Recurring deposits are the best way to start a habit of saving money on a regular monthly basis.
You can invest in RDs for a short term goal to save money for an upcoming expense like purchasing a new bike or planning an annual vacation.
Let’s have a look at the best RD interest rates in India.
Highest RD Interest Rates 2020 (1 Yr)
You can look at the top 3 banks which give the highest RD interest rates. Top 3 highest RD interest paying banks are as below.
#1. Ujjivan Small Bank
Ujjivan Small Bank has become the highest interest-paying bank in FDs as well as RDs.
You can start with as minimum as Rs. 100. The minimum depositing period is 6 months.
Let’s check the RD interest rates as below.
- For Individual – 8.00%
- For Senior citizen – 8.50%
#2. Yes Bank
Yes Bank is the second-highest RD interest-paying bank on recurring deposits.
Let’s check the RD interest rates as below.
- For Individual – 7.25%
- For Senior citizen – 7.75%
#2. IDFC First Bank
IDFC First Bank pays higher interest on recurring deposits. Let’s check the RD interest rates as below.
- For Individual – 7.25%
- For Senior citizen – 7.75%
Best RD Interest Rates 2020
You can check out the top 10 banks with best RD interest rates in India in the table below.
| Bank | Interest Rate Individual | Interest Rate Senior Citizen |
| Ujjivan Small Finance Bank | 6.50% – 8.00% | 7.00% – 8.50% |
| Yes bank | 6.85% – 7.50% | 7.35% – 8.00% |
| RBL Bank | 6.65% – 7.60% | 7.15% – 8.10% |
| IDFC First Bank | 6.75% – 7.25% | 7.25% – 7.75% |
| Lakshmi Vilas Bank | 6.25% – 6.75% | 6.75% – 7.35% |
| AU Small Finance Bank | 5.75% – 7.53% | 6.25% – 8.03% |
| Indian bank | 6.20% – 6.45% | 6.20% – 6.45% |
| Axis Bank | 5.80% – 6.50% | 6.05% – 7.15% |
| Indian Overseas Bank | 5.75% – 6.10% | 6.25% – 6.60% |
| Karur Vysya Bank | 4.50% – 6.25% | 5.70% – 6.80% |
Current RD Interest Rates 2020
Let’s discuss all the banks with their RD interest rates one by one.
#1. SBI RD Interest Rates 2020
State bank of India has slashed RD & FD interest rates to 0.5% for an individual earlier the interest rate on a 1-year RD now reduced to 5.70%.
| Duration | Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months to 12 months | 5.00 | 5.50 |
| 12 months to 24 months | 5.70 | 6.20 |
| 24 months to 36 months | 5.70 | 6.20 |
| 36 months to 60 months | 5.70 | 6.20 |
| 60 months to 120 months | 5.70 | 6.20 |
#2. HDFC Bank RD Interest Rates 2020
You can invest in HDFC bank RD with a minimum of Rs. 1000 for at least 6 months. There’s no maximum limit on investment.
| Duration | Regular Interest Rate (%age) | Senior Citizen Interest Rate (%age) |
| 6 Months | 4.75 | 5.25 |
| 9 Months | 5.25 | 5.75 |
| 12 Months | 5.80 | 6.30 |
| 15 Months | 5.80 | 6.30 |
| 24 Months | 5.80 | 6.30 |
| 27 Months | 6.00 | 6.50 |
| 36 Months | 6.00 | 6.50 |
| 39 Months | 6.00 | 6.50 |
| 48 Months | 6.00 | 6.50 |
| 60 Months | 6.00 | 6.50 |
| 90 Months | 6.00 | 6.50 |
| 120 Months | 6.00 | 6.50 |
Also check out – Savings account Interest rate
#3. Axis Bank RD Interest Rates 2020
You can get better returns with Axis bank RD as compared to its competitor nationalized banks like HDFC and ICICI. Let’s look at the interest rates slab wise.
| Duration | Regular Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months to 9 months | 5.80 | 6.05 |
| 9 months to 12 months | 6.05 | 6.30 |
| 12 months to 18 months | 6.40 | 7.05 |
| 18 months to 24 months | 6.50 | 7.15 |
| 24 months to 36 months | 6.50 | 7.00 |
| 36 months to 60 months | 6.50 | 7.00 |
| 60 months to 120 months | 6.50 | 7.00 |
#4. ICICI Bank RD Interest Rates 2020
ICICI bank has also reduced interest rates effective from April 1. You can still get decent interest rates while enjoying their high-end platforms.
| Duration | Regular Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months | 4.75 | 5.25 |
| 9 months | 5.25 | 5.75 |
| 12 months | 5.80 | 6.30 |
| 15 months | 5.80 | 6.30 |
| 18 months | 5.80 | 6.30 |
| 21 months | 5.80 | 6.30 |
| 24 months | 5.80 | 6.30 |
| 27 months | 6.00 | 6.50 |
| 36 months onwards | 6.00 | 6.50 |
#5. Yes Bank RD Interest Rates 2020
Yes bank is among the top highest RD interest rate paying bank. You can look their different interest rate slabs.
| Duration | Regular Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 Months | 6.85 | 7.35 |
| 9 Months | 7.15 | 7.65 |
| 12 Months | 7.25 | 7.75 |
| 15 Months | 7.25 | 7.75 |
| 18 Months | 7.25 | 7.75 |
| 21 Months | 7.25 | 7.75 |
| 24 Months | 7.50 | 8.00 |
| 27 Months | 7.50 | 8.00 |
| 30 Months | 7.50 | 8.00 |
| 33 Months | 7.50 | 8.00 |
| 3 years upto 10 Years | 7.25 | 7.75 |
#6. IDFC First Bank RD Interest Rates 2020
You can go for IDFC First for higher returns on your RD account. IDFC First is among the Top 3 highest RD interest rate paying banks.
| Duration | Regular Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months | 6.75 | 7.25 |
| 9 months | 7.00 | 7.50 |
| 12 months to 36 months | 7.25 | 7.75 |
| 39 months to 90 months | 7.20 | 7.70 |
| 120 Months | 7.00 | 7.50 |
#7. Canara Bank RD Interest Rates 2020
Canara bank is one of the oldest public sector banks but public sector banks don’t pay high returns when compared to the private sector banks.
| Duration | Regular Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months | 5.00 | 5.00 |
| 9 months | 5.50 | 6.00 |
| 12 months | 5.50 | 6.00 |
| 24 months | 5.85 | 6.35 |
| 36 months | 5.80 | 6.30 |
| 60 months onwards | 5.80 | 6.30 |
#8. Indian Overseas Bank RD Interest Rates 2020
IOB still gives you slightly higher interest on recurring deposit as compared to big private banks and public sector banks.
| Duration | Regular Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months to 9 months | 5.75 | 6.25 |
| 9 months to 12 months | 6.10 | 6.60 |
| 12 months to 24 months | 6.10 | 6.60 |
| 24 months to 36 months | 6.10 | 6.60 |
| 36 months to 60 months | 6.10 | 6.60 |
| 60 months to 120 months | 6.10 | 6.60 |
#9. PNB RD Interest Rates 2020
India’s second largest bank is popular for their wide network and their hold in rural India. Let’s have a glance at their interest rates.
| Duration | Regular Interest Rates(%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months to 9 months | 5.50 | 6.00 |
| 9 months to 12 months | 5.60 | 6.10 |
| 12 months to 24 months | 5.60 | 6.10 |
| 24 months to 36 months | 5.60 | 6.10 |
| 36 months to 60 months | 5.60 | 6.10 |
| 60 months to 120 months | 5.60 | 6.10 |
#10. IDBI Bank RD Interest Rates 2020
IDBI bank has different slabs for different duration of recurring deposits. You can increase or decrease the tenure for maximum returns.
| Duration | Regular Interest Rates(%ge) | Interest Rates for Senior Citizens (%ge) |
| 12 months | 5.85 | 6.35 |
| 12 months to 24 months | 5.75 | 6.25 |
| 24 months to 36 months | 5.80 | 6.30 |
| 36 months to 60 months | 5.75 | 6.25 |
| 60 months | 5.90 | 6.40 |
| 60 months to 84 months | 5.80 | 6.30 |
| 84 months to 120 months | 5.80 | 6.30 |
#11. Indian Bank RD Interest Rates 2020
Indian Bank is an exception in public sector bank when it comes to paying interest on RDs or FDs. It’s among the best interest paying banks.
| Duration | Regular Interest Rates(%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months | 6.20 | 6.20 |
| 9 months | 6.25 | 6.25 |
| 12 months | 6.45 | 6.45 |
| 15 months | 6.45 | 6.45 |
| 18 months | 6.45 | 6.45 |
| 21 months | 6.45 | 6.45 |
| 24 months | 6.35 | 6.35 |
| 27 months | 6.35 | 6.35 |
| 36 months | 6.35 | 6.35 |
| 37 months onwards | 6.25 | 6.25 |
#12. Karur Vysya Bank RD Interest Rates
KVB is the last bank among top 10 highest interest paying banks. You can enjoy up to 6.25% return on 5 year RD.
| Duration | Regular Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months | 4.50 | 5.70 |
| 9 months | 5.00 | 6.20 |
| 12 months | 5.25 | 6.25 |
| 24 months | 5.50 | 6.75 |
| 36 months | 6.35 | 6.80 |
| 60 months | 6.25 | 6.80 |
#13. UCO Bank RD Interest Rates
UCO bank offes RD interest rates in a wide range starting from 4.7% till 5.80%.
| Duration | Regular Interest Rates (%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months | 4.75 | 5.00 |
| 9 months | 5.55 | 5.80 |
| 12 months | 5.85 | 6.10 |
| 24 months | 5.85 | 6.35 |
| 36 months | 5.85 | 6.35 |
| 60 months | 5.80 | 6.30 |
| 120 months | 5.80 | 6.30 |
#14. Bank of Baroda RD Interest Rates
Bank of Baroda offers RD interest rates as below.
| Duration | Interest Rates For Public(%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months | 4.50 | 5.00 |
| 9 months | 5.00 | 5.50 |
| 12 months | 5.00 | 5.50 |
| 24 months | 5.70 | 6.25 |
| 36 months onwards | 5.70 | 6.25 |
#15. Kotak Mahindra Bank RD Interest Rates
Kotak Mahindra bank is very aggressive in paying benefits to their customers. You can expect an interest rate of 5.90% as max for regular pesona nd 6.40% for senior citizens.
| Duration | Regular Interest Rates | Senior Citizen Rates |
| 6 Months | 5.50% | 6.00% |
| 9 Months | 5.50% | 6.00% |
| 12 Months | 5.75% | 6.25% |
| 15 Months | 5.90% | 6.40% |
| 18 Months | 5.90% | 6.40% |
| 21 Months | 5.90% | 6.40% |
| 24 Months | 5.90% | 6.40% |
| 27 Months | 5.90% | 6.40% |
| 30 Months | 5.90% | 6.40% |
| 33 Months | 5.90% | 6.40% |
| 3 years – less than 4 years | 5.90% | 6.40% |
| 4 years – less than 5 years | 5.90% | 6.40% |
| 5 years – 10years | 5.50% | 6.00% |
#16. Union Bank RD Interest Rates
Union bank pays you interest in the range of 5.25% to 5.80% on your recurring account. Union bank doesn’t offer any enhanced interest rates for senior citizens.
| Duration | Regular Interest Rates(%ge) | Interest Rates for Senior Citizens (%ge) |
| 6 months | 5.25 | 5.25 |
| 9 months | 5.50 | 5.50 |
| 12 months | 5.75 | 5.75 |
| 18 months | 5.75 | 5.75 |
| 24 months | 5.75 | 5.75 |
| 36 months | 5.80 | 5.80 |
| 60 months | 5.80 | 5.80 |
| 120 months | 5.80 | 5.80 |
#17. Lakshmi Vilas Bank RD Interest Rates 2020
| Duration | Interest Rate Regular(%ge) | Interest Rate Senior Citizen(%ge) |
| 6 months | 6.25 | 6.75 |
| 9 months | 6.50 | 7.00 |
| 12 months | 6.75 | 7.35 |
| 24 months | 6.75 | 7.35 |
| 36 months | 6.50 | 7.10 |
| 60 months up to 120 months | 6.50 | 7.10 |
#18. RBL Bank RD Interest Rates 2020
RBL bank is another contender to pay you wonderful returns on your recurring account. RBL bank is in the top 10 highest paying banks of India.
| Duration | Interest Rate Regular (%ge) | Interest Rate Senior Citizen (%ge) |
| 6 months | 6.65 | 7.15 |
| 12 months | 6.75 | 7.25 |
| 15 months | 7.05 | 7.55 |
| 18 months | 7.15 | 7.65 |
| 24 months | 7.50 | 8.00 |
| 36 months | 7.60 | 8.10 |
| 60 months | 7.50 | 8.00 |
| 120 months | 7.25 | 7.75 |
#19. Ujjivan Small Bank RD Interest Rates 2020
Ujjivan is the highest RD interest paying bank in the country. You will be amaze to see the interest rates they are offering to the customers.
| Duration | Regular Interest Rate | Senior Citizen Interest Rate |
| 6 months to 9 months | 7.00% | 7.50% |
| 12months to 24 months | 8.00% | 8.50% |
| 27 months to 36 months | 7.50% | 8.00% |
| 39 months to 60 months | 7.00% | 7.50% |
| 63 months to 120 months | 6.50% | 7.00% |
#20. Au Small Finance Bank RD Interest Rates
Just like other small finance banks, Au Small Finance bank gives you better yields on your recurring deposits. Let’s have a look at the interest rates.
| Duration | Regular Interest Rate (%age) | Senior Citizen Interest Rate (%age) |
| 3 Months | 5.75 | 6.25 |
| 4 Months to 6 Months | 6.25 | 6.75 |
| 7 Months to 12 Months | 6.75 | 7.25 |
| 13 Months to 15 months | 7.30 | 7.80 |
| 16 Months to 18 months | 7.25 | 7.75 |
| 19 Months to 24 Months | 7.25 | 7.75 |
| 25 Months to 36 Months | 7.53 | 8.03 |
| 37 Months to 45 Months | 7.25 | 7.75 |
| 46 Months to 60 Months | 7.25 | 7.75 |
| 61 Months to 120 Months | 7.00 | 7.50 |
Post Office RD Interest Rates
Post office is still the prefered choice among rural India. Post office is giving almost same interest as given by public sector banks. However, Post office pays more on the fixed deposits than on RD if you compare.
| Duration | Interest Rates |
| 5 years | 5.8% |
You can extend RD for a further 5 years by giving an application at your post office.
Check out – PPF Inerest rate
RD Interest Rates Comparison
You can check all the banks and compare their RD interest rates at one place. I have curated a table below for your better understanding.
| Bank | Interest Rate Individual | Interest Rate Senior Citizen |
| SBI | 5.00% – 5.70% | 5.50% – 6.20% |
| ICICI Bank | 4.75% – 6.00% | 5.25% – 6.50% |
| Ujjivan Small Finance Bank | 6.50% – 8.00% | 7.00% – 8.50% |
| Yes bank | 6.85% – 7.50% | 7.35% – 8.00% |
| RBL Bank | 6.65% – 7.60% | 7.15% – 8.10% |
| IDFC First Bank | 6.75% – 7.25% | 7.25% – 7.75% |
| Lakshmi Vilas Bank | 6.25% – 6.75% | 6.75% – 7.35% |
| AU Small Finance Bank | 5.75% – 7.53% | 6.25% – 8.03% |
| Indian bank | 6.20% – 6.45% | 6.20% – 6.45% |
| Axis Bank | 5.80% – 6.50% | 6.05% – 7.15% |
| Indian Overseas Bank | 5.75% – 6.10% | 6.25% – 6.60% |
| HDFC Bank | 4.75% – 6.00% | 5.25% – 6.50% |
| Canara Bank | 5.00% – 5.85% | 5.00% – 6.35% |
| Punjab National Bank | 5.50% – 5.60% | 6.00% – 6.20% |
| IDBI Bank | 5.75% – 5.90% | 6.25% – 6.40% |
| UCO Bank | 4.75% – 5.80% | 5.25% – 6.35% |
| Bank of Baroda | 4.50% – 5.70% | 5.00% – 6.25% |
| Kotak Mahindra Bank | 5.50% – 5.90% | 6.00% – 6.40% |
| Karur Vysya Bank | 4.50% – 6.25% | 5.70% – 6.80% |
| Union Bank | 5.25% – 5.80% | 5.25% – 5.80% |
You would like to check – EPF interest rate
Recurring Deposit Interest Calculator
Let me show you how to calculate recurring deposit interest formula with example.
RD Interest Calculation Formula
M = P[(1+R) (n-1)] / [1-(1+R)^(-1/3)]
Where,
M = Maturity value
P = Monthly Instalment
n = Tenure (no. of quarters)
R = Rate of interest/400 (compounded quarterly)
For example, You are investing Rs 5,000 for 2 years (24 months) RD at an interest rate of 8% (for easy calculations), the maturity value will be as below.
M = 5000*[(1+8/400) (8-1)]/[1-(1+8/400)^(-1/3)] = 62730.85
Total maturity = Rs. 62,730.85
Interest earned = Rs. 2,730.85
Conclusion
Invest RD only if you are saving money for a short term goal. Otherwise, it’s better to invest in high return segments like mutual funds through monthly SIP.
If you have any questions regarding fixed deposits, do let me know in the comments.
