Recurring Deposit (RD) Calculator Pakistan — FY 2024-25

Banks use quarterly compounding for RDs. The formula: Maturity = P × (1 + r/4)^(4n/12), where P is monthly deposit, r is annual rate, and n is tenure in months. Each monthly deposit earns interest for its remaining tenure, compounded quarterly.

Yes. RD interest is added to your income and taxed at your applicable income tax slab rate. TDS of 10% is deducted if interest exceeds ₹40,000/year (₹50,000 for senior citizens) across all branches of a bank. Submit Form 15G/15H to avoid TDS if your total income is below the taxable threshold.

Banks charge a penalty (typically ₹1–1.5 per ₹100 per month) for late or missed instalments. If you miss multiple consecutive payments, the bank may prematurely close the RD at a reduced interest rate.

Yes, most banks offer loans up to 80–90% of the RD maturity value at 1–2% above the RD rate. It's a useful option if you need temporary liquidity without breaking the RD and losing interest.

RD gives guaranteed, predictable returns (currently 6–7% for most banks). Equity SIPs have potential for 10–14% but with market risk and no capital guarantee. For goals within 3 years: prefer RD. For goals beyond 5 years: equity SIP usually wins on returns but requires tolerance for short-term volatility.