₹10,000 RD for 1 Years
A ₹10,000 monthly recurring deposit for 1 years at 7% compounded quarterly matures at ₹1.2 lakh, of which ₹4,621 is interest earned over the tenure. RD works best for salaried savers who want disciplined monthly savings with sovereign-level safety — though returns lag behind equity SIPs over long horizons.
Rate Comparison for ₹10,000 / 1 Years
| Rate | Invested | Interest | Maturity |
|---|---|---|---|
| 6% | ₹1,20,000 | ₹3,952 | ₹1,23,952 |
| 6.5% | ₹1,20,000 | ₹4,286 | ₹1,24,286 |
| 7% | ₹1,20,000 | ₹4,621 | ₹1,24,621 |
| 7.5% | ₹1,20,000 | ₹4,957 | ₹1,24,957 |
About This Scenario
A ₹10,000 monthly recurring deposit for 1 years at 7% compounded quarterly matures at ₹1.2 lakh, of which ₹4,621 is interest earned over the tenure. RD works best for salaried savers who want disciplined monthly savings with sovereign-level safety — though returns lag behind equity SIPs over long horizons.
Frequently Asked Questions
What is the maturity of ₹10,000 monthly RD for 1 years?
At 7% quarterly-compounded, a ₹10,000 monthly RD for 1 years matures at ₹1.2 lakh. Of this, ₹4,621 is interest earned.
Is RD interest taxable?
Yes. Treated exactly like FD interest — taxable under 'Income from Other Sources' at your slab rate. TDS applies if annual interest from the bank exceeds ₹40,000 (₹50,000 for senior citizens).
RD vs SIP — which is better?
RD gives guaranteed but lower returns (6–7.5%) with sovereign-level safety. SIP in equity mutual funds targets 11–14% historically with market risk. For 5+ year horizons, SIP typically creates 2–3x more wealth.
Can I skip an RD instalment?
Most banks allow 2–4 missed instalments without penalty, but later missed instalments can lead to account closure. Set up auto-debit to avoid the issue.