The formula is: Maturity Value = P × [(1 + i)ⁿ − 1] ÷ [1 − (1 + i)^(−1/3)], where P is the monthly deposit, i is the yearly rate divided by 400, and n is the number of quarters. Every instalment earns interest only for the months it stays deposited, which is why the first instalment earns the most.
What is the Post Office RD interest rate in 2026?
The Post Office RD pays 6.7% per year for October to December 2026, compounded quarterly. The tenure is fixed at 5 years, the minimum deposit is ₹100 a month, and everyone gets the same rate, including senior citizens. The rate running on the day you open the account applies for the full 5 years.
Which bank gives the highest RD interest rate?
For a straight 5 year RD, the Post Office pays the highest rate on this page at 6.7%. Among banks, ICICI Bank pays 6.60% for 5 years, followed by Axis Bank at 6.50% and HDFC Bank at 6.40%. Senior citizens earn 0.50% extra in banks, which takes the ICICI senior citizen rate to 7.10%.
What is the minimum monthly amount for an RD?
It depends on the bank. SBI and the Post Office start at ₹100 a month, ICICI Bank and Axis Bank at ₹500 a month, and HDFC Bank at ₹1,000 a month. There is no maximum limit.
Is RD interest taxable?
Yes. RD interest is added to your income and taxed at your slab rate. The bank deducts TDS at 10% if the RD interest in a financial year is more than ₹40,000, or ₹50,000 for senior citizens.
Can I close my RD before maturity?
Yes, a bank RD can be closed early, but you get interest only for the completed period at a lower rate and a small penalty may apply. A Post Office RD can be closed early only after 3 years, and then interest is paid at the 4% savings account rate, so it is better not to break it unless necessary.
RD or FD, which is better?
Both pay similar interest. Choose RD when you want to save a fixed amount every month from your salary; choose FD when you already have a lump sum to deposit at once. You can check lump sum returns on our FD Calculator page.