RD Calculator - Recurring Deposit Interest Rate Calculator Online

Dec 16, 2025
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In the ever-evolving landscape of financial planning, one product has consistently stood the test of time for those who wish to build a disciplined savings habit — the Recurring Deposit (RD). Among the many options available in the Indian banking sector, the Federal Bank Recurring Deposit stands out as a popular and secure investment instrument that helps individuals accumulate a decent corpus over a fixed period.

This blog explores every essential detail about Federal Recurring Deposit (RD) — its features, benefits, interest rates, eligibility, application process, and why it’s a smart choice for conservative investors. Whether you're a salaried individual, student, homemaker, or self-employed, Federal RD offers a risk-free and structured way to grow your savings.

What Is a Federal Recurring Deposit?

A Federal Recurring Deposit is a financial product offered by Federal Bank, where you deposit a fixed amount of money every month for a predetermined period. In return, you earn interest at a rate decided by the bank. Once the RD matures, you receive the total sum — your cumulative deposits plus the interest accrued.

It’s an ideal scheme for those who want to inculcate a regular savings habit without taking high risks. Unlike Fixed Deposits, where you need a lump sum amount to invest, RDs are more accessible since they allow you to invest smaller amounts regularly.

Key Features of Federal Recurring Deposit

Minimum Monthly Deposit
Federal Bank allows you to start a recurring deposit with a minimum monthly contribution of ₹50, making it accessible for a wide section of society.
Flexible Tenure Options
You can choose a tenure ranging from 6 months to 10 years, depending on your savings goals.
Attractive Interest Rates
The interest rates on Federal RD are competitive and usually on par with Fixed Deposits. Rates may vary depending on the tenure and prevailing economic conditions.
Compounding Benefit
Interest is compounded quarterly, which helps your money grow faster over time.
Loan Facility Available
In case of emergencies, you can avail of a loan against your recurring deposit of up to 90% of the deposit amount.
Nomination Facility
You can nominate a person to receive the RD proceeds in case of your unfortunate demise.
Auto-Debit Facility
The RD amount can be automatically debited from your savings account every month, ensuring timely deposits.

Federal RD Interest Rates (as of recent update)

Federal Bank offers competitive interest rates on recurring deposits. The rates can vary depending on:

The deposit amount
The tenure of the RD
The type of customer (regular, senior citizen, NRI)

Generally, senior citizens enjoy an additional interest rate of 0.50% over the regular rates. While these rates are subject to periodic change, Federal Bank ensures they remain competitive with market trends.

Benefits of Opening a Federal Recurring Deposit

1. Disciplined Savings

Federal RD helps inculcate the habit of saving regularly. Since the amount is auto-debited, you stay committed to your financial goals.

2. Low Entry Barrier

You don’t need a large amount to start — just ₹50 a month. This makes it a perfect instrument for students, daily wage workers, and homemakers.

3. Assured Returns

Unlike mutual funds or stock market investments, RDs are free from market risks. You get assured returns on maturity.

4. Safe Investment

As a product backed by a reputed institution like Federal Bank, your investment is safe and secure.

5. Customization Options

You can choose your monthly deposit amount and tenure as per your budget and goals.

6. Loan Against RD

Rather than breaking the RD prematurely, you can take a loan against it to meet sudden financial needs.

Who Should Invest in Federal Recurring Deposit?

Federal Recurring Deposit is best suited for:

First-time investors who want to start small and safe.
Students aiming to save part of their pocket money or scholarship.
Homemakers who wish to set aside a portion of the monthly household budget.
Salaried professionals looking to build an emergency fund.
Senior citizens preferring assured returns over volatile instruments.

In short, anyone with a stable monthly income and a desire to build a savings corpus can benefit from this product.

How to Open a Federal Recurring Deposit Account

Federal Bank offers both offline and online methods to open an RD account:

Offline Method:

Visit your nearest Federal Bank branch.
Fill out the RD application form.
Submit necessary documents (ID, address proof, passport-size photo).
Choose the deposit amount and tenure.
Link your savings account for monthly auto-debit.
Submit the form and receive your RD account details.

Online Method:

Log in to your Federal Bank net banking or FedMobile app.
Navigate to the Deposit section.
Select Open New Recurring Deposit.
Enter the amount, tenure, and nominee details.
Confirm the details and submit the request.
RD account gets opened instantly.

Documents Required to Open a Federal RD

To open an RD account with Federal Bank, you’ll need the following documents:

PAN card
Aadhaar card
Passport-size photograph
Address proof (Utility bill, Passport, etc.)
Existing savings account details (for auto-debit)

For NRIs, additional documents such as passport, visa, and overseas address proof may be required.

Premature Withdrawal and Penalties

Federal Bank allows premature withdrawal of RDs, but it comes with a penalty. Typically, the interest payable will be 1% lower than the applicable rate for the actual period the deposit was held.

While it’s always best to let the RD mature, this option provides liquidity in emergencies.

Taxation on Federal Recurring Deposits

Interest is Taxable:
The interest earned on RDs is added to your total income and taxed as per your income tax slab.
TDS Applicability:
If the total interest from deposits with Federal Bank exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, TDS at 10% is deducted.
Form 15G/15H:
If your total income is below the taxable limit, you can submit Form 15G/15H to avoid TDS deduction.

How to Close or Mature a Federal RD

On the maturity date, the Federal Bank automatically credits the maturity amount to your linked savings account. If you wish to close the RD before maturity:

Visit the branch or use net banking.
Request for premature closure.
The applicable interest (after penalty) is calculated and credited to your account.

Digital Features and Customer Support

Federal Bank has embraced digital innovation, offering user-friendly platforms for managing your RD account. Using the FedMobile app or internet banking, you can:

Open or close RD accounts
Check balance and maturity details
Modify nominee
Get e-statements
Raise service requests

For any queries or support, customers can reach out via:

24x7 customer care
WhatsApp banking
Email or phone support
Nearest branch visit

Comparison With Other Saving Instruments

While Federal RD offers a safe, consistent return, it's important to understand how it compares with alternatives:

FDs: Require lump sum but offer slightly higher returns.
SIPs (Mutual Funds): Offer higher long-term returns but carry market risk.
Post Office RD: Also safe, but Federal RD provides easier digital access and more flexibility.
Savings Accounts: More liquid but lower interest compared to RDs.

If you're looking for guaranteed returns, minimal risk, and regular savings, a Federal RD is a smart pick.

Tips to Maximize Returns from Your Federal RD

Choose a longer tenure to benefit from compound interest.
Avoid premature withdrawals to escape penalties.
Submit 15G/15H forms (if eligible) to reduce tax burden.
Use the auto-debit feature to avoid missed payments.
Increase RD amount periodically if your income rises.

FAQs on Federal Recurring Deposit

Q1. What is the minimum amount to start a Federal RD?

The minimum amount to start a Federal RD is ₹50 per month, making it highly affordable.

Q2. What is the maximum tenure for Federal RD?

You can choose a tenure of up to 10 years (120 months) for your recurring deposit.

Q3. Can I open a Federal RD account online?

Yes, existing customers can open an RD account via internet banking or the FedMobile app.

Q4. What happens if I miss an RD installment?

If you miss a monthly installment, a nominal penalty may be charged. Multiple missed payments may lead to RD closure.

Q5. Is the interest on Federal RD taxable?

Yes, the interest earned is added to your income and taxed as per your income slab. TDS may also be deducted if applicable.

Q6. Do senior citizens get higher interest on Federal RD?

Yes, senior citizens enjoy an additional interest rate of 0.50% over the standard rates.

Q7. Can I take a loan against my Federal RD?

Yes, you can take a loan up to 90% of your RD value instead of breaking it prematurely.

Q8. Can NRIs open a Federal Recurring Deposit?

Yes, NRIs can open an RD account with Federal Bank under the NRE or NRO scheme, depending on their requirements.

Q9. Can I close my RD account before maturity?

Yes, you can close the RD prematurely. However, a penalty on interest rate will be applied.

Q10. Is there a nomination facility in Federal RD?

Yes, you can nominate someone to receive the RD proceeds in the event of your demise.

Conclusion

The Federal Recurring Deposit is a practical and efficient savings tool for anyone aiming to build a stable financial future. With its flexibility, assured returns, and wide accessibility, it serves as a reliable stepping stone toward your short and long-term financial goals.

Whether you’re saving for a vacation, a gadget, your child's education, or simply creating a financial cushion, the disciplined nature of Federal RD ensures you stay on track without feeling overwhelmed. Plus, the strong digital infrastructure of Federal Bank makes the entire process smooth and hassle-free.

If you’re ready to start saving wisely, a Federal Recurring Deposit could be your first step toward financial empowerment.