Compare RD interest rates across major banks in India. Find the best recurring deposit rates from SBI, HDFC, ICICI, small finance banks, and post offices.
Looking for the best RD rates? Interest rates vary significantly across banks—choosing wisely can earn you thousands more over your deposit tenure.
Here's a comprehensive comparison of RD rates across different banks and institutions.
Current RD Interest Rates (2024)
Public Sector Banks
| Bank |
General Rate |
Senior Citizen |
Tenure for Best Rate |
| SBI |
6.50% |
7.00% |
1-2 years |
| Bank of Baroda |
6.50% |
7.00% |
1-2 years |
| Punjab National Bank |
6.50% |
7.00% |
1-2 years |
| Canara Bank |
6.50% |
7.00% |
1-2 years |
| Union Bank |
6.50% |
7.00% |
1-2 years |
| Indian Bank |
6.50% |
7.00% |
1-2 years |
| Bank of India |
6.30% |
6.80% |
1-2 years |
PSU banks average: 6.30-6.50%
Calculate your RD returns: Use our RD Calculator.
Private Sector Banks
| Bank |
General Rate |
Senior Citizen |
Tenure for Best Rate |
| HDFC Bank |
7.00% |
7.50% |
15 months |
| ICICI Bank |
7.00% |
7.50% |
15-18 months |
| Axis Bank |
7.00% |
7.75% |
1-2 years |
| Kotak Mahindra |
6.75% |
7.25% |
1-2 years |
| IndusInd Bank |
7.50% |
8.00% |
1-2 years |
| Yes Bank |
7.25% |
7.75% |
1-2 years |
| IDFC First Bank |
7.50% |
8.00% |
1-2 years |
| RBL Bank |
7.50% |
8.00% |
1-2 years |
Private banks average: 7.00-7.50%
Small Finance Banks
| Bank |
General Rate |
Senior Citizen |
Tenure for Best Rate |
| AU Small Finance |
7.50% |
8.00% |
1-2 years |
| Equitas Small Finance |
8.00% |
8.50% |
1-2 years |
| Ujjivan Small Finance |
8.25% |
8.75% |
1-2 years |
| Suryoday Small Finance |
8.50% |
9.00% |
1-2 years |
| Jana Small Finance |
8.00% |
8.50% |
1-2 years |
| Fincare Small Finance |
8.00% |
8.50% |
1-2 years |
| ESAF Small Finance |
8.00% |
8.50% |
1-2 years |
| Unity Small Finance |
8.50% |
9.00% |
1-2 years |
Small finance banks average: 8.00-8.50%
Post Office RD
| Scheme |
Interest Rate |
Tenure |
Special Feature |
| Post Office RD |
6.7% |
5 years fixed |
Government guaranteed |
Post Office RD offers guaranteed returns but lower rate than private banks.
Rate Comparison Summary
| Bank Type |
Rate Range |
Risk Level |
Best For |
| PSU Banks |
6.30-6.50% |
Lowest |
Risk-averse investors |
| Private Banks |
7.00-7.50% |
Low |
Balance of rate and safety |
| Small Finance Banks |
8.00-8.50% |
Moderate |
Higher returns |
| Post Office |
6.7% |
Lowest |
Government guarantee |
How to Choose the Best RD
Factor 1: Interest Rate vs Safety
| Priority |
Best Choice |
Why |
| Maximum safety |
SBI, Post Office |
Government backing |
| Good rate + safety |
HDFC, ICICI |
Large private banks |
| Maximum rate |
Small Finance Banks |
1-2% higher rates |
Factor 2: Amount Consideration
| RD Amount |
Recommended Bank Type |
| < ₹50,000 |
Any (difference minimal) |
| ₹50,000 - ₹2 L |
Private banks (better rate) |
| > ₹2 L |
Split between SFBs (stay within ₹5 L insurance) |
DICGC insurance covers ₹5 lakh per bank. For larger amounts, diversify across banks.
Factor 3: Tenure Matching
| Your Goal Tenure |
Best Rate Tenure |
Action |
| 6 months |
6-9 months |
Match exactly |
| 1 year |
12-15 months |
Sweet spot for most banks |
| 2-3 years |
1-2 years |
Rates often drop for longer tenure |
| 5 years |
5 years |
Only Post Office or tax-saver |
Most banks offer peak rates for 1-2 year tenure.
Interest Calculation Example
₹10,000/month RD for 2 Years
| Bank Type |
Rate |
Maturity Amount |
Interest Earned |
| PSU Bank |
6.50% |
₹2,56,600 |
₹16,600 |
| Private Bank |
7.25% |
₹2,58,500 |
₹18,500 |
| Small Finance Bank |
8.25% |
₹2,61,100 |
₹21,100 |
Difference: ₹4,500 between PSU and SFB over 2 years.
₹25,000/month RD for 3 Years
| Bank Type |
Rate |
Maturity Amount |
Interest Earned |
| PSU Bank |
6.50% |
₹10,10,000 |
₹1,10,000 |
| Private Bank |
7.25% |
₹10,25,000 |
₹1,25,000 |
| Small Finance Bank |
8.25% |
₹10,45,000 |
₹1,45,000 |
Difference: ₹35,000 between PSU and SFB over 3 years.
Senior Citizen Rates
Additional Benefits
| Bank Type |
Extra Rate for Seniors |
| PSU Banks |
+0.50% |
| Private Banks |
+0.50-0.75% |
| Small Finance Banks |
+0.50% |
| Post Office |
No extra (same for all) |
Best Senior Citizen RD Rates
| Bank |
Senior Rate |
Tenure |
| Unity Small Finance |
9.00% |
1-2 years |
| Suryoday Small Finance |
9.00% |
1-2 years |
| Ujjivan Small Finance |
8.75% |
1-2 years |
| IndusInd Bank |
8.00% |
1-2 years |
| IDFC First Bank |
8.00% |
1-2 years |
Seniors can earn 1.5-2% more than general rates.
Small Finance Banks: Worth the Risk?
Safety Factors
| Factor |
Details |
| RBI regulated |
Same regulations as other banks |
| DICGC insured |
₹5 lakh coverage per depositor |
| Capital requirements |
Similar to scheduled banks |
| NPA monitoring |
RBI supervision |
Risk Considerations
| Risk |
Mitigation |
| Bank failure |
DICGC covers ₹5 L |
| Operational issues |
Choose larger SFBs (AU, Equitas, Ujjivan) |
| Branch availability |
Check local presence |
Verdict: Small finance banks are reasonably safe for amounts up to ₹5 lakh.
Tax Implications by Rate
Post-Tax Returns (30% Bracket)
| Bank Type |
Pre-tax Rate |
Post-tax Rate |
Effective Return |
| PSU Bank |
6.50% |
4.55% |
Below inflation |
| Private Bank |
7.25% |
5.08% |
Just above inflation |
| Small Finance Bank |
8.25% |
5.78% |
Decent real return |
Higher rates matter more for high tax bracket investors.
TDS Considerations
| Interest Earned |
TDS Applicability |
| Up to ₹40,000/year |
No TDS (₹50K for seniors) |
| Above threshold |
10% TDS deducted |
Read more: RD Interest and TDS Rules Explained
Bank-Specific Features
SBI
| Feature |
Details |
| Rate |
6.50% (7.00% seniors) |
| Min amount |
₹100/month |
| Tenure |
1-10 years |
| Online RD |
Available via YONO |
| Auto-renewal |
Yes |
HDFC Bank
| Feature |
Details |
| Rate |
7.00% (7.50% seniors) |
| Min amount |
₹1,000/month |
| Tenure |
6 months - 10 years |
| Online RD |
NetBanking, app |
| Sweep-in facility |
Available |
ICICI Bank
| Feature |
Details |
| Rate |
7.00% (7.50% seniors) |
| Min amount |
₹500/month |
| Tenure |
6 months - 10 years |
| Online RD |
iMobile, NetBanking |
| Flexi RD |
Variable amounts allowed |
AU Small Finance Bank
| Feature |
Details |
| Rate |
7.50% (8.00% seniors) |
| Min amount |
₹100/month |
| Tenure |
6 months - 10 years |
| Online RD |
AU 0101 app |
| Penalty |
1% for premature closure |
RD Comparison with FD
Same Bank, Different Products
| Product |
SBI Rate |
HDFC Rate |
ICICI Rate |
| RD (1 year) |
6.50% |
7.00% |
7.00% |
| FD (1 year) |
6.80% |
7.10% |
7.10% |
| Difference |
0.30% |
0.10% |
0.10% |
FD rates are typically 0.1-0.3% higher than RD for same tenure.
Compare options: Use our FD Calculator to compare.
Strategies for Maximum Returns
Strategy 1: Ladder Across Banks
| Bank |
Monthly Amount |
Rate |
Purpose |
| SBI |
₹5,000 |
6.50% |
Safe base |
| HDFC |
₹5,000 |
7.00% |
Good balance |
| Ujjivan SFB |
₹5,000 |
8.25% |
Higher returns |
Average rate: 7.25% with diversified risk.
Strategy 2: Tenure Optimization
| Tenure |
Bank Choice |
Rate |
| 6 months |
IndusInd Bank |
7.25% |
| 1 year |
Ujjivan SFB |
8.25% |
| 2 years |
Unity SFB |
8.50% |
| 5 years |
Post Office |
6.70% |
Match tenure to goal for best rates.
Strategy 3: Senior Citizen Advantage
| Strategy |
Implementation |
| Joint account |
Add senior parent as first holder |
| Rate benefit |
Get 0.5-0.75% extra |
| Tax benefit |
Higher TDS threshold (₹50K) |
Legal way to get senior rates if family member qualifies.
When to Lock RD Rates
Rate Cycle Consideration
| Rate Environment |
Action |
| Rates rising |
Short tenure (6-12 months), renew at higher |
| Rates falling |
Lock longer tenure (2-3 years) |
| Rates stable |
Match to goal tenure |
Current Environment (2024)
| Indicator |
Status |
| RBI repo rate |
Stable at 6.5% |
| Inflation |
Moderating (5-6%) |
| Rate outlook |
Stable to slightly lower |
Current advice: Good time to lock 1-2 year RDs at current rates.
Online vs Branch RD
Digital RD Benefits
| Feature |
Online |
Branch |
| Opening process |
5 minutes |
30+ minutes |
| Rate difference |
Sometimes 0.1% higher |
Standard rate |
| Missed payment |
Auto-debit prevents |
Manual risk |
| Premature closure |
Easy online |
Branch visit |
| Statements |
Instant download |
Request needed |
Recommendation: Online RD for convenience and sometimes better rates.
Common Mistakes to Avoid
1. Chasing Highest Rate Blindly
| Risk |
What Happens |
| Unknown bank |
Higher default risk |
| Too much in one bank |
Exceeds ₹5 L insurance |
Solution: Limit to established banks, diversify above ₹5 L.
2. Ignoring Tenure Mismatch
| Your Need |
Wrong Choice |
Right Choice |
| 8 months |
1-year RD |
9-month RD |
| 18 months |
2-year RD |
18-month RD |
Premature closure penalty is 1-2%. Match tenure to avoid.
3. Not Comparing Post-Tax Returns
| Bank |
Pre-tax |
Post-tax (30% slab) |
| PSU at 6.5% |
6.50% |
4.55% |
| SFB at 8.5% |
8.50% |
5.95% |
| Difference |
2.00% |
1.40% |
Gap narrows after tax. May not be worth the perceived risk for some.
Conclusion
| Investor Type |
Best Choice |
Expected Rate |
| Risk-averse |
SBI, Post Office |
6.5-6.7% |
| Balanced |
HDFC, ICICI, Axis |
7.0-7.5% |
| Return-focused |
Ujjivan, Unity SFB |
8.0-8.5% |
| Senior citizen |
Unity/Suryoday SFB |
8.5-9.0% |
Key takeaways:
- Small finance banks offer 1.5-2% higher rates than PSU banks
- Private banks offer good balance of rate and safety
- Diversify amounts above ₹5 lakh across banks
- Senior citizens should leverage extra rate benefits
- Match RD tenure to your actual goal timeline
- Online RDs often have better rates and convenience
The "best" RD depends on your risk tolerance and amount. For most people, large private banks (HDFC, ICICI) offer the best balance of competitive rates and safety.
Calculate your RD returns: Use our RD Calculator to compare how different rates affect your maturity amount.
