LIC RD Calculator
Calculate standard recurring deposit interest growth schedules. Plan monthly allocations, estimate total quarterly compound yield, and track sitemap progression.
| Year | Total Invested | Total Interest | Balance |
|---|---|---|---|
| Year 1 | ₹60,000 | ₹2,244 | ₹62,244 |
| Year 2 | ₹1,20,000 | ₹8,829 | ₹1,28,829 |
| Year 3 | ₹1,80,000 | ₹20,059 | ₹2,00,059 |
| Year 4 | ₹2,40,000 | ₹36,257 | ₹2,76,257 |
| Year 5 | ₹3,00,000 | ₹57,771 | ₹3,57,771 |
₹3,57,771
Compound quarterly returns schedule.
• RD calculations assume investments are made on the first day of every month.
• Quarterly compounding is applied as per RBI regulations for Indian banks and post offices.
RD Interest Mechanics
Recurring Deposits compound interest quarterly in Indian post offices and banks. Every monthly payment compounds over its specific holding duration using standard formulas:
- Maturity Formula: M = P * ((1 + i)^n - 1) / (1 - (1 + i)^(-1/3))
- Compound Intervals: Interest compounds 4 times a year, yielding higher effective returns than simple interest.
Taxability of RD Earnings
Interest accrued on Recurring Deposits is subject to Tax Deducted at Source (TDS) under Section 194A of the Income Tax Act if annual earnings exceed ₹40,000 (₹50,000 for senior citizens).
Frequently Asked Questions (FAQ)
What compounding frequency does the RD calculator use?
The calculator defaults to quarterly compounding, which is the standard regulatory practice followed by commercial banks and India Post for RD products.
Is there any tax benefit under Section 80C for RD accounts?
Regular bank and post office RD schemes do not offer Section 80C deductions. However, 5-year Post Office RDs and Tax-Saver FDs qualify for tax shields.
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