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Recurring Deposit in India
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The best option for investments for people who are risk averse is the recurring deposits. In an RD scheme, investors are required to make deposits of a fixed amount every month for a fixed tenure. Recurring deposits can help people in earning more money through better and safe returns.

Small Savings Interest Changes Withdrawn Immediately

On March 31st 2021, the government had notified about a cut of 40 -110 basis points (100 basis points/bps = 1% interest) on GoI small savings schemes, including Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra, Recurring Deposit, and Sukanya Samriddhi Yojana (SSY). However, the changes were withdrawn on April 1 2021, claiming them to be an ‘oversight’ - this means the existing interest rates from the previous quarters will prevail. If not rolled back, the move would have seen the PPF interest rate at the biggest low since 1974. It is yet to be seen if the change will be brought back in coming quarters.

Recurring Deposit Interest Rates Comparison

How is the interest rate on the recurring deposit calculated?

The rate of interest on a recurring deposit is calculated based on many parameters like the money that is deposited each month, the tenure chosen by you. The interest rates for the RD is the highest for a tenure of 15 to 24 months. The higher interest rates are offered for senior citizen and women. You can also use the online Recurring deposit Interest Rate calculator to find out the interest rate that you will be accumulating for a specific principal and tenure.

Highest RD Interest Rates

Here's a list of some of the banks which provide the highest interest on the Recurring Deposit schemes:

  • Deutsche Bank and Nainital Bank offer an interest rate of 7.25% and 7.50% respectively for an RD of over five years of tenure. For a tenure of less than five years, the Nainital Bank and Deutsche Bank provide interest rates of 7.50% and 7.75%
  • For an RD scheme within two years tenure. An interest rate of 7.90% is offered by Nainital Bank  
  • For tenure of 3-4 years, the best interest rates are offered by Nainital Bank (7.75%), Lakshmi Vilas Bank (7%) and Karur Vysya Bank (7%). The Post Office provides an interest rate of 7.10% on Recurring Deposits.

What are the Best Recurring schemes in India?

Here is a list of banks that provide the most attractive interest rates on the Recurring Deposits

Allahabad Bank

This bank offers an interest rate of 6.5%-6.6% for the tenure of 180 days to 2 years for Recurring Deposits


ICICI has a very flexible RD scheme known as the iFlexi RD Plan. The customer will incur no penalties for his/her delayed payments and the maximum interest rate offered for the iFlexi RD is 7.10% with an option for tenure period ranging from 13 months-24 months


This bank offers a maximum interest rate of 7% on the Recurring Deposits and the tenure varies from 12-120 months. The minimum amount that can be invested in the HDFC RD Scheme is 1000

J&K Bank

J&K Bank provides an attractive interest rate of 6.75% to its customers for the tenure of 1-4 years for RD schemes. The bank offers an interest of 6.75% for five years and above.

Axis Bank

The RD Schemes of Axis Bank gives the customer an interest rate of 7% for a tenure of 1-2 years. The minimum amount that must be deposited by the customer for Axis Bank RD Scheme is 1000 rupees

What are the Interest Rates Offered by Banks for Recurring Deposits?

Here is the list of the interest rates that are offered by different banks for the recurring deposit schemes. The interest rates for RD below have been grouped under the bank and tenure for which the interest rate is applicable. These interest rates fluctuate very frequently, if you wish to open a Recurring Deposit Account, then you must cross-check the interest rates offered by the bank.