₹1,000 RD for 3 Years
A ₹1,000 monthly recurring deposit for 3 years at 7% compounded quarterly matures at ₹40,137, of which ₹4,137 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 ₹1,000 / 3 Years
| Rate | Invested | Interest | Maturity |
|---|---|---|---|
| 6% | ₹36,000 | ₹3,514 | ₹39,514 |
| 6.5% | ₹36,000 | ₹3,824 | ₹39,824 |
| 7% | ₹36,000 | ₹4,137 | ₹40,137 |
| 7.5% | ₹36,000 | ₹4,453 | ₹40,453 |
About This Scenario
A ₹1,000 monthly recurring deposit for 3 years at 7% compounded quarterly matures at ₹40,137, of which ₹4,137 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 ₹1,000 monthly RD for 3 years?
At 7% quarterly-compounded, a ₹1,000 monthly RD for 3 years matures at ₹40,137. Of this, ₹4,137 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.