What is the difference between FD and RD?

A Fixed Deposit (FD) requires a one-time lump-sum investment locked for a fixed period. A Recurring Deposit (RD) allows you to deposit a fixed amount every month for a chosen tenure.

How is interest compounded on bank FDs in India?

For tenures of 6 months or longer, Indian commercial banks compound interest on a quarterly basis. For tenures below 6 months, simple interest is applied.

What is the senior citizen interest benefit?

Senior citizens (aged 60 and above) typically receive an extra 0.50% (and up to 0.75% for super seniors) interest rate above standard card rates.

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FD & RD Calculator

Compute guaranteed bank maturity amounts for Fixed & Recurring Deposits.

Total Deposit Amount (₹):

₹

₹10,000 ₹5,00,000 ₹10,00,000 ₹20,00,000+

Annual Interest Rate (% p.a):

Deposit Tenure:

Years

Senior Citizen (+0.50%) Applicable for age 60+ in Indian banks

Compounding: Quarterly (Bank Standard)

Maturity Summary

Maturity Payout Amount

₹ 1,42,160

Over 5 Years @ 7.1% p.a.

Total Deposited

₹ 1,00,000

70.3%

Interest Earned

₹ 42,160

29.7%

Interest Share 30%

Deposited Interest

Related Financial Tools

How Bank Deposit Interest Works

Fixed Deposit (FD) Formula

Quarterly compounding formula used by banks:

A = P × [ 1 + (r / 400) ]^(4 × t)

Where P is Principal, r is Annual Interest %, and t is tenure in years.

Recurring Deposit (RD) Formula

Every monthly deposit earns compound interest for the remaining tenure:

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

Each month's installment compounds quarterly until maturity.

Frequently Asked Questions (FAQs)

Is interest on FD and RD taxable?

Yes, interest earned on Fixed and Recurring Deposits is added to your total income under 'Income from Other Sources' and taxed according to your applicable income tax slab. Banks deduct TDS (10%) if interest exceeds ₹40,000 per year (₹50,000 for senior citizens).

Can I break my FD or RD before maturity?

Yes, premature withdrawals are permitted by most banks, but they generally attract a penalty of 0.50% to 1.0% deduction on the effective interest rate for the period the deposit was held.