₹10,000 RD for 3 Years
A ₹10,000 monthly recurring deposit for 3 years at 7% compounded quarterly matures at ₹4.0 lakh, of which ₹41,373 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 / 3 Years
| Rate | Invested | Interest | Maturity |
|---|---|---|---|
| 6% | ₹3,60,000 | ₹35,142 | ₹3,95,142 |
| 6.5% | ₹3,60,000 | ₹38,244 | ₹3,98,244 |
| 7% | ₹3,60,000 | ₹41,373 | ₹4,01,373 |
| 7.5% | ₹3,60,000 | ₹44,530 | ₹4,04,530 |
About This Scenario
A ₹10,000 monthly recurring deposit for 3 years at 7% compounded quarterly matures at ₹4.0 lakh, of which ₹41,373 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 3 years?
At 7% quarterly-compounded, a ₹10,000 monthly RD for 3 years matures at ₹4.0 lakh. Of this, ₹41,373 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.