Yes, at your slab rate, and banks deduct TDS when total deposit interest exceeds the threshold. Post Office RD has no TDS but the interest is still taxable.
RD Calculator
Calculate a recurring deposit's maturity value from monthly instalments with quarterly compounding — the standard bank RD formula — and see how it compares with a mutual fund SIP at the same monthly outgo.
Maturity amount
₹3,56,829
Total deposited
₹3,00,000
Interest earned
₹56,829
SIP at 12% would give
₹4,12,432
RD vs SIP, year by year
| Year | Deposited | RD value | SIP @ 12% |
|---|---|---|---|
| 1 | ₹60,000 | ₹62,210 | ₹64,047 |
| 2 | ₹1,20,000 | ₹1,28,694 | ₹1,36,216 |
| 3 | ₹1,80,000 | ₹1,99,746 | ₹2,17,538 |
| 4 | ₹2,40,000 | ₹2,75,679 | ₹3,09,174 |
| 5 | ₹3,00,000 | ₹3,56,829 | ₹4,12,432 |
- Bank RDs compound quarterly; each instalment earns for the months it stays deposited. Interest is taxable at slab; TDS applies above the annual threshold.
How the RD Calculator works
A recurring deposit takes a fixed sum every month for a fixed term at a fixed rate. Banks compound quarterly, so an instalment deposited in month 1 earns for the whole term while the last one earns for a month.
The SIP comparison is the same monthly amount in an equity fund at your chosen return — higher expected value, but not guaranteed.
M = Σ A × (1 + r/4)^( (N − m + 1) / 3 ) for m = 1 … N
- A
- monthly instalment
- r
- annual rate
- N
- months
Worked example
- Monthly deposit: ₹5,000
- Interest rate (p.a.): 6.7%
- Tenure: 5 Yr
₹5,000 a month for 5 years at 6.7% deposits ₹3 lakh and matures at about ₹3,56,829. The same money in a 12% SIP would be near ₹4,12,432.