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Recurring Deposit - 2026 Strategy Suite

Build your wealth systematically. Project your monthly saving milestones with our high-precision RD engine featuring quarterly compounding analysis.

Savings Plan

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* Note: Maturity values are estimated using quarterly compounding. Actual bank interest may vary slightly.

Standards: Financial Security Standards 2026

Updated: Jan 2026 | Build v2.1.0

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Awaiting Saving Strategy

Enter your monthly contribution in the left panel to map your systematic wealth growth.

Did You Know?

#1Recurring Deposits help you build a habit of disciplined saving with as little as ₹500 a month.

#2RD interest rates are typically the same as FD rates for the same tenure.

#3Most banks use quarterly compounding for RD interest calculations, maximizing your returns.

#4RDs are ideal for short-to-medium term goals like saving for a vacation or an electronics purchase.

#5Post Office RDs are highly popular in India due to their sovereign guarantee and competitive rates.

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RD Wealth Intelligence

What is a Recurring Deposit?

An RD allows you to invest a fixed amount every month for a specific tenure, earning a guaranteed interest rate. It's the perfect bridge for disciplined savers who want FD-like safety without the need for a large lump sum.

Maturity Formula

M = P * [(1+r/n)^nt - 1] / [1 - (1+r/n)^-1/n]

Monthly Saving Benefits

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    Disciplined Savings

    Auto-debit options help maintain investment consistency.

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    Lower Threshold

    Start with as little as ₹500 - ₹1000 per month.

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    Senior Citizen Plus

    Typically offers 0.5% higher yield for retirees.

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RD vs SIP: The Battle

Recurring Deposit (RD)

Guaranteed returns (6-8%). Best for short-term goals (1-3 years) like a vacation or down payment where safety is key.

SIP (Mutual Funds)

Market-linked returns (10-15%+). Best for long-term wealth (5+ years) where you can withstand short-term volatility.

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The Penalty of Inconsistency

Missed RD installments can be costly. Banks charge:

  • Standard Fine: ₹1.50 per ₹100 per month of delay.
  • Maturity Delay: The maturity date may be pushed forward by the number of days delayed.
  • Premature Closure: Breaking an RD usually incurs a 1% interest penalty on the actual tenure run.

Frequently Asked Questions

In most standard RD schemes, the installment amount is fixed at the time of opening. However, some banks offer 'Flexi-RD' schemes that allow you to vary the monthly contribution.
While the rates are often the same, FD interest is calculated on a lump sum from day one. In an RD, you deposit money monthly, so each installment earns interest for a different (decreasing) duration.
Banks typically charge a small penalty fee (e.g., ₹1-₹2 per ₹100) for missed payments. Frequent defaults can lead to the bank closing the RD account prematurely.
Yes, RD interest is fully taxable as per your income tax slab. TDS (Tax Deducted at Source) is applicable if the total interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens).

Standards Protocol

Fixed Income Security Benchmarks (v2.1)

Last Audit

January 2026 | Reviewed by Fixed Income Experts