₹1,000 Per Month RD Calculator — 5 Year Maturity
Calculate 5-year maturity for ₹1,000 monthly RD at 6.5% — ₹71,057. Compare bank vs post-office RD rates.
Running a ₹1,000 monthly RD is mechanically similar to an SIP, but the return is fixed (not market-linked) and the interest is taxed at your slab rate — so post-tax returns typically trail an equity SIP over 5+ year horizons, even after accounting for market volatility. At 6.5% per annum with quarterly compounding, a ₹1,000 monthly RD held for 5 years matures to approximately ₹71,057 against total deposits of ₹60,000 — an interest earning of ₹11,057. Unlike FDs, RD interest does not have a separate TDS threshold — banks deduct TDS if the total interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), and missed instalments typically attract a small late-payment penalty. Post-office RDs pay a slightly different rate than bank RDs and are government-backed, making them attractive for risk-averse savers even when bank rates are marginally higher. The calculator is pre-filled at ₹1,000 per month, 6.5%, 5 years — edit to match your actual tenure.
What is the maturity value of a ₹1,000 per month RD for 5 years?
At 6.5% with quarterly compounding, a ₹1,000 monthly RD for 5 years matures to about ₹71,057 on total deposits of ₹60,000 — an interest component of ₹11,057.
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RD Maturity at Different Rates and Tenures
RD maturity at different rates and tenures for a ₹1,000 monthly deposit
| Rate ↓ / Tenure → | 1 yrs | 3 yrs | 5 yrs | 7 yrs | 10 yrs |
|---|---|---|---|---|---|
| 5.5% | ₹12,364 | ₹39,222 | ₹69,197 | ₹1,02,648 | ₹1,60,239 |
| 6% | ₹12,397 | ₹39,533 | ₹70,119 | ₹1,04,594 | ₹1,64,699 |
| 6.5% | ₹12,431 | ₹39,846 | ₹71,057 | ₹1,06,588 | ₹1,69,315 |
| 7% | ₹12,465 | ₹40,163 | ₹72,011 | ₹1,08,629 | ₹1,74,094 |
| 7.5% | ₹12,499 | ₹40,483 | ₹72,980 | ₹1,10,720 | ₹1,79,042 |
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| Monthly RD | ₹1,000 |
| Interest Rate | 6.5% p.a. (qtrly) |
| Total Deposits (5 yrs) | ₹60,000 |
| Maturity (5 yrs) | ₹71,057 |
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Use Calculator NowFrequently Asked Questions
What is the maturity value of a ₹1,000 per month RD for 5 years?
At 6.5% with quarterly compounding, a ₹1,000 monthly RD for 5 years matures to about ₹71,057 on total deposits of ₹60,000 — an interest component of ₹11,057.
Is a ₹1,000 per month RD better than SIP?
RD returns are fixed (6.5% currently) — no market risk but lower expected outcome. A ₹1,000 monthly SIP at 12% over 5 years would grow to ₹82,486 versus ₹71,057 for the RD. SIP wins on expected return but RDs win on certainty — use RDs for short-term, known goals.
Is ₹1,000 per month RD interest taxable?
Yes. RD interest is taxable at your slab rate and banks deduct TDS at 10% if total interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). For a ₹1,000 monthly RD, total interest is roughly ₹11,057 over 5 years — submit Form 15G/15H if your total taxable income is below the basic exemption limit.
What if I miss an RD instalment on my ₹1,000 RD?
Most banks charge a small late-payment penalty (₹1–₹5 per ₹100 of the missed instalment). Missing more than 4 consecutive instalments can close the RD and convert it to a savings account. Set up a standing instruction from your salary account to avoid this — especially on a longer 5-year RD where even a single gap reduces maturity meaningfully.
Can I prematurely close a ₹1,000 per month RD?
Yes, premature closure is allowed but typically attracts a 1% penalty on the applicable interest rate for the tenure actually held. On a 3-year premature closure of a 5-year RD, you might receive ₹39,846 instead of the scheduled ₹71,057 — useful as an emergency fund fallback but not the primary exit strategy.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Is SIP better than lumpsum investment?
SIP invests a fixed amount monthly, averaging out market volatility through rupee cost averaging. Lumpsum works better when markets are low. For most investors, SIP builds discipline and removes the need to time the market.
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Last updated: March 2026