Recurring Deposit
Recurring Deposit interest rates in India depend on the bank, deposit tenure, and whether the investor is a regular or senior citizen. To help you maximise your returns, we’ve compiled the latest RD interest rates offered by banks across India for both categories.
Disclaimer: RD interest rates are subject to change; please confirm the latest rates with the respective bank.
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 2026
Bank | RD Interest Rates | Senior Citizen RD Interest Rates | Minimum Deposit Amount |
|---|---|---|---|
Freo | 3.50% to 7.25% | 4.00% to 7.75% | ₹1000 |
State Bank of India | 6.30% - 6.55% | 6.80% - 7.05% | ₹100 |
ICICI Bank | 4.50% - 6.50% | 5.00% - 7.00% | ₹500 |
HDFC Bank | 2.75% - 6.45% | 3.25% - 6.95% | ₹1000 |
Axis Bank | 5.50% - 6.45% | 6.00% - 7.20% | ₹500 |
Bank of Baroda | 4.50% - 6.50% | 5.00% - 7.50% | ₹100 |
Kotak Mahindra Bank | 5.50% - 6.70% | 6.00% - 7.20% | ₹100 |
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FAQs
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.
Naina Rajgopalan
Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She's been money-wise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo, a neobank that offers flexible and customised financial products, along with benefits such as insurance on balance, safe & secure banking, and so on, Naina stays updated with the latest of what happens in the banking and fintech industries. She has taken upon herself to share her knowledge with readers across all walks of life to help them manage their finances and budgets better, so they can make better decisions while spending, borrowing, investing and saving.
