RD Calculator

Missing installments attracts penalty charges (usually ₹1-2 per ₹100 of installment). If you miss 4 consecutive installments, the RD account may be discontinued. It's important to maintain regular deposits for best returns.

Yes, premature withdrawal is allowed but banks charge penalty (typically 1% on interest rate). The interest is recalculated at a lower rate. Generally, RD should be broken only in emergencies as you lose significant interest.

Yes, RD interest is fully taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Unlike PPF, RD interest is not tax-free.

RD gives guaranteed fixed returns (6-7%) with zero risk, ideal for conservative investors. SIP in mutual funds can give higher returns (10-15%) but carries market risk. Choose RD for short-term goals and guaranteed returns, SIP for long-term wealth creation.

Formula: M = P × n × (n+1) × (2n+1) / (6 × 12) × (r/100), where M = Maturity amount, P = Monthly installment, n = Number of months, r = Interest rate. Simplified: For ₹5,000/month at 6.5% for 5 years (60 months), maturity ≈ ₹3,48,000.

Minimum: ₹10 in post office, ₹100-₹1000 in banks per month. No maximum limit. Tenure: Minimum 6 months, maximum 10 years in most banks. Post office offers minimum 5 years tenure. Senior citizens get extra 0.5% interest in most banks.

Yes, you can open multiple RD accounts with same or different banks. No limit on number of accounts. Useful for different goals: one for emergency fund (1-2 years), another for vacation (3 years), third for down payment (5 years). TDS applies if total interest across all banks exceeds ₹40,000/year.

Yes, most banks offer loans up to 80-90% of RD balance. Interest rate: Usually 1-2% above the RD interest rate. Your RD continues earning interest while you use the loan. Useful for emergency liquidity without breaking RD. Better than premature withdrawal which has penalty.

For same tenure and interest rate, FD gives slightly higher returns due to lumpsum compounding from day one. RD return is lower as deposits happen monthly. However, RD is better for salaried people who can't invest lumpsum. If you have ₹3 lakhs: FD is better. If you can save ₹5000/month: RD is better.

After maturity, you get principal + interest credited to your linked savings account automatically or via cheque. Some banks offer auto-renewal for same tenure if you don't withdraw. Post-maturity period: RD converts to savings account rate (3-4%) if not withdrawn - much lower than RD rate, so withdraw promptly.

No, RD amount is fixed at account opening and cannot be changed during tenure. To increase: Open a new RD with higher amount. To decrease: Not possible, but you can close existing RD (with penalty) and open new one with lower amount. Alternative: Open multiple RDs with different amounts for flexibility.

Post Office: Usually offers 0.25-0.5% higher interest, available even in small towns, minimum ₹10/month, 5-year tenure only. Banks: Multiple tenure options (6 months to 10 years), online facility, loan against RD easier, auto-debit from salary account. Choose post office for higher interest + small deposits, banks for convenience + flexible tenure.

No, RDs cannot be transferred between banks like FDs. If you want to switch banks, you must close existing RD (with premature withdrawal penalty) and open new RD in other bank. Check if new bank's higher interest rate justifies the penalty loss. Usually not worth it unless significant rate difference (>1%) or closing near maturity.

Longer tenure (5-10 years) gives higher total returns due to compounding, but check interest rate differences across tenures. Some banks offer higher rates for 3-5 year tenure compared to 1-2 years. Compare: ₹5000/month at 6.5% for 3 years = ₹1.98L, 5 years = ₹3.48L, 10 years = ₹8.28L. Choose based on your goal timeline, not just maximum returns.