Best Recurring Deposit Rates for Senior Citizens

Senior Citizens can avail special benefits on recurring deposit schemes, such as an additional interest rate of 0.25% to 0.75% over and above the regular interest rate offered by most banks.

Once the amount of installment and tenure is fixed, it cannot be changed once the account is opened. Interest on the recurring deposit scheme is compounded on a quarterly basis.

Updated On - 05 Sep 2025
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Several Banks offer Recurring Deposit for Senior Citizens for a tenure ranging from a minimum period of 6 months up to a maximum period of 10 Years. The tenure can be chosen by the depositor, in multiples of 3 months.

The interest rate applicable on the recurring deposit is similar to that applicable on the Fixed Deposit, for a similar tenure. Financial institutions like Bank of India offers 0.5% additional interest rate on recurring deposit, compared to the fixed deposit available for the same tenure.

Usually, the minimum recurring deposit amount can be a minimum of Rs 100 per month. However, this varies from bank to bank.

Defaulting on deposits can lead to penalty charges on your recurring deposit account and if there is defaulted payment of multiple installments, the bank at its discretion, can close the recurring deposit account and reimburse the investment to the depositor.

Senior Citizen Recurring Deposit

Several banks also offers loans against recurring deposit or offer an overdraft facility against the amount that is available in an individual’s Recurring Deposit account. In this case, the rate of interest applicable will be 0.5% - 1% more than the interest applicable on recurring deposit.

Another factor is that, senior citizen recurring deposit accounts are also subject to a penalty fee if they make a premature withdrawal from the account.

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Senior Citizen Recurring Deposit Interest Rate

Senior Citizen RD Interest Rates: Up to 3-Year Tenors

Banks 

ROI for Tenure 1 Year 

ROI for Tenure 3 Years 

Axis Bank 

8.40% 

8.25% 

Bank of Baroda 

5.80% 

5.75% 

Bandhan Bank 

5.25% 

7.75% 

Bank of India 

7.15% 

7.40% 

Catholic Syrian Bank 

5.00% 

7.10% 

City Union Bank 

6.00% 

6.00% 

Central Bank of India 

5.50% 

5.50% 

Corporation Bank 

6.40% 

6.30% 

DCB Bank 

7.00% 

7.45% 

Dhanalakshmi Bank 

6.50% 

6.50% 

HDFC Bank 

7.10% 

7.50% 

IDFC Bank 

7.00% 

7.50% 

IDBI Bank 

7.30% 

7.00% 

Indus Ind Bank 

8.25% 

8.25% 

Karur Vysya Bank 

7.40% 

6.90% 

Karnataka Bank 

7.35% 

6.80% 

Senior Citizen RD Interest Rates :5-Years and Above

Banks 

ROI for Tenure 4 Years 

ROI for Tenure 5+ Years 

Axis Bank 

8.25% 

8.00% 

Bank of Baroda 

5.75% 

5.75% 

Bandhan Bank 

7.75% 

6.60% 

Bank of India 

7.40% 

6.90% 

Catholic Syrian Bank 

5.75% 

6.00% 

City Union Bank 

6.00% 

5.25%

Central Bank of India 

5.50% 

5.50% 

Corporation Bank 

6.30% 

6.30% 

DCB Bank 

7.45% 

7.45% 

Dhanalakshmi Bank 

6.60% 

6.60% 

HDFC Bank 

7.50% 

7.75% 

IDFC Bank 

7.50% 

7.50% 

IDBI Bank 

7.00% 

5.30% 

Indus Ind Bank 

8.25% 

8.00% 

Karur Vysya Bank 

6.90% 

6.65% 

Karnataka Bank 

6.80% 

6.20% 

FAQs on Recurring Deposit for Senior Citizens

  • What is the TDS for senior citizens who have invested in Recurring Deposits?

    Senior citizens will be charged 10% on the interest earned from their Recurring Deposits if the interest exceeds Rs.50,000. 

  • What is the minimum amount a senior citizen can invest in a Recurring Deposit?

    The minimum amount a senior citizen can invest in a Recurring Deposit varies from Bank to Bank.  

  • Are senior citizens subject to Recurring Deposit interest taxation?

    Senior citizens have to pay tax only if the interest earned on Recurring Deposits exceeds Rs.50,000.  

  • Are interest rates on RD accounts higher for senior citizens?

    Yes. Senior citizens receive higher interest rates from the bank.

  • Can a senior citizen change the instalment amount once they open an RD account?

    No, a senior citizen cannot change the instalment amount once they open an RD account.

  • Will senior citizens be penalized if they withdraw money from their RD prematurely?

    Yes, senior citizens will be penalized if they withdraw money from their RD prematurely. 

  • Is it possible for a senior citizen to change the tenure after the RD account has been opened?

    No, the tenure for an RD is fixed. So, it is not possible to change the tenure once the RD account has been opened.  

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