Total Interest Earned: ₹0

Deposited Amount: ₹0

Total Maturity Amount: ₹0

Compare RD vs SIP

Parameter	Recurring Deposit (RD)
Risk	Low (Safe & Fixed Returns)
Interest Rate	6% to 8% (fixed by banks)
Lock-in Period	Generally 6 months to 10 years
Returns	Fixed and predictable
Taxation	TDS on interest if > ₹10,000/year
Liquidity	Premature withdrawal possible with penalty

Parameter	Systematic Investment Plan (SIP)
Risk	Moderate to High (Market Linked)
Expected Returns	10% to 15% (historical average)
Lock-in Period	Varies (ELSS: 3 years; others: optional)
Returns	Market dependent, potentially higher
Taxation	Long Term Capital Gains (LTCG) applicable
Liquidity	Can withdraw anytime unless ELSS

💡 Quick Tips: RD vs SIP – Which One Suits You?

If you’re risk-averse and prefer guaranteed returns – go for RD.
If you're investing for long term (5+ years), and can handle some market risk – choose SIP.
Need to save for short-term goals like a vacation or gadget? – Consider RD.
Want to build wealth over 10+ years? – SIPs in equity mutual funds often outperform.

Benefits of RD Calculator

Convenience: Users can easily calculate the maturity amount they will earn based on deposit amount, tenure, and interest rates, facilitating efficient financial planning and goal setting.
Time-Saving: The calculator eliminates the need to remember complex formulas and perform intricate calculations, saving users valuable time.
Financial Planning: It aids in planning savings effectively and provides insights into the returns on investments, enabling informed financial decisions.
Comparison: Investors can compare various RDs' interest rates and choose the most beneficial plan.
Free to Use: The calculator is available online at no cost and can be utilised multiple times for comparison and analysis.

Tax Benefits on RD

Similar to other personal tax-saving and investment instruments, Recurring Deposit schemes also attract taxes. A TDS of 10% is deducted on the returns accrued from an RD if the total interest exceeds ₹10,000 in a single financial year.

Compare this to the SIP scheme and you can see that SIPs are more beneficial for the long term. Since long-term gains from equity are tax-free, any SIP which invests in ELSS (Equity Linked Mutual Funds) is also tax-free after one year.

The Filebob RD Calculator simplifies financial planning by providing accurate and instant calculations, helping investors make informed decisions about their savings. While RDs offer a secure and disciplined way to save, comparing them with other investment options like SIPs can help investors choose the most suitable plan based on their financial goals.

How is RD Interest Calculated?

Interest on RD is compounded quarterly. The formula for calculating the maturity value is:

If you invest ₹5,000 per month for one year at an interest rate of 8%, your maturity value would be:

Recurring Deposit (RD) Calculator

Calculate Your RD Maturity Amount

Compare RD vs SIP

💡 Quick Tips: RD vs SIP – Which One Suits You?

Benefits of RD Calculator

Tax Benefits on RD

How is RD Interest Calculated?

Frequently Asked Questions (FAQs)