RD Calculator for ₹500 per Month
A ₹500-a-month recurring deposit grows to ₹35,486 over 5 years at the current 6.7% Post Office RD rate — that is ₹5,486 of interest on ₹30,000 deposited. Unlike PPF or SSY, RD interest is taxable: it is added to your income and taxed at your slab rate.
Last updated: 2026-06-03
Total invested
₹30,000
₹500/mo over 5 years
Interest earned
₹5,486
at 6.7% p.a.
Maturity value
₹35,486
after 5 years
₹500/month RD — value after each year
| After | Deposited | Value at 6.7% |
|---|---|---|
| 1 year | ₹6,000 | ₹6,187 |
| 2 years | ₹12,000 | ₹12,798 |
| 3 years | ₹18,000 | ₹19,864 |
| 4 years | ₹24,000 | ₹27,416 |
| 5 years (maturity) | ₹30,000 | ₹35,486 |
Post Office RD is a fixed 5-year scheme; the rows above show the accumulating value at the same 6.7% rate. Bank RDs offer other tenures at their own rates.
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Important: This calculator provides estimates based on the inputs and assumptions you provide. Results are mathematical projections, not financial advice or recommendations. Actual outcomes will vary based on market conditions, policy changes, individual circumstances, and factors not captured by this tool. Verify all figures independently and consult qualified professionals before making financial decisions.
Founding Partner, Tykhe Ventures · Founder, Kompella Technologies
Founding Partner at Tykhe Ventures ($20M AUM, early-stage investing) and Founder of Kompella Technologies, which provides fractional CTO/CPO services to funded startups. NISM XIX-C certified. Built RupayWise because the financial tools available in India were either oversimplified or designed to sell you a product — not help you decide.
How a ₹500/month RD compounds to ₹35,486
A recurring deposit lets you save a fixed amount every month and earns interest that is compounded quarterly. Each ₹500 instalment earns interest for the remaining months of the 5-year term, so the earliest instalments grow the most. At the current 6.7% Post Office rate, ₹30,000 of deposits becomes ₹35,486 — an interest gain of ₹5,486.
Who an RD suits
An RD is ideal for disciplined short-term goals (1–5 years) where you want capital safety and predictable returns, not market risk. For long-term, tax-free goals, PPF (currently 7.1%, tax-free) or, for a daughter, Sukanya Samriddhi (8.2%, tax-free) beat an RD on both rate and tax. The trade-off is liquidity: an RD is easier to start and stop than a 15-year PPF.
Frequently Asked Questions — ₹500/month
How much will ₹500 per month in an RD give after 5 years?
A ₹500 monthly recurring deposit at the 6.7% Post Office RD rate matures to ₹35,486 after 5 years (60 instalments). You deposit ₹30,000 in total and earn ₹5,486 in interest. RD interest is compounded quarterly.
Is the interest on a ₹500/month RD taxable?
Yes. RD interest is fully taxable — added to your income and taxed at your slab rate (there is no tax-free benefit like PPF or SSY). From FY 2025-26, banks and the post office deduct 10% TDS once your total deposit interest for the year crosses ₹50,000 (₹1,00,000 for senior citizens); below that no TDS is deducted, but the interest is still taxable and must be declared. Your ₹5,486 of interest accrues over 5 years, so the per-year figure is what matters for the threshold.
Is the Post Office RD rate fixed, and how do bank RDs compare?
The Post Office 5-year RD rate is 6.7% for Q1 FY 2026-27 (Apr–Jun 2026), set by the Ministry of Finance, and is locked for the full 5-year term once your account is opened. Bank RD rates vary (roughly 6%–7.5%) by bank and tenure and are not government-guaranteed in the same way. Use the calculator below to compare any rate.
What happens if I miss a ₹500 instalment?
In a Post Office RD you can pay a missed instalment later with a small default fee (about ₹1 per ₹100 per month for the ₹500 slab). If four or more instalments are missed the account can lapse, but it can be revived within two months. The monthly amount is fixed when you open the account and cannot be changed later — open a second RD if you want to save more.
Recurring Deposit for Other Amounts
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- FD Calculator — Calculate FD maturity amount with yearly, half-yearly, quarterly, or monthly compounding.
- PPF — Calculate PPF maturity value at 7.1% with EEE tax benefit. Year-by-year growth and partial withdrawal info.
- SIP — Calculate SIP returns with expense ratio impact. See how your monthly investment grows with compounding.
Disclaimer
Figures are computed by RupayWise's tested calculation engine using the official 6.7% rate for Q1 FY2026-27 (1 Apr–30 Jun 2026), assuming the full annual amount is credited at the start of each year and the rate holds for the entire term. Small-savings rates are reviewed quarterly by the Ministry of Finance, so your actual maturity will change if the rate is revised. Educational information, not financial advice.