₹5,000 RD for 5 Years
A ₹5,000 monthly recurring deposit for 5 years at 7% compounded quarterly matures at ₹3.6 lakh, of which ₹59,664 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 ₹5,000 / 5 Years
| Rate | Invested | Interest | Maturity |
|---|---|---|---|
| 6% | ₹3,00,000 | ₹50,318 | ₹3,50,318 |
| 6.5% | ₹3,00,000 | ₹54,954 | ₹3,54,954 |
| 7% | ₹3,00,000 | ₹59,664 | ₹3,59,664 |
| 7.5% | ₹3,00,000 | ₹64,449 | ₹3,64,449 |
About This Scenario
A ₹5,000 monthly recurring deposit for 5 years at 7% compounded quarterly matures at ₹3.6 lakh, of which ₹59,664 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 ₹5,000 monthly RD for 5 years?
At 7% quarterly-compounded, a ₹5,000 monthly RD for 5 years matures at ₹3.6 lakh. Of this, ₹59,664 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.