Archive · 20 Sep 2026
RD Interest Rates: What Banks and Post Offices Offer
A recurring deposit lets you put the same amount of money into an account every month.
The bank then pays interest on each payment.
The first payment earns interest for the longest time, while the last payment earns interest for only a short time.
That is why you cannot simply apply the yearly rate to all the money deposited during the year.
For example, putting ₹5,000 in every month means saving ₹60,000 in a year.
At an assumed 8.50% rate, the article estimates about ₹2,763 in interest before tax.
The Post Office offers a 6.7% RD rate with quarterly compounding.
Senior citizens generally receive higher listed rates than other depositors, although the article contains different figures for some bank and tenure comparisons.
Senior citizens are listed as receiving up to 8.50% annually, with Yes Bank named highest in the opening comparison.
The article’s tenure table separately lists Bandhan Bank at 7.85% for one-year RDs and Yes Bank at 7.25%, creating a discrepancy.
For a ₹5,000 monthly RD at an assumed 8.50% for 12 months, estimated interest is about ₹2,763 before tax, producing roughly ₹62,763.
The Post Office RD offers 6.7% annual interest, compounded quarterly, with deposits starting at ₹100.
For non-senior citizens, the supplied table lists Yes Bank at up to 8%, IndusInd Bank at 7.99% and Bandhan Bank at 7.85%.
- Who
- People saving through recurring deposits, including senior citizens and general depositors, along with banks and the Post Office.
- What
- A comparison of RD interest rates and estimated returns across the Post Office and major banks.
- When
- Rates are shown for one-year, three-year, five-year and longer-than-five-year periods; the example covers 12 monthly payments.
- Where
- India, through Indian banks and the Post Office.
- Why
- To show how monthly contributions, interest rates and deposit periods affect RD earnings.
- Senior-citizen maximum listed rate
- 8.50% annually, attributed to Yes Bank in the article’s opening comparison.
- General-depositor maximum listed rate
- 8% at Yes Bank in the supplied table.
- Post Office RD rate
- 6.7% annually, compounded quarterly.
- Monthly example
- ₹5,000 deposited each month for 12 months, or ₹60,000 in total contributions.
- Estimated return at 8.50%
- Approximately ₹2,763 interest and ₹62,763 total before tax.
- Estimated return at 8%
- Approximately ₹2,600 simple interest and ₹62,600 total before tax, excluding compounding.
- Post Office minimum deposit
- ₹100, with higher deposits accepted in multiples of ₹10 and no maximum deposit limit.