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RD Rates, Calculator & Rules
Recurring Deposit Interest Rates 2026
Build savings month by month with guaranteed returns. Compare RD rates of 26 banks and the Post Office, calculate your maturity amount, and learn the rules on missed instalments, premature closure and tax.
Rates checked 27 September 2026 · Post Office RD 6.7%7.25%Highest · Bandhan Bank
7.75%Highest senior
6.7%Post Office RD
₹100Start from / month
7.25%Bandhan Bank
6.40%SBI RD
RDSAVE EVERY MONTH
6.7%Post Office
₹3,56,829₹5k × 60 months
RD interest rates — 26 banks compared
RD rates usually mirror a bank’s FD card for the same tenure. After the RBI cut the repo rate to 5.25% in 2025, large banks pay about 6.1%–6.5% for 1–5 year RDs; some private and co-operative banks still pay 7% or more.
General (highest)Senior citizen (highest)
5.5%6%6.5%7%7.5%8%
| Bank | Highest RD rate | Senior (highest) | 1 year | 3 years | 5 years | Min. instalment |
|---|---|---|---|---|---|---|
| Bandhan BankPrivate sector | 7.25%2 - <3 years | 7.75% | 7.00% | 7.25% | 5.85% | Rs 100/month, multiples of Rs 1 |
| YES BankPrivate sector | 7.00%21 – 33 months | 7.75% | 6.65% | 7.00% | 6.75% | Rs 1,000/month |
| IndusInd BankPrivate sector | 7.00%18 months | 7.50% | 6.75% | 6.90% | 6.65% | ₹1,000 |
| Tamilnad Mercantile BankPrivate sector | 7.00%2 years – <3 years | 7.50% | 6.80% | 6.70% | 6.70% | — |
| Dhanlaxmi BankPrivate sector | 7.00%1111 days | 7.50% | 6.25% | 6.50% | 6.50% | Rs 1,000/month, multiples of Rs 500 |
| Saraswat Co-operative BankCo-operative bank | 7.00%Above 3 years – 5 years | 7.40% | 6.60% | 6.80% | 7.00% | ₹500 |
| South Indian BankPrivate sector | 6.80%2 years | 7.30% | 6.25% | 6.20% | 5.70% | ₹100 |
| Federal BankPrivate sector | 6.75%36 months | 7.25% | 6.25% | 6.75% | 6.40% | Rs 50/month, multiples of Rs 10 |
| Kotak Mahindra BankPrivate sector | 6.70%15 – 33 months | 7.20% | 6.50% | 6.40% | 6.40% | ₹100 |
| Karnataka BankPrivate sector | 6.65%555 days | 7.05% | 6.50% | 6.15% | 6.15% | ₹50 |
| Bank of IndiaPublic sector | 6.60%450 days | 7.10% | 6.25% | 6.25% | 6.25% | Rs 500/month (Flexi RD Rs 1,000) |
| Indian Overseas BankPublic sector | 6.60%444 days | 7.10% | 6.50% | 6.40% | 6.10% | ₹50 |
| DBS Bank IndiaForeign bank | 6.60%376 – 599 days | 7.10% | 6.30% | 6.40% | 6.40% | Rs 100/month |
| Union Bank of IndiaPublic sector | 6.55%555 days | 7.05% | 6.20% | 6.10% | 6.00% | ₹100 |
| ICICI BankPrivate sector | 6.50%3 – 5 years | 7.10% | 6.25% | 6.45% | 6.50% | ₹500 (multiples of ₹100) |
| IDBI BankPrivate sector | 6.50%2 – 3 years | 7.00% | 6.20% | 6.50% | 6.25% | Rs 500/month (SSP) |
| HDFC BankPrivate sector | 6.45%18 months | 6.95% | 6.25% | 6.45% | — | ₹500 (steps of ₹100); ₹1,000 online |
| Axis BankPrivate sector | 6.45%15 – 36 months | 7.20% | 6.25% | 6.45% | 6.45% | ₹500 |
| UCO BankPublic sector | 6.45%444 days | 6.95% | 6.10% | 6.00% | 6.00% | ₹100 |
| State Bank of IndiaPublic sector | 6.40%2 – <3 years | 7.05% | 6.25% | 6.30% | 6.05% | ₹100 (multiples of ₹10) |
| Punjab National BankPublic sector | 6.40%390 days | 6.90% | 6.10% | — | 6.00% | Rs 100/month, multiples of Rs 1 |
| Bank of BarodaPublic sector | 6.30%3 – 5 years | 7.00% | 6.10% | 6.25% | 6.30% | ₹50 |
| Central Bank of IndiaPublic sector | 6.25%2 – 3 years | 6.75% | 6.20% | 6.25% | 6.00% | Rs 100/month, multiples of Rs 50 |
| Canara BankPublic sector | 6.25%1 year - 1 year 3 months | 6.75% | 6.25% | 6.25% | 6.25% | Rs 50/month (Nitya Nidhi); Flexi RD Rs 500 |
| Indian BankPublic sector | 6.20%>1 year – <2 years | 6.70% | 6.10% | 6.05% | 6.00% | ₹100 |
| Punjab & Sind BankPublic sector | 5.95%2 years | 6.45% | 5.85% | — | 5.95% | ₹10 |
Rates for RDs of 6 months and above, from each bank’s published RD / term-deposit card (dates on bank pages). “—” = no published slab for that exact tenure.
What ₹5,000 a month grows to
| Bank | 1 year (₹60,000 paid) | 3 years (₹1.8 lakh paid) | 5 years (₹3 lakh paid) |
|---|---|---|---|
| Bandhan Bank | ₹62,311 | ₹2,01,474 | ₹3,48,941 |
| YES Bank | ₹62,193 | ₹2,00,686 | ₹3,57,300 |
| IndusInd Bank | ₹62,227 | ₹2,00,372 | ₹3,56,359 |
| Tamilnad Mercantile Bank | ₹62,244 | ₹1,99,746 | ₹3,56,829 |
| Dhanlaxmi Bank | ₹62,060 | ₹1,99,122 | ₹3,54,954 |
| Saraswat Co-operative Bank | ₹62,177 | ₹2,00,059 | ₹3,59,664 |
| South Indian Bank | ₹62,060 | ₹1,98,190 | ₹3,47,571 |
| Federal Bank | ₹62,060 | ₹1,99,902 | ₹3,54,021 |
| Kotak Mahindra Bank | ₹62,143 | ₹1,98,811 | ₹3,54,021 |
| Karnataka Bank | ₹62,143 | ₹1,98,035 | ₹3,51,701 |
| Bank of India | ₹62,060 | ₹1,98,345 | ₹3,52,627 |
| Indian Overseas Bank | ₹62,143 | ₹1,98,811 | ₹3,51,239 |
| Post Office RD | — | — | ₹3,56,829 |
Maturity of ₹5,000 a month, general rate, quarterly compounding, before tax.
RD calculator
Pick a bank to load its highest RD rate, or enter your own.
How a recurring deposit works
- Choose instalment & tenureE.g. ₹5,000 a month for 3 years; tenure is usually in multiples of 3 months.
- Auto-debit every monthThe instalment is debited from your savings account on a fixed date.
- Interest compounds quarterlyEach instalment earns interest from its deposit month until maturity.
- Receive maturityInstalments plus interest are credited to your account, or you can reinvest in an FD.
Ready reckoner
| Instalment | 1 yr @ 6.5% | 3 yrs @ 6.5% | 5 yrs @ 6.5% | 5 yrs @ 7% | 10 yrs @ 7% |
|---|---|---|---|---|---|
| ₹1,000 / month | ₹12,429 | ₹39,824 | ₹70,991 | ₹71,933 | ₹1,73,702 |
| ₹2,000 / month | ₹24,857 | ₹79,649 | ₹1,41,982 | ₹1,43,866 | ₹3,47,403 |
| ₹5,000 / month | ₹62,143 | ₹1,99,122 | ₹3,54,954 | ₹3,59,664 | ₹8,68,509 |
| ₹10,000 / month | ₹1,24,286 | ₹3,98,244 | ₹7,09,908 | ₹7,19,328 | ₹17,37,017 |
| ₹25,000 / month | ₹3,10,716 | ₹9,95,609 | ₹17,74,770 | ₹17,98,320 | ₹43,42,543 |
Features & benefits
Disciplined saving
A fixed monthly commitment builds a habit, like an SIP but with guaranteed returns.
Locked rate
The rate on the opening day applies to every instalment till maturity.
Start small
Instalments from ₹50–₹100 at many banks and the Post Office.
Insured
DICGC cover up to ₹5 lakh per depositor per bank; Post Office RD is sovereign-backed.
Loan facility
Borrow against the RD balance instead of closing it.
Senior premium
Usually +0.50% for depositors aged 60+.
Senior citizen RD rates
| Bank | Highest senior RD rate | Tenure | Premium over best general rate |
|---|---|---|---|
| YES Bank | 7.75% | 36 – 59 months | 0.75% |
| Bandhan Bank | 7.75% | 2 - <3 years | 0.50% |
| IndusInd Bank | 7.50% | 18 months | 0.50% |
| Tamilnad Mercantile Bank | 7.50% | 2 years – <3 years | 0.50% |
| Dhanlaxmi Bank | 7.50% | 1111 days | 0.50% |
| Saraswat Co-operative Bank | 7.40% | Above 3 years – 5 years | 0.40% |
| South Indian Bank | 7.30% | 2 years | 0.50% |
| Federal Bank | 7.25% | 36 months | 0.50% |
| Axis Bank | 7.20% | 60 – 120 months | 0.75% |
| Kotak Mahindra Bank | 7.20% | 15 – 33 months | 0.50% |
| ICICI Bank | 7.10% | 3 – 5 years | 0.60% |
| Bank of India | 7.10% | 450 days | 0.50% |
| Indian Overseas Bank | 7.10% | 444 days | 0.50% |
| DBS Bank India | 7.10% | 376 – 599 days | 0.50% |
| State Bank of India | 7.05% | 5 – 10 years | 0.65% |
| Union Bank of India | 7.05% | 555 days | 0.50% |
| Karnataka Bank | 7.05% | 555 days | 0.40% |
| Bank of Baroda | 7.00% | 5 – 10 years | 0.70% |
| IDBI Bank | 7.00% | 2 – 3 years | 0.50% |
| HDFC Bank | 6.95% | 18 months | 0.50% |
| UCO Bank | 6.95% | 444 days | 0.50% |
| Punjab National Bank | 6.90% | 390 days | 0.50% |
| Central Bank of India | 6.75% | 2 – 3 years | 0.50% |
| Canara Bank | 6.75% | 1 year - 1 year 3 months | 0.50% |
| Indian Bank | 6.70% | >1 year – <2 years | 0.50% |
| Punjab & Sind Bank | 6.45% | 2 years | 0.50% |
Missed instalment & premature closure — bank-wise
| Bank | Minimum instalment | Missed / late instalment | Premature closure |
|---|---|---|---|
| State Bank of India | ₹100 (multiples of ₹10) | Nominal penalty for delayed instalment, varies with instalment amount | 1% penalty; rate as per bank deposit policy |
| HDFC Bank | ₹500 (steps of ₹100); ₹1,000 online | Interest on daily balances if instalments pending at maturity | 1% charge; no interest if closed before lock-in |
| ICICI Bank | ₹500 (multiples of ₹100) | ₹12 per ₹1,000 per month of delay, deducted from maturity interest | 0.50%–1.50% penalty depending on tenure and deposit size |
| Axis Bank | ₹500 | ₹10 per ₹1,000 per month (RDs opened after Aug 2016) | Rate 1% below that applicable for period held |
| Punjab National Bank | Rs 100/month, multiples of Rs 1 | Rs 1 per Rs 100 per month | Allowed; 1% penal interest on applicable rate |
| Bank of Baroda | ₹50 | As per bank rules | 1% on applicable/agreed rate (deposits <12 months or ₹5 lakh–₹1 crore); ₹1 crore+: 31 days' notice, 1.5% deduction |
| Kotak Mahindra Bank | ₹100 | Penal interest of RD rate + 2% p.a. for the month of delay | Lower of contracted/holding-period rate minus 0.5%–1%; no interest if closed within 1 month |
| YES Bank | Rs 1,000/month | 1% charged for missed instalments | Allowed; charges may apply (none on Flexigain RD) |
| Union Bank of India | ₹100 | No penalty for missed instalments (Union Monthly Plus) | Allowed; interest for completed period at applicable rate, penalty per bank policy |
| Bandhan Bank | Rs 100/month, multiples of Rs 1 | Nominal penalty as per bank rules | Allowed; 1% penalty |
| IndusInd Bank | ₹1,000 | Nominal penalty on late/defaulted instalments (amount not stated) | Allowed; interest recalculated for actual tenure, less penalty |
| Central Bank of India | Rs 100/month, multiples of Rs 50 | Rs 1.50 per Rs 100 (up to 5 yrs); Rs 2.00 per Rs 100 (above 5 yrs) | Allowed; 1% penal interest |
| IDBI Bank | Rs 500/month (SSP) | As per bank rules | Allowed; 1% reduction in applicable rate |
| Karnataka Bank | ₹50 | Missed instalments can be paid later with a small charge | Penalty 0.50% (below Rs 2 crore) / 1.00% (above Rs 2 crore) on applicable rate |
| South Indian Bank | ₹100 | Rs 1.50 per Rs 100 per month beyond grace period | 1% penalty |
| Tamilnad Mercantile Bank | — | Penal interest if instalment delayed beyond 30 days; account may be closed if >3 months in arrears (1% penalty on closure) | Permitted per bank's RD rules (1% penalty on bank-initiated closure) |
| Canara Bank | Rs 50/month (Nitya Nidhi); Flexi RD Rs 500 | As per bank rules | As per bank rules |
| Bank of India | Rs 500/month (Flexi RD Rs 1,000) | Rs 1.50 per Rs 100 per month (up to 5 yrs); Rs 2.00 per Rs 100 (above 5 yrs) | Below Rs 5 lakh: 0.50% penalty if before 12 months, none after; Rs 5 lakh+: 1% penalty |
| Indian Bank | ₹100 | Nominal penalty on late/missed instalments (amount not stated) | Allowed; interest at rate for actual tenure run, less applicable penalty |
| Indian Overseas Bank | ₹50 | Nominal penalty for late instalments (rate not stated) | Allowed; 0.5%-1% penalty, interest recalculated for actual tenure |
| Federal Bank | Rs 50/month, multiples of Rs 10 | As per bank rules | Permitted at reduced interest per bank rules |
| DBS Bank India | Rs 100/month | As per bank rules | Allowed; may attract charges or lower interest |
| Dhanlaxmi Bank | Rs 1,000/month, multiples of Rs 500 | Nominal penalty (rate not specified) | No interest if closed within 12 months; after 12 months interest for actual tenure less 1% |
| Punjab & Sind Bank | ₹10 | As per bank rules | Allowed; nominal penal charges (amount not stated) |
| Saraswat Co-operative Bank | ₹500 | Penalty may be levied on delayed instalments (amount not stated) | 1% below applicable rate for period deposit remained with bank |
| UCO Bank | ₹100 | Interest may be computed differently (daily balance basis) on missed/delayed instalments | 1% if closed within 1 year, 0.5% after 1 year (Sowbhagya RD) |
Tax on RD interest
| Point | Rule |
|---|---|
| Taxability | Slab rate, every year on accrual |
| TDS | 10% above ₹50,000 FD+RD interest per bank per year (₹1 lakh for 60+); 20% without PAN |
| Avoid TDS | Form 121 (earlier 15G/15H) if tax on total income is nil |
| Deductions | No 80C; 80TTB up to ₹50,000 for seniors (old regime) |
Post Office RD — 6.7% for 5 years
| Monthly deposit | Total paid (60 months) | Maturity @ 6.7% | Interest |
|---|---|---|---|
| ₹500 | ₹30,000 | ₹35,683 | ₹5,683 |
| ₹1,000 | ₹60,000 | ₹71,366 | ₹11,366 |
| ₹2,000 | ₹1,20,000 | ₹1,42,732 | ₹22,732 |
| ₹5,000 | ₹3,00,000 | ₹3,56,829 | ₹56,829 |
| ₹10,000 | ₹6,00,000 | ₹7,13,658 | ₹1,13,658 |
India Post’s own ready-reckoner shows ₹5,000 a month maturing at ₹3,56,830 at 6.7% — the same as this table.
RD vs other monthly savings options
| Option | Return | Returns | Safety | Tax |
|---|---|---|---|---|
| Bank RD | ≈6.1% – 7.25% | Guaranteed | DICGC ₹5 lakh | Slab rate |
| Post Office RD | 6.7% | Guaranteed | Sovereign | Slab rate |
| PPF | 7.1% | Guaranteed | Sovereign | Tax-free |
| Mutual fund SIP | Market-linked | Not guaranteed | Market risk | LTCG/STCG rules |
| Sukanya Samriddhi | 8.2% | Guaranteed | Sovereign | Tax-free |
RD guides & bank pages
Guides & calculator
Bank-wise RD rates
Bandhan Bank RDUp to 7.25%YES Bank RDUp to 7.00%IndusInd Bank RDUp to 7.00%TMB RDUp to 7.00%Dhanlaxmi Bank RDUp to 7.00%Saraswat Bank RDUp to 7.00%South Indian Bank RDUp to 6.80%Federal Bank RDUp to 6.75%Kotak Bank RDUp to 6.70%Karnataka Bank RDUp to 6.65%Bank of India RDUp to 6.60%IOB RDUp to 6.60%DBS Bank RDUp to 6.60%Union Bank RDUp to 6.55%ICICI Bank RDUp to 6.50%IDBI Bank RDUp to 6.50%HDFC Bank RDUp to 6.45%Axis Bank RDUp to 6.45%UCO Bank RDUp to 6.45%SBI RDUp to 6.40%PNB RDUp to 6.40%Bank of Baroda RDUp to 6.30%Central Bank RDUp to 6.25%Canara Bank RDUp to 6.25%Indian Bank RDUp to 6.20%Punjab & Sind Bank RDUp to 5.95%
Frequently asked questions
What is a recurring deposit?
A recurring deposit (RD) is a term deposit where you invest a fixed amount every month for a chosen tenure (usually 6 months to 10 years). Interest is compounded quarterly and you receive the instalments plus interest at maturity.
Which bank offers the highest RD rate?
Among the 26 banks tracked, Bandhan Bank is at the top with 7.25% (2 - <3 years). The Post Office RD pays 6.7% for 5 years with a sovereign guarantee.
How is RD interest calculated?
Each instalment earns interest from the month it is paid, compounded quarterly: Maturity = Σ R × (1 + r/400)^(k/3). ₹5,000 a month for 5 years at 6.7% becomes ₹3,56,830.
Is RD better than FD?
For the same rate, an FD earns more because the full amount is invested from day one. An RD is better when you are saving from monthly income.
What happens if I miss an RD instalment?
Banks charge a small penalty (for example ₹1–₹2 per ₹100 per month at several public banks, ₹1 per ₹100 at the Post Office). Repeated defaults can close the RD.
Is RD interest taxable?
Yes, at your slab rate. TDS of 10% applies when FD + RD interest from one bank crosses ₹50,000 a year (₹1 lakh for seniors).
Can I take a loan against an RD?
Most banks give a loan or overdraft of about 80%–90% of the RD balance; the Post Office allows up to 50% after 12 instalments.
RD rates compiled from banks’ published cards (dates on each bank page) and the Ministry of Finance notification for the Post Office, for comparison only. Confirm before opening an RD.