Top Recurring Deposit Schemes 2025
Recurring Deposit (RD) Schemes are a type of term deposit offered by banks and financial institutions that allow individuals to deposit a fixed amount every month into their RD account and earn interest at a predetermined rate. They are ideal for people who want to cultivate a saving habit and receive a lump sum at maturity.
Every functioning bank in India offer their customers to open a recurring deposit account. You can deposit a certain amount for a set tenure following which you will earn interest on your deposits.
The interest rate offered will differ from bank to bank and it is important to check the rates offered before opening an RD account with the lender.
We will mention below some of the top RD schemes in India.
SBI Recurring Deposit Interest Rates
Interest rate offered:
Tenure | Interest Rates (p.a.) for Public | Interest Rates (p.a.) for Senior Citizens |
1 year to less than 2 years | 6.80% | 7.30% |
2 years to less than 3 years | 7.00% | 7.50% |
3 years to less than 5 years | 6.75% | 7.25% |
5 years to 10 years | 6.50% | 7.50% |
Other SBI RD Scheme Details
Minimum Deposit Amount | Rs. 100 monthly |
Tenure | 1 year to 10 years |
ICICI Recurring Deposit Interest Rates
Interest rate offered:
Tenure | Interest Rates (p.a.) for Public | Interest Rates (p.a.) for Senior Citizens |
12 months | 6.70% | 7.20% |
15 months | 7.25% | 7.80% |
18 months | 7.25% | 7.75% |
21 months | 7.25% | 7.75% |
24 months | 7.25% | 7.75% |
Above 3 years upto 5 years | 7.00% | 7.50% |
Above 5 years upto 10 years | 6.90% | 7.40% |
ICICI RD Scheme Details
Minimum Deposit Amount | Rs. 500 monthly |
Tenure | 6 months onward |
Canara Bank Recurring Deposit Interest Rates
Interest rate offered:
Tenure | Interest Rates (p.a.) for Public | Interest Rates (p.a.) for Senior Citizens |
180 days to less than 269 days | 6.15% | 6.65% |
1 year | 6.85% | 7.35% |
1 year to less than 2 years | 6.85% | 7.35% |
2 years and above to less than 3 years | 6.85% | 7.35% |
3 years to 5 years | 6.80% | 7.30% |
Canara Bank RD Scheme Details
Minimum Deposit Amount | Rs. 50 monthly |
Tenure | 6 months - 10 years |
IndusInd Bank Recurring Deposit Interest Rates
Interest rate offered:
Tenure | Interest Rates (p.a.) for Public | Interest Rates (p.a.) for Senior Citizens |
9 months | 6.35 | 6.85 |
12 months | 7.75 | 8.25 |
15 months | 7.75 | 8.25 |
18 months | 7.75 | 8.25 |
21 months | 7.75 | 8.25 |
24 months | 7.75 | 8.25 |
27 months | 7.25 | 7.75 |
30 months | 7.25 | 7.75 |
33 months | 7.25 | 7.75 |
3 years to below more than 5 years | 7.25 | 7.75 |
More than 5 years | 7.00 | 7.50 |
IndusInd RD Scheme Details
Minimum Deposit Amount | Rs. 500 monthly |
Tenure | Up to 10 years |
Karur Vysya Bank Recurring Deposit Interest Rates
Interest rate offered:
Deposit Tenure | For Deposits Below Rs.3 crore |
181 days to 270 days | 6.25% p.a. |
271 days to less than 1 year | 6.50% p.a. |
1 year to less than 2 years | 7.00% p.a. |
2 years to less than 3 years | 7.00% p.a. |
3 years to less than 5 years | 7.00% p.a. |
5 years and more | 6.25% p.a. |
Karur Vysya RD Scheme Details
Minimum Deposit Amount | Rs. 100 monthly |
Tenure | Up to 10 years |
These are some of the banks which offers interesting rates of interest for different tenure. You must however properly compare the various interest rates offered by banks in India and choose the one which you feel will be suitable for you.
FAQs on Top Recurring Deposit Schemes 2025
- What is the importance of checking Bank RD interest rate before opening an RD account?
It is vital to check the RD interest rate for various banks before opening an RD account as the rates vary for different banks and you must research properly to earn more interest by investing in a suitable RD account.
- What happens when the RD matures?
When the RD matures, the total amount including the principal amount and the interest is transferred to the linked savings account on the last day of the installment.
- Is the RD interest rate pre-fixed?
Yes, the RD interest rates are pre-fixed and vary depending on the tenure selected. Therefore, the interest calculated will also vary as the percentage of interest is different for different tenures and is compounded at the end of the quarter.
- What happens to the account if installments are not skipped or not paid on time?
If RD installment skipped for one month the account remains active. But the bank closes the account in case multiple installments have been missed by the depositor.
- What is the nomination facility in an RD account?
As per the nomination facility in an RD account, the nominee gets the RD amount in case anything happens to the accountholder. The bank allows the accountholder to nominate only one candidate per RD account.
- Is there any penalty charged by the bank for missed payments on RDs?
The penalty for missed payments on RDs depends on the bank and usually banks do not charge any penalty. Rather the bank automatically closes the RD account if the monthly installments are not paid for a few consecutive months.
- Are RD interest rates compounded quarterly?
Yes, the RD interest rates are compounded on a quarterly basis.
- Can I pay more than one installment at a time?
Can I pay more than one installment at a time?
- Is the interest earned on RDs taxable?
Yes, as per the Income Tax Act the interest earned on RDs is taxable as it gets added to the taxable income of the depositor and is taxed at the applicable tax slab rate.
- Can I withdraw my RD prematurely and avail myself of the interest rate as promised?
Yes, you can withdraw your RD prematurely but will earn less interest on the withdrawn amount depending on certain conditions and penalties as per the bank policy.
- How often do banks change their RD interest rates?
Depending on various factors such as the liquidity needs, RBI’s monetary policy, and market conditions, the bank changes the RD interest rates periodically.
- How is the interest rate on Recurring Deposit calculated?
The interest rate is fixed while opening the RD account and is calculated on a quarterly basis. The interest is calculated on the amount deposited each month and is added to te principal amount.
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