The interest rate offered by banks on RDs depends on factors like which category you fall under and the tenure you choose. Most banks offer senior citizens a higher rate of interest when compared to regular citizens.

A variety of RD schemes are made available to you by banks. In addition to the regular schemes, special schemes are also offered to help you achieve your goals. The interest rates offered by banks on Recurring Deposit range between 2.75% to 7.50% p.a. (1 year to 5 years and above) for the general public. Senior citizens are offered an additional rate of interest by banks for opening an RD account.


RD Interest Rates (General Public)

RD Interest Rates (Senior Citizen)

HDFC RD Interest Rates

3.75% to 5.75%

4.25% to 6.50%

ICICI RD Interest Rates

4.00% to 5.90%

4.50% to 6.60%

SBI RD Interest Rates

5.45% to 5.65%

5.95% to 6.45%

Axis Bank RD Interest Rates

4.65% to 5.75%

4.90% to 6.50%

Bandhan Bank RD Interest Rates

4.50% to 5.60%

5.25% to 6.35%

Bank of Baroda RD Interest Rates

4.00% to 5.65%

4.50% to 6.65%

Bank of India RD Interest Rates

3.85% to 5.35%

4.35% to 6.10%

Bank of Maharashtra RD Interest Rates

4.25% to 5.40%

4.75% to 5.90%

Canara Bank RD Interest Rates

4.65% to 5.75%

5.15% to 6.25%

Citibank RD Interest Rates

2.75% to 6.10%

3.25% to 6.60%

City Union Bank RD Interest Rates

6.15% to 6.00%

6.25% to 6.00%

DBS Bank RD Interest Rates

3.00% to 6.25%

3.50% to 6.75%

Dhanalakshmi Bank RD Interest Rates

4.50% to 6.00%


Federal Bank RD Interest Rates

4.80% to 6.00%

5.30% to 6.65%

IDBI Bank RD Interest Rates

5.60% to 5.80%

6.10% to 6.55%

Indian Bank RD Interest Rates

4.00% to 5.65%

4.50% to 6.15%

Indian Overseas Bank RD Interest Rates

4.65% to 5.85%

5.15% to 6.35%

IndusInd Bank RD Interest Rates

5.50% to 6.25%

6.25% to 7.00%

Jammu and Kashmir Bank RD Interest Rates

5.00% to 6.00%

5.50% to 6.50%

Karnataka Bank RD Interest Rates

5.00% to 5.70%

5.40% to 6.20%

Karur Vysya Bank RD Interest Rates

5.75% to 6.10%


Kotak Mahindra Bank RD Interest Rates

5.00% to 6.10%

5.50% to 6.60%

Post Office RD Rate



Punjab National Bank RD Interest Rates

4.50% to 5.75%

5.00% to 6.45%

Saraswat Bank RD Interest Rates

5.10% to 6.00%

5.45% to 6.75%

South Indian Bank RD Interest Rates

4.60% to 6.00%

5.10% to 6.50%

TMB RD Interest Rates

5.50% to 5.75%

6.00% to 6.25%

Union Bank of India RD Interest Rates

4.60% to 5.80%


Yes Bank RD Interest Rates

5.50% to 6.75%

6.00% to 7.50%

Regular Savings Scheme - Banks offer recurring deposits to Indian citizens above the age of 18 years. Customers can choose to deposit a fixed sum of money for a period of time, usually between 6 months to 10 years. Interest can be computed on simple or compound basis. At the end of the tenure, the lump sum amount can be withdrawn. Some schemes allow you to reinvest the money. You can open a recurring deposit for as little as Rs. 10 per month. The interest rates on the regular recurring deposits range between 2.75% to 7.50% p.a.

Junior RD Schemes - Banks also offer recurring deposit schemes for kids. Parents or guardians can open these deposits for their children to start saving for their future, education and other needs. Students can also avail of these deposit schemes. Learning to handle finances and the importance of saving at a young age will help inculcate a smart sense of money. The interest earned on these deposits will either be equivalent to the regular RD schemes or be higher to encourage saving amongst the youngsters.

Senior Citizens RD Schemes - Banks offer higher rates of interest for senior citizens. Usually, 0.50% per annum is given over and above the prevailing interest rate. The interest rates range from 3.25% to 7.50%. There are also schemes available that are designed to help senior citizens during their retirement and old age.

NRE/NRO RD schemes - NRE and NRO recurring deposit accounts may be offered a lower interest rate. Furthermore, senior citizens who hold NRE/NRO accounts will not be offered an additional interest rate.

Special RD Schemes - Banks offer different schemes designed to suit the needs and capabilities of a variety of people. These schemes generally carry a higher rate of interest as your goal is more specific. ICICI Bank offers the iWish deposit which allows you to contribute various amounts of money to your RD account. Furthermore, other people can also contribute to helping you reach your goals. There are RD schemes with free life insurance available. With certain schemes, you are allowed to withdraw the money in part without breaking the full deposit. Other schemes reward you with a bigger lump sum amount which makes it a worthwhile investment.

Some of the features of using a Recurring Deposit article are:

  • Investing in RD inculcates a habit of saving
  • You can start investing with Rs.500 which is the minimum amount most banks will require you to deposit. You can also gradually increase the deposit amount
  • You can open an RD account for up to 10 years
  • There are banks who may allow you to prematurely withdraw the amount from your RD account
  • The interest rate offered is equivalent to what is offered for a fixed deposit
  • You can give a standing instructions to the bank to automatically deduct the deposit amount from your bank account every month

Type of account - The account you hold will make a difference in the eligible interest rates. Regular savings accounts usually get higher interest than the NRE/NRO accounts. Some banks offer the same interest rates to both account holders.

Tenure - The tenure of your deposit is one of the most important factors in determining the RD interest rate. Medium-term deposits generally earn a much higher interest rate. Some banks offer the highest rate on long-term deposits of 10 years. But this is not always the case as some banks also offer the same interest rate on a 1-year deposit as well as a 10-year deposit.

Age - Almost all banks offer a higher rate of interest to senior citizens. This rate is usually 0.5% per annum higher than the regular interest rates. Junior accounts can also stand to earn a higher interest rate. This depends on the bank’s offer on minor accounts.

Choice of bank - Interest rates vary quite a bit between different banks. Currently, the top banks offer recurring deposits starting at 7% per annum interest. Nationalised banks tend to offer a higher interest rate of up to 7.50% per annum.

Schemes on offer - Banks also have different recurring deposit schemes running. Corporation Bank has a Millionaire Scheme on offer wherein you will receive a million rupees at the end of the scheme. This deposit carries a very high interest rate of 9.25% per annum. So the choice of your deposit scheme will also factor into the interest rate. Depending on the benefits offered with the RD scheme, your interest rate may vary.


Safe investment - Recurring deposits carry no risk or very little at all. Choose a stable and secure bank to ensure that your money is safe. Recurring deposits are just a simple investment of your money and do not dabble in the markets. Therefore the interest rate will not fluctuate and you do not stand to lose any money.

Earn while you save - Your deposit will earn interest from your first contribution. The interest accumulated will increase through your tenure. The longer you invest, the more interest you will earn.

Lump sum payout - At the end of the RD tenure, you will receive a lump sum of cash. This amount includes your contribution plus the interest earned. You can use the money to reinvest it or spend it on what you were saving for.

Online access - Most banks offer Internet Banking services which you can use to open deposits, access your accounts and see the progress of your deposit. You can also view the different interest rates offered. You can pick the tenure and deposit amount suitable to you and also earn the highest interest offered.

Loan offers - When you have an RD with a bank, you sometimes get pre-approved loan offers. In other cases, your loan applications will be given preference and your processing might be faster. In addition to this, banks offer concessional interest rates on loans as well.

Fixed Deposits and Recurring Deposits are among the most popular investment options in India. If you are planning to invest in either of these, you must be aware of the differences between Recurring Deposit and Fixed Deposits. It is very common for first-time investors to get confused between RD and FD. While both Recurring Deposits and fixed deposits are offered by most of the banks in India, each comes with its own advantages and disadvantages.

Before investing in a Recurring Deposit or Fixed Deposit scheme, you must be familiar with certain important features of the scheme such as the rate of interest and investment limit.

Tax on Recurring Deposit Interest rates

Recurring Deposit is a very popular investment scheme amongst the risk-averse Indians mainly because of the good returns and savings benefits that it offers. In a Recurring Deposit scheme, you will have to deposit a fixed amount of money every month for a predefined period of time and the amount will fetch you interest. But, for interest that you earn on Recurring Deposit investment amounts, 10% will be deducted as TDS. Also, the Tax Deducted at Source (TDS) will be 20% if the Pan information is not provided. The Tax Deducted at Source (TDS) varies depending on your annual income, your age and the interest that you accrue on your RD amount.


Almost all banks that operate in the country offer attractive interest rates on RDs. Among all the banks listed above, Lakshmi Vilas bank offers the highest interest on RDs to both general citizens and senior citizens.

Read on to find more about the best Recurring Deposit interest rates in India

The rate of interest is taken into consideration in order to calculate the recurring deposit amount. Various factors such as amount invested, tenure, etc. are taken into consideration.

The formula to calculate RD is given below:

M = R [(1+i) n – 1]/ 1 – (1+i) -1/3

In the formula,

‘M’ stands for maturity value

‘R’ stands for monthly instalment

‘n’ stands for number of quarters

‘i’ stands for rate of interest/400