Monthly deposits, quarterly compounding — the same formula banks and India Post use — plus what the interest costs you in tax.
Maturity amount
| Total deposited | |
| Interest earned | |
| Tax on interest at your slab (incl. cess) | |
| Post-tax maturity |
Each monthly instalment earns quarterly-compounded interest for the time it stays invested: maturity = Σ R × (1 + r/4)^(4 × tᵢ). ₹5,000 a month at 7% for 5 years → about ₹3,59,000 on ₹3,00,000 deposited.
Bank RDs: yes, 10% under 194A once interest from that bank crosses ₹50,000 in a year (₹1 lakh for seniors). Post-office RD: no TDS, but the interest is taxable at your slab and must be declared each year.
RD: guaranteed 6.5–7.5%, fully taxable, ideal for 1–3 year goals. Equity SIP: market-linked, LTCG 12.5% above ₹1.25 lakh, better for 5+ years. Use the comparison field above; the SIP calculator has the full projection.
Banks charge a small penalty per ₹100 per month of default; post office allows revival within specified months with a default fee. Four consecutive defaults can discontinue a post-office RD.
See which regime and which instruments leave you more in hand.
Income Tax Calculator →