Recurring Deposit

Recurring Deposits in Bank:

Best rates: Recurring Deposit interest rate Comparison, 2023(Source: BankBazaar)

                                    Recurring Deposit Interest Rates Bank wise (For an amount up to Rs.2 crore)

BanksTenures (p.a.) 
 1 year2 years3 years4 years5 yearsMore than 5 years
Andhra Bank (Union Bank) RD Interest Rates6.30%6.60%6.70%6.70%6.70%6.70%
Allahabad Bank (Indian Bank) RD Interest Rates6.10%6.30%6.50%6.40%6.40%6.30%
Axis Bank RD Interest Rates5.50%6.50%6.50%6.50%6.50%6.50%
Bandhan Bank RD Interest Rates6.25%6.25%6.25%6.25%6.25%6.25%
BOM RD Interest Rates6.00%6.00%6.00%5.75%5.75%5.75%
BOB RD Interest Rates5.30%5.45%5.50%5.50%5.50%5.50%
BOI RD Interest Rates5.30%5.40%5.35%5.35%5.35%5.35%
Canara Bank RD Interest Rates5.50%5.60%5.75%5.75%5.75%5.75%
Central Bank of India RD Interest Rates5.45%5.50%5.50%5.50%5.60%5.60%
City Union Bank RD Interest Rates6.25%7.00%7.00%6.90%6.90%6.90%
Corporation Bank RD Interest Rates6.30%6.60%6.70%6.70%6.70%6.70%
Citi Bank RD Interest Rates6.75%3.00%NANANANA
DBS Bank RD Interest Rates6.00%6.50%6.25%6.25%6.25%6.25%
Deutsche Bank RD Interest Rates6.25%6.75%7.00%7.25%7.00%NA
Dhanlaxmi Bank RD Interest Rates5.60%5.60%6.00%6.10%6.10%6.10%
Federal Bank RD Interest Rates5.60%5.75%6.00%6.00%6.00%6.00%
HDFC Bank RD Interest Rates6.10%6.50%6.50%6.50%6.50%6.25%
Indian Overseas Bank RD Interest Rates5.70%5.70%5.85%5.85%5.85%5.85%
ICICI Bank RD Interest Rates6.10%6.40%6.50%6.60%6.60%6.50%
IDBI Bank RD Interest Rates6.25%6.25%6.25%6.10%6.10%4.80% to 6.10%
Indian Bank RD Interest Rates6.10%6.50%6.40%6.40%6.40%6.30%
IndusInd Bank RD Interest Rates6.25%7.00%6.75%6.75%6.75%6.25%
J&K Bank RD Interest Rates6.35%6.25%6.10%6.10%6.10%6.10%
Karnataka Bank RD Interest Rates6.40%6.40%5.75%5.75%5.75%5.80%
Karur Vysya Bank RD Interest Rates6.50%6.50%7.00%6.25%6.25%6.25%
Kotak Mahindra RD Interest Rates6.25%6.40%6.30%6.25%6.20%6.20%
Laxmi Vilas Bank RD Interest Rates6.00%6.50%6.25%6.25%6.25%6.25%
Oriental Bank of Commerce RD Interest Rates5.50%5.50%5.60%5.75%5.75%5.65%
PNB RD Interest Rates6.30%6.30%6.25%6.10%6.10%6.10%
Punjab & Sind Bank RD Interest Rates6.10%6.10%6.25%6.10%6.10%6.10%
Saraswat Bank RD Interest Rates5.50%6.25%6.40%6.25%6.25%6.35%
South Indian Bank RD Interest Rates6.40%6.40%5.90%5.90%6.00%6.00%
SBI RD Interest Rates5.45%5.50%6.10%6.10%6.10%6.10%
Syndicate Bank RD Interest Rates5.50%5.60%5.75%5.75%5.75%5.75%
TMB RD Interest Rates6.30%6.50%6.00%6.00%6.00%6.00%
UCO Bank RD Interest Rates5.75%5.75%5.60%5.60%5.60%5.60%
Union Bank RD Interest Rates6.30%6.60%6.70%6.70%6.70%6.70%
United Bank RD Interest Rates5.50%5.50%5.60%5.75%5.75%5.65%
Yes Bank RD Interest Rates6.50%6.75%6.75%6.75%6.75%6.75%
Post office (5 years)5.50%5.70%5.80 %NA6.7 %NA


Recurring Deposit [RD] is one of the Unique Term deposits offered by banks to its customers, making customers regularly invest a small amount from their incomes to deposit into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.

In case of money withdrawn from the RD in the bank account before maturity?

Normally banks don’t allow premature and mid-term withdrawals in RD’s.

Customers need to pay a penalty for closing the RD account before the maturity period is completed, for premature withdrawal of the RD, the amount differs from bank to bank.

Difference between Recurring Deposit and Fixed Deposit:

  • RD allows customers to make regular deposits and earn decent returns on their investment after the maturity period but in FD the deposit is made using the lump sum amount.
  • In RD the interest on the amount is mostly compounded quarterly but in FD the interest amount can be paid quarterly, half-yearly, annually, or on maturity.

Why Invest in RD?

Features of Recurring Deposit account:

  • Basically, FDs are rigid, and not ideal for the short term the same as investing in mutual funds for the long term to get high returns but Recurring Deposit is an ideal investment cum savings option for the customer as there’s no market risk involved in it and assumed return is guaranteed.
  • There are no such minimum age limits to open an RD account even Minors can open an RD account but under the guardianship of their parents.
  • Senior citizens usually get 0.5% more interest rate compared to other investors.
  • The monthly saving amount can be as low as 500rs per month.

Almost all the banks in India offer Recurring Deposit Accounts with a term as per their needs.

RD’s and FDs have fixed interest rates fixed by the bank while starting the deposit account and cannot be changed during the tenure, unlike mutual funds whose amount changes with market movement like Equity fundsBalanced funds, etc.

On maturity of RD’s, the individual will be paid a lumpsum amount which includes regular, periodic investments and the interest earned on them.

Recurring deposit calculation formula online:

M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )


M = Maturity Value

R = Monthly Installment

n = Number of quarters

I = Rate of interest/400

E.g.: Let’s say you deposit Rs. 5,000 per month for a year with an interest rate of 9.00% on a Recurring despot account.

i = 9.00/400

n= compounding frequency (since it is quarterly, it will be 4)

M: ₹ 62,984 with the interest earned of ₹ 2,984.

Check the returns online with the help of a calculator of Recurring Deposits:

Bank RD Calculator Investment Calculator

RD Calculator Excel Sheet Download

Read more at knowandask:

Bank FD [Fixed Deposit].

Amit Singh Rawat_Knowandask

Amit Singh Rawat: Owner/ Founder of Knowandask a Digital Learning platform to educate yourself learn spread knowledge and share knowledge.

Leave a Reply

Your email address will not be published. Required fields are marked *