₹15,000 RD for 5 Years

A ₹15,000 monthly recurring deposit for 5 years at 7% compounded quarterly matures at ₹10.8 lakh, of which ₹1.8 lakh 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.

Total Deposited
₹9,00,000
Interest Earned
₹1,78,992
Maturity Value
₹10,78,992

Rate Comparison for ₹15,000 / 5 Years

RateInvestedInterestMaturity
6%₹9,00,000₹1,50,953₹10,50,953
6.5%₹9,00,000₹1,64,862₹10,64,862
7%₹9,00,000₹1,78,992₹10,78,992
7.5%₹9,00,000₹1,93,346₹10,93,346

About This Scenario

A ₹15,000 monthly recurring deposit for 5 years at 7% compounded quarterly matures at ₹10.8 lakh, of which ₹1.8 lakh 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 ₹15,000 monthly RD for 5 years?

At 7% quarterly-compounded, a ₹15,000 monthly RD for 5 years matures at ₹10.8 lakh. Of this, ₹1.8 lakh 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.