₹15,000 RD for 7 Years
A ₹15,000 monthly recurring deposit for 7 years at 7% compounded quarterly matures at ₹16.3 lakh, of which ₹3.7 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.
Rate Comparison for ₹15,000 / 7 Years
| Rate | Invested | Interest | Maturity |
|---|---|---|---|
| 6% | ₹12,60,000 | ₹3,07,158 | ₹15,67,158 |
| 6.5% | ₹12,60,000 | ₹3,36,705 | ₹15,96,705 |
| 7% | ₹12,60,000 | ₹3,66,931 | ₹16,26,931 |
| 7.5% | ₹12,60,000 | ₹3,97,852 | ₹16,57,852 |
About This Scenario
A ₹15,000 monthly recurring deposit for 7 years at 7% compounded quarterly matures at ₹16.3 lakh, of which ₹3.7 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 7 years?
At 7% quarterly-compounded, a ₹15,000 monthly RD for 7 years matures at ₹16.3 lakh. Of this, ₹3.7 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.