Building a steady savings habit is one of the best ways to grow your wealth, and recurring deposits make it completely effortless. If you’re setting aside a fixed portion of your income every month, our Recurring Deposit Calculator is the perfect tool to map out your money’s growth. Just plug in your monthly contribution, interest rate, and timeframe, and this handy RD Calculator will instantly show you your total interest earned and the final payout you can expect. Some financial expert also says RD is like SIP in FD, which we only understand and do SIP in Mutual Fund only.
RD Calculator Nepal
Recurring Deposit with NRB quarterly compounding Β· Nepal banks & finance companies
π¦ Nepal commercial banks: 7β10% p.a. | Development banks: 8β11% | Finance cos: 9β12%
Minimum 3 months as per NRB guidelines
Nepal standard: 5% TDS for individuals (Income Tax Act 2058). Set 0 to exclude TDS.
Nepal banks typically deduct 1β2% from applicable rate if closed before maturity
| Period | Deposit (ΰ€°ΰ₯) | Interest (ΰ€°ΰ₯) | TDS (ΰ€°ΰ₯) | Balance (ΰ€°ΰ₯) |
|---|---|---|---|---|
| Click Calculate to see breakdown | ||||
π Nepal RD Rules (NRB Guidelines)
- Compounding: Nepal Rastra Bank (NRB) mandates quarterly compounding for all bank deposits. This calculator follows that standard.
- Minimum tenure: 3 months as per NRB circular. Most banks offer RD from 3 months to 10 years.
- Interest rates (2024β25): Commercial banks: 7β10% p.a. | Development banks: 8β11% | Finance companies: 9β12% p.a.
- TDS: 5% Tax Deducted at Source on interest for individual depositors under Nepal Income Tax Act 2058 (Section 87). Set to 0 if you are tax-exempt.
- Premature withdrawal: Banks deduct 1β2% from the applicable interest rate if RD is closed before maturity. Your principal is always safe.
- Popular Nepal banks for RD: Nepal Bank Limited, Rastriya Banijya Bank, Nabil Bank, NIC Asia, Global IME, Everest Bank, Sanima Bank, and others.
- RD vs FD: RD allows monthly installments (ideal for salaried employees), while FD requires a one-time lump sum deposit.
β οΈ For illustration only. Interest rates vary by bank and change periodically. Verify current rates with your bank before investing. This is not financial advice.
How to use the Recurring Deposit (RD) Calculator
A Recurring Deposit (RD) is one of the safest ways to build a habit of saving while earning interest that compounds quarterly, right in line with Nepal Rastra Bank (NRB) guidelines. It’s just like doing SIP in your Fixed Deposit. As with SIP, here the preset amount will be deducted from your account, but in SIP, you have to pay it manually or e-mandate for an auto transfer. Anyway, here is how to use this calculator to figure out exactly how much your monthly savings will grow over time:
Step 1: Set Your Monthly Deposit
- Monthly Deposit (NPR): Enter the fixed sum of money that you want to place in the RD account every single month. As per your requirement, you have to preset the amount that can be deducted from your saving account automatically.
Step 2: Enter the Interest Rate
- Annual Interest Rate: Now you have to enter the expected interest that you will get from your RD Plan. For a clear and actual return, you can check the current RD Interest rate of each BFI where you are planning to do RD. So, find the current interest rate of RD and enter it here,
Step 3: Choose Your Tenure
- RD Tenure: Now you have to enter the total no. of months upto you want to lock your deposit of upto you want to deposit. Keep in mind that per NRB guidelines, the minimum tenure for a Recurring Deposit is 3 months. Most people choose terms between 12 and 60 months to maximize compounding.
Step 4: Factor in the Taxes
- TDS on Interest: In Nepal, the standard Tax Deducted at Source (TDS) on interest earned by individuals is 5% (as per the Income Tax Act 2058). In this RD Calculator, the 5% TDS is shown by default/ automatically, so you don’t need to touch this part for the calculation. But if you want to calculate without TDS, then you can set it as ‘0’ too. Also, for some non-taxable entities, this 5% TDS may not be applicable.
Step 5: Check the Premature Penalty (Optional)
- Premature Penalty: Life happens, and sometimes you need to break your RD before it matures. In Nepal, the banks generally deduct a 1% to 2% penalty from the applicable interest rate if you close the account or break the RD early. You can adjust this slider to see how breaking your RD early would affect your final payout. If you are not that one, then please set it as ZERO ‘0’.
Step 6: See Your Returns
So, after adding all inputs, you can simply tap/click on the Calculate RD Returns button! Here you will get an instany results showing the complete details by factoring all the details, including Total Deposit, Total Interest, Total Deduction, Net Maturity and many more.
Also, in the right-side widget (on desktop) or below the calculate button, you will see the complete breakdown of your investment with the total Maturity Amount (Gross), including the total amount of Deposit, Total Interest, Total Deduction (if 5%TDS is applied), Net Maturity value, including Effective Yield.
