RD Calculator India 2026-27: Returns, Rates & RD vs FD vs SIP
Best RD Interest Rates in India — 2026-27
RD interest is fully taxable at your income slab rate. TDS is deducted at 10% if total interest across all deposits at one bank exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G if you are below 60 and total income is under ₹3 lakhs, or Form 15H if you are a senior citizen with income below the taxable limit — to avoid TDS deduction.
Exact RD Maturity — ₹5,000/Month at Every Tenure
At 7% interest rate — Axis Bank / ICICI current rate. What ₹5,000/month actually becomes:
| Tenure | Total Invested | Interest Earned | Maturity Amount | Post-Tax (30% slab) |
|---|---|---|---|---|
| 1 Year | ₹60,000 | ₹2,275 | ₹62,275 | ₹61,593 |
| 2 Years | ₹1,20,000 | ₹9,145 | ₹1,29,145 | ₹1,26,401 |
| 3 Years | ₹1,80,000 | ₹20,974 | ₹2,00,974 | ₹1,94,682 |
| 5 Years | ₹3,00,000 | ₹59,220 | ₹3,59,220 | ₹3,41,454 |
| 7 Years | ₹4,20,000 | ₹1,20,480 | ₹5,40,480 | ₹5,04,336 |
| 10 Years | ₹6,00,000 | ₹2,57,890 | ₹8,57,890 | ₹7,80,523 |
At the 30% tax slab, ₹5,000/month RD for 10 years earns ₹2,57,890 in interest — but you keep only ₹1,80,523 after tax. The bank earns more from your money than you do in net interest after tax. This is why comparing RD post-tax returns with PPF and ELSS is essential before opening an RD account.
RD vs FD — Which Gives More Returns?
At the same interest rate, FD always gives higher total interest than RD — because in FD the full principal earns interest for the complete tenure, while in RD each monthly instalment earns interest only for its remaining period. The first deposit earns for the full tenure, the last deposit earns for just one month.
| Investment | Amount | Rate | Tenure | Maturity | Interest |
|---|---|---|---|---|---|
| FD (lump sum) | ₹3,00,000 | 7% | 5 years | ₹4,21,731 | ₹1,21,731 |
| RD (monthly) | ₹5,000/mo | 7% | 5 years | ₹3,59,220 | ₹59,220 |
| Difference | Same total invested | Same rate | Same tenure | FD wins by ₹62,511 | FD earns 2x more |
FD earns more than double the interest of RD on the same total investment. The reason: in FD your ₹3 lakhs works from day one. In RD your money comes in slowly over 5 years — the average deployment is roughly half the tenure. FD wins if you have a lump sum. RD wins if you're building savings month by month from salary.
Calculate your exact RD maturity
Enter your monthly deposit, bank rate and tenure — see maturity amount, interest earned and post-tax returns instantly.
Open RD Calculator →RD vs SIP — The Most Important Comparison for Salaried Indians
This is the real decision most Indians face — safe RD or equity SIP for monthly savings. Here's the honest comparison at ₹5,000/month:
| Option | ₹5K/mo · 5 Years | ₹5K/mo · 10 Years | ₹5K/mo · 15 Years | Risk |
|---|---|---|---|---|
| RD at 7% | ₹3.59L | ₹8.58L | ₹15.75L | Zero |
| PPF at 7.1% | ₹3.61L (tax-free) | ₹8.72L (tax-free) | ₹16.28L (tax-free) | Zero |
| SIP at 10% | ₹3.89L | ₹10.33L | ₹20.84L | Market risk |
| SIP at 12% | ₹4.12L | ₹11.62L | ₹25.23L | Higher risk |
Don't treat RD and SIP as either/or. Use RD for your emergency fund and goals under 3 years — fixed deposits with predictable returns. Use SIP for goals 5 years and beyond — the market risk becomes manageable and returns significantly outpace RD. For the middle ground (3–5 years), PPF beats RD post-tax at the same effort. RD has its place — just don't use it as your primary long-term wealth builder.
SBI RD Calculator 2026-27 — SBI Recurring Deposit Complete Guide
SBI (State Bank of India) is the most popular bank for recurring deposits in India due to its government backing, wide branch network and YONO app convenience. Here is everything you need to know about SBI RD in FY 2026-27.
General Public: 6.25% (1yr–<2yr) · 6.40% (2yr–<3yr) · 6.30% (3yr–<5yr) · 6.05% (5yr–10yr) — SBI now tiers RD rates by tenure rather than a single flat rate
Senior Citizens: 6.75% / 6.90% / 6.80% / 7.05% across the same tenure bands (the 5–10 year bracket carries an enhanced 7.05% via the SBI We Care scheme)
Compounding: Quarterly — interest compounded every 3 months
Minimum deposit: Rs 100 per month (no maximum limit)
Tenure: 1 year to 10 years in multiples of 3 months
Premature closure penalty: 0.5% reduction from applicable rate
SBI RD Maturity — Rs 5,000/Month at Current Tiered Rates
Exact maturity amounts for Rs 5,000/month SBI RD, using the rate that applies to each tenure bracket (quarterly compounding):
| Tenure | Rate | Total Invested | SBI Interest | SBI Maturity | Post-Tax (30%) |
|---|---|---|---|---|---|
| 1 Year | 6.25% | Rs 60,000 | Rs 2,060 | Rs 62,060 | Rs 61,417 |
| 2 Years | 6.40% | Rs 1,20,000 | Rs 8,291 | Rs 1,28,291 | Rs 1,25,704 |
| 3 Years | 6.30% | Rs 1,80,000 | Rs 18,500 | Rs 1,98,500 | Rs 1,92,728 |
| 5 Years | 6.05% | Rs 3,00,000 | Rs 50,778 | Rs 3,50,778 | Rs 3,34,935 |
| 7 Years | 6.05% | Rs 4,20,000 | Rs 1,03,361 | Rs 5,23,361 | Rs 4,91,112 |
| 10 Years | 6.05% | Rs 6,00,000 | Rs 2,24,391 | Rs 8,24,391 | Rs 7,54,381 |
SBI RD vs Other Banks
| Bank | Rate (General) | Rate (Senior) | Rs 5K x 5 Yrs | Min Deposit |
|---|---|---|---|---|
| SBI | 6.05% (5yr) | 7.05% (5yr) | Rs 3,50,778 | Rs 100/mo |
| Post Office | 6.7% | 6.7% | Rs 3,56,821 | Rs 100/mo |
| HDFC Bank | 6.8% | 7.3% | Rs 3,57,810 | Rs 1,000/mo |
| ICICI Bank | 7.0% | 7.5% | Rs 3,59,798 | Rs 500/mo |
| Axis Bank | 7.2% | 7.75% | Rs 3,61,796 | Rs 500/mo |
| Kotak Bank | 7.4% | 7.9% | Rs 3,63,813 | Rs 500/mo |
How to Open SBI RD Online via YONO App
- Open YONO SBI app or SBI NetBanking and go to Deposits then Recurring Deposit
- Select tenure (1-10 years) and monthly amount (minimum Rs 100)
- Choose savings account for auto-debit and set auto-debit date
- Confirm — account opens instantly, passbook available digitally
- Submit Form 15G or 15H if total RD interest is under Rs 40,000 to avoid TDS
Post Office RD vs Bank RD — Which is Safer?
Post Office RD is backed by the Government of India — zero credit risk, no DICGC limit concerns. Bank RDs are protected by DICGC insurance up to ₹5 lakhs per depositor per bank. For amounts under ₹5 lakhs, the higher bank rate (Kotak at 7.4% vs Post Office at 6.7%) usually wins. For larger amounts or maximum safety, Post Office RD is the clear choice.
RD Interest Rates Across All Major Banks — August 2026
RD interest rates vary significantly across banks and even across tenure brackets within the same bank. Here's a comprehensive comparison for a general (non-senior) depositor:
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Senior Citizen Bonus |
|---|---|---|---|---|---|
| SBI | 6.25% | 6.40% | 6.30% | 6.05% | +0.50–0.75% |
| HDFC Bank | 6.60% | 7.00% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.00% | 7.00% | 7.00% | +0.50% |
| Axis Bank | 6.70% | 7.10% | 7.10% | 7.00% | +0.75% |
| Kotak Mahindra | 7.10% | 7.10% | 7.00% | 6.20% | +0.50% |
| Post Office RD | 6.70% | 6.70% | 6.70% | 6.70% | No bonus |
| Bank of Baroda | 6.85% | 7.05% | 6.80% | 6.50% | +0.50% |
| Punjab National Bank | 6.80% | 6.80% | 6.50% | 6.50% | +0.50% |
Key insight: Private banks (Axis, Kotak, HDFC, ICICI) generally offer 0.2–0.6% higher rates than PSU banks for 1–3 year tenures. Senior citizens should always choose Axis Bank's 0.75% bonus (vs 0.50% at most others). Post Office RD offers sovereign guarantee but lower rates — best suited for maximum safety, not maximum returns. Use the RD calculator to compute exact maturity for any bank's rate.
RD Taxation in India — TDS, Form 15G/15H, and ITR Filing
RD interest is fully taxable as "Income from Other Sources" — a fact many depositors overlook. Understanding the tax rules can save you thousands in unnecessary TDS deductions.
| Rule | Details |
|---|---|
| TDS threshold | Bank deducts TDS if total interest across ALL your accounts at that bank exceeds ₹40,000/year (₹50,000 for senior citizens) |
| TDS rate | 10% if PAN is provided; 20% if PAN is not linked |
| Form 15G | Submit at start of financial year if your total income is below ₹2.5 lakh — prevents bank from deducting TDS |
| Form 15H | Senior citizen version of 15G — submit if total income is below ₹3 lakh (the senior basic exemption limit) |
| ITR reporting | Declare ALL RD interest in ITR even if no TDS was deducted. Report in "Schedule OS" under "Interest from deposits" |
| Accrual vs receipt | Interest is taxable on accrual basis each year — not just when the RD matures. Report proportionate interest every financial year |
Common mistake: Many depositors report RD interest only in the year of maturity. The correct treatment is to report the interest accrued each financial year. If your bank doesn't deduct TDS and you don't report annually, you could face interest and penalty under Section 234B/234C for under-payment of advance tax. Check your Form 26AS or AIS in the income tax portal — all TDS deducted by banks appears there automatically.
If your total income is below the basic exemption limit, submit Form 15G (or 15H if senior citizen) to your bank every April 1st. This prevents 10% TDS deduction on RD interest. Banks accept these forms online via net banking — no branch visit needed. Missing the April submission means TDS gets deducted for the quarters already elapsed.
RD Strategy by Financial Goal — Which Tenure to Choose
The right RD tenure depends entirely on your goal and when you need the money. Here's a practical framework:
| Goal | Timeline | Recommended Tenure | Monthly Amount Example | Expected Maturity |
|---|---|---|---|---|
| Emergency fund top-up | 6–12 months | 6–12 month RD | ₹5,000/mo | ~₹31,400 (6M at 6.8%) |
| Annual vacation fund | 12 months | 12-month RD | ₹8,000/mo | ~₹99,800 |
| Two-wheeler purchase | 18–24 months | 24-month RD | ₹6,000/mo | ~₹1,53,800 |
| Home down payment portion | 3 years | 36-month RD | ₹15,000/mo | ~₹5,87,000 |
| Child's school fee corpus | 5 years | 60-month RD | ₹10,000/mo | ~₹7,14,000 |
RD laddering strategy: Instead of one large RD, open multiple smaller RDs maturing at different intervals. For example, three ₹3,000/month RDs maturing at 12, 24, and 36 months. This gives you liquidity at regular intervals without breaking a single large RD prematurely (which costs a 0.5–1% penalty on interest). It also lets you reinvest each maturing RD at the prevailing rate — benefiting if rates rise over time.
For goals beyond 5 years, consider whether SIP in mutual funds might outperform RD — historically by 3–5% annually. RD is the right choice when capital protection is non-negotiable and you cannot afford any loss. For long-term wealth building with tolerance for short-term fluctuations, SIP typically wins.
Premature RD Withdrawal — Penalties and How to Avoid Them
Closing an RD before maturity costs you — but the penalty varies by bank and is often misunderstood.
| Bank | Premature Penalty | Interest Paid On |
|---|---|---|
| SBI | 0.50% below contracted rate | Rate for actual period held |
| HDFC Bank | 1.00% below contracted rate | Rate for actual period held |
| ICICI Bank | 1.00% below contracted rate | Rate for actual period held |
| Post Office RD | No premature closure before 3 years | After 3 years: PO savings rate (4%) |
| Most private banks | 0.50–1.00% below contracted rate | Rate for actual period held |
Alternative to breaking an RD: Most banks offer a loan against your RD — typically up to 90% of the deposited amount at 1–2% above the RD rate. This is significantly cheaper than breaking the RD and losing the interest penalty. If you need temporary liquidity, take the OD (overdraft) against RD rather than prematurely closing it. The loan interest for a few weeks often costs less than the penalty on months of accumulated interest.