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Recurring deposit interest rate in July 2026: SBI, Post Office, HDFC, ICICI, Axis, Kotak compared
6 min read | Updated on July 06, 2026, 17:42 IST
SUMMARY
RDs continue to appeal to risk-averse individuals who do not have a lump sum to invest and are looking for guaranteed returns.
Interest on a RD is calculated from the date the contribution is made. | Image: Shutterstock
Recurring deposits (RDs) remain a preferred choice for many conservative savers seeking a disciplined yet less risky way of saving their hard-earned money. Even though retail investing has evolved, RDs continue to appeal to risk-averse individuals who do not have a lump sum to invest and are looking for guaranteed returns.
In recurring deposits, account holders make fixed monthly contributions for a specified tenure and, in return, earn interest similar to that offered on fixed deposits. However, unlike fixed deposits, recurring deposits do not require a lump-sum investment. Here, we compare the interest rates offered on RDs by banks and the Post Office.
Post Office RD or National Savings Recurring Deposit (RD) can be opened at a Post Office with a minimum monthly deposit of ₹100. The current rate of interest on Post Office RD is 6.7% per annum. Also, individuals building savings through the scheme are allowed to make advance deposits for any period up to 5 years.
SBI has not listed its RD interest rate separately on its website. Interest rates at the state-run bank on the RD is the same as the FD rate of the corresponding tenure. Accordingly, RDs at SBI provide interest rates in the range of 6.25-6.4% per annum to general citizens. Senior citizens, on the other hand, can earn the highest interest rate of 6.9% on RDs of 2 years tenure.
Minimum term for the RD deposit is 1 year while the maximum is 10 years. Minimum monthly deposit amount at the leading bank is ₹100.
On an RD with ICICI Bank, general customers can get the highest return of up to 6.5% per annum. On the other hand, senior citizens for an RD tenure of more than 3 years and up to 5 years can earn 7.1% return per annum.
To open a Recurring Deposit with ICICI Bank, investors need to start with a minimum monthly deposit of ₹500.
RD rates at the lender are in force from December 29, 2025.
| Maturity Period | Interest Rate (p.a.) | Senior Citizen Rate (p.a.) |
|---|---|---|
| Up to 6 months | 4.50% | 5.00% |
| Above 6 months to 9 months | 5.50% | 6.00% |
| Above 9 months to 15 months | 6.25% | 6.75% |
| Above 15 months to 2 years | 6.30% | 6.80% |
| Above 2 years to 3 years | 6.45% | 6.95% |
| Above 3 years to 5 years | 6.50% | 7.10% |
| Above 5 years to 10 years | 6.50% | 7.00% |
Across tenure between 39 months -54 months, senior citizens can get the highest interest rate on RD of 7% per annum at HDFC Bank. Meanwhile, general customers can get the highest rate of 6.5% p.a.
| Tenure | Interest Rate (p.a.) | Senior Citizen Rate (p.a.) |
|---|---|---|
| 6 Months | 4.25% | 4.75% |
| 9 Months | 5.50% | 6.00% |
| 12 Months | 6.25% | 6.75% |
| 15 Months | 6.35% | 6.85% |
| 18 Months | 6.45% | 6.95% |
| 21 Months | 6.45% | 6.95% |
| 24 Months | 6.45% | 6.95% |
| 27 Months | 6.45% | 6.95% |
| 30 Months | 6.45% | 6.95% |
| 33 Months | 6.45% | 6.95% |
| 36 Months | 6.45% | 6.95% |
| 39 Months | 6.50% | 7.00% |
| 42 Months | 6.50% | 7.00% |
| 45 Months | 6.50% | 7.00% |
| 48 Months | 6.50% | 7.00% |
| 51 Months | 6.50% | 7.00% |
| 54 Months | 6.50% | 7.00% |
| 57 Months | 6.40% | 6.90% |
| 60 Months | 6.40% | 6.90% |
| 63 Months | 6.15% | 6.65% |
| 66 Months | 6.15% | 6.65% |
| 69 Months | 6.15% | 6.65% |
| 72 Months | 6.15% | 6.65% |
| 75 Months | 6.15% | 6.65% |
| 78 Months | 6.15% | 6.65% |
| 81 Months | 6.15% | 6.65% |
| 84 Months | 6.15% | 6.65% |
| 87 Months | 6.15% | 6.65% |
| 90 Months | 6.15% | 6.65% |
| 93 Months | 6.15% | 6.65% |
| 96 Months | 6.15% | 6.65% |
| 99 Months | 6.15% | 6.65% |
| 102 Months | 6.15% | 6.65% |
| 105 Months | 6.15% | 6.65% |
| 108 Months | 6.15% | 6.65% |
| 111 Months | 6.15% | 6.65% |
| 114 Months | 6.15% | 6.65% |
| 117 Months | 6.15% | 6.65% |
| 120 Months | 6.15% | 6.65% |
Senior citizens can get the highest RD interest rate of 7.3% across four tenures, including 24 months, 27 months, 30 months and 33 months. However, other regular depositors can earn the highest rate of 6.8% for similar tenures.
| Tenure | Interest Rate (p.a.) | Senior Citizen Rate (p.a.) |
|---|---|---|
| 6 Months | 5.50% | 6.00% |
| 9 Months | 6.00% | 6.50% |
| 12 Months | 6.35% | 6.85% |
| 15 Months | 6.45% | 6.95% |
| 18 Months | 6.55% | 7.05% |
| 21 Months | 6.55% | 7.05% |
| 24 Months | 6.80% | 7.30% |
| 27 Months | 6.80% | 7.30% |
| 30 Months | 6.80% | 7.30% |
| 33 Months | 6.80% | 7.30% |
| 3 Years to Less Than 4 Years | 6.40% | 6.90% |
| 4 Years to Less Than 5 Years | 6.40% | 6.90% |
| 5 Years to 10 Years | 6.25% | 6.75% |
Axis Bank RD
Senior citizens can earn the highest interest rate of 7.2% for an RD tenure of 60 months and 120 months. On the other hand, general customers can get the highest rate of 6.45% p.a. The rates are in effect from December 22, 2025.
Note: RD interest rate of different banks and Post Office are taken from their respective bank websites.
Interest on a RD is calculated from the date the contribution is made.
So, among all the banks listed above and Post Office, currently Kotak Mahindra Bank is offering the highest RD interest to both general and senior citizen customers.
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