Best Recurring Deposit (RD) Interest Rates 2024

Recurring Deposits (RDs) serve as a beneficial investment tool, allowing individuals to make regular monthly investments and save money for the long term. With the flexibility to choose the deposit tenure and the minimum monthly payment, RD schemes offer convenience and are often favoured by those aiming to build a rainy-day fund or save money.

In India, most banks provide RD options with highly competitive interest rates ranging from 6% to 9%, subject to market trends at the time of account creation. The tenure of an RD can range from 7 days to 10 years, making it an ideal choice for salaried individuals with a fixed monthly income seeking to invest consistently. In this blog topic, we will explore the best RD interest rates of 2024.

What is a Recurring Deposit?

Recurring Deposit is a financial tool designed to promote saving habits among individuals. It involves a predetermined fixed amount being deducted monthly from either a savings account or a current account.

Upon maturity, investors receive their invested funds along with accumulated interest. Recurring deposit schemes facilitate disciplined investments, offering a convenient and secure way to earn favourable returns on deposited funds.

Check out our blog post to learn more –What Is a Recurring Deposit? How RD Works & Its Features

List of Highest RD Interest Rates in India 2024

Bank RD Interest Rates Senior Citizen RD Interest Rates Minimum Deposit Amount
Freo Up to 8.2% Up to 8.7% ₹1000
State Bank of India Up to 7% Extra 0.5-0.8% ₹100
ICICI Bank Up to 7.1% Up to 7.6% ₹500
HDFC Bank Up to 7.1% Up to 7.75% ₹1000
Axis Bank Up to 7.10% Up to 7.75% ₹500
Bank of Baroda Up to 5.5% Up to 6.5% ₹100
Kotak Mahindra Bank Up to 7.20% Up to 7.70% ₹100


Banks With the Best RD Interest Rates in 2024

Freo Save

Freo Save offers one of the best recurring deposit (RD) interest rates up to 8.2%. And if you’re a senior citizen, we offer the highest RD interest rate at an incredible 8.7%! Don’t miss out on this golden opportunity to earn great returns while being disciplined with your investments. Join Freo Savings today and start saving smart. Your financial future will thank you!

Don’t wait until it’s too late! Secure your financial future with Freo Savings RD today!

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State Bank of India

State Bank of India offers the option to open a Recurring Deposit (RD) account with a minimum deposit of ₹100. As with most of the major RDs, you have the flexibility to select a tenure for your RD account ranging from 12 months to 10 years. For regular citizens, the bank provides interest rates between 6.50% p.a. and 7.00% p.a. on deposits below ₹2 crore. Additionally, senior citizens receive an extra interest rate boost ranging from 0.50% to 0.80% across all tenures.


ICICI Bank is a renowned financial institution known for its wide range of banking services and products. When it comes to Recurring Deposit (RD), ICICI Bank offers competitive interest rates. As of now, the regular RD rates stand at 7.10%, while senior citizens’ RD rates are set at a slightly higher rate of 7.60%. These rates provide an opportunity for individuals to earn interest on their deposited funds over the maturity period.

To open an RD account with ICICI Bank, the minimum deposit amount required is ₹500. This makes it accessible for individuals with varying financial capabilities to start their savings journey. It’s important to note that in case of delayed installment payments, ICICI Bank charges a penalty of ₹ 12 per ₹1000, ensuring adherence to the deposit schedule.


HDFC Bank is one of the leading financial institutions offering a range of services, including Recurring Deposit (RD) accounts. The regular RD rates stand at 7.10%, while senior citizens’ RD Rates are at 7.75%. The minimum deposit amount required to open an RD account with HDFC Bank is ₹1000. It’s important to note that there is a lock-in period of 1 month from the date of account opening, during which the deposited funds cannot be withdrawn. Additionally, in the event of delayed installments, a penalty of 1% may be applicable.

Axis Bank

Axis Bank provides attractive options for individuals looking to save and grow their funds. The regular RD rates offered by Axis Bank stand at 7.10%, while senior citizen’s RD rates are at 7.75%, ensuring higher returns for senior citizens. The minimum deposit amount required to open an RD account with Axis Bank is ₹500, making it accessible for a wide range of customers.

However, it is important to note that partial withdrawals are not permitted on Axis Bank RD accounts. Additionally, in case of late payment, a penalty of ₹10 per ₹1000 per month is applicable. By offering competitive interest rates and maintaining strict withdrawal policies, Axis Bank provides customers with a reliable and rewarding RD investment option.

Bank of Baroda

Bank of Baroda provides customers with appealing interest rates for recurring deposits. The bank offers two types of schemes, namely the recurring deposit and flexible recurring deposit. The rate of return for these deposits varies from 4.65% to 5.50% per annum for the general public, depending on the chosen tenure. The available tenure options for opening a recurring deposit with the Bank of Baroda range from 181 days (6 months) to 10 years, providing flexibility for individuals to select a suitable duration for their investment.

Kotak Mahindra Bank

The regular RD rates provided by the Kotak Mahindra Bank are currently at 7.20%, while senior citizens can avail themselves of a higher rate of 7.70% on their RD investments. The minimum deposit amount required to start an RD account with Kotak Mahindra Bank is ₹100.

It is important to note that in the event of a delay in payment of any installment beyond the grace period of 5 days, penal interest is applicable. The penal interest rate is calculated based on the contracted rate of interest at the time of booking the RD, plus an additional 2% per annum.

Recurring Deposit Interest Calculator

Use the Recurring Deposit calculator below to calculate your returns in a Freo RD.
You can also compare it with any other bank’s returns.

Monthly Investment


Interest rate


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Maturity Amount

Maturity Amount

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 Total Interest on
  Freo Save RD

Learn more about Freo Savings RD returns here:
The values generated by the calculator are indicative. For accurate figures on returns, please use the Freo app.


Is the RD interest rate pre-fixed?

Similar to fixed deposits, the interest rates on Recurring Deposits (RD) are predetermined and vary based on the tenure selected. However, unlike fixed deposits, the interest rate for RD is periodically updated, resulting in varying interest percentages for each monthly installment. These accumulated interest amounts are compounded at the end of each quarter, allowing for potential growth over time.

What is the minimum tenure on a recurring deposit account?

The minimum tenure for bank accounts can vary depending on the specific bank, but in general, it is typically set at 6 months.

Can I pay more than one installment at a time?

Certainly, it is possible to make additional installments one at a time. However, it is important to note that these additional payments will not accrue any interest.

Are RD interest rates compounded quarterly?

RD (Recurring Deposit) interest rates are indeed compounded on a quarterly basis.

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