Recurring Deposit (RD)
Build Wealth Step-By-Step Monthly
Save a fixed budget every month and secure attractive interest rates similar to Fixed Deposits. Perfect systematic investment route for risk-averse investors with rates up to 8.25% p.a.
- Yields up to 8.25% p.a.
- Start from just ₹100/mo
- Compounded interest quarterly
- Tenures: 6 months to 10 yrs
Open Recurring Deposit
Set up monthly automated savings.
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Compare rates from 30+ lenders without affecting your credit score
Latest RD Interest Rates (2026)
Compare Recurring Deposit interest rates across top national banks and postal saving schemes to plan your goals.
| Lending Institution / Partner | Regular Interest Rate (p.a.) | Senior Citizen Rate (p.a.) | Minimum Monthly Deposit |
|---|---|---|---|
| Unity Small Finance Bank | 8.00% - 8.50% | 8.50% - 9.00% | ₹500 |
| Post Office RD (Govt of India) | 6.70% (Fixed) | 6.70% (Fixed) | ₹100 |
| HDFC Bank | 7.00% - 7.50% | 7.50% - 8.00% | ₹1,000 |
| ICICI Bank | 6.90% - 7.50% | 7.40% - 8.00% | ₹500 |
| State Bank of India (SBI) | 6.50% - 7.00% | 7.00% - 7.50% | ₹100 |
Why Choose Recurring Deposits?
Unpack the key features that make RD accounts the easiest starting point for goal-based savings.
🎯 Goal-Based Savings
Ideal to cover recurring future expenses like kid's annual school fees, holiday travels, down payments, or festival jewelry purchases.
💸 Habitual Savings
Helps salary earners build regular saving discipline by deducting a chosen monthly budget automatically on a set pay date.
🔄 Compound Interest
Your monthly deposits earn quarterly compound interest, meaning previous earnings accrue future interest for accelerated growth.
❌ Zero Market Risk
Rds carry zero investment volatility. Your interest rate is locked on day one, and payouts are legally guaranteed.
Eligibility Criteria & Documents Required
Setting up a systematic saving account is fast and paperless.
Eligibility Criteria
- Residency: Indian residents, HUFs, and Sole Proprietors.
- Minor Accounts: Minors aged 10+ can operate under parental guidance.
- Minimum Deposit: Monthly installments start as low as ₹100.
- Premature Penalties: Generally 0.5% below the applicable rate for the held duration.
Documents Needed (KYC)
- Identity Proof: Aadhaar Card, PAN Card, Passport, or Voter ID.
- Address Validation: Utility bills, registry papers, or rental deeds.
- Photographs: 2 passport-sized color photos.
- Existing Customers: No physical docs needed if KYC is linked with saving account.
Frequently Asked Questions
The debt-to-income (DTI) ratio is the percentage of your monthly income that goes toward paying off existing debts (EMIs). Lenders prefer a DTI ratio below 40% to 50%. A high DTI ratio suggests you might be over-leveraged, which increases risk and can lead to loan rejection even if you have a good credit score.
Lenders look at several key factors: 1) Your credit score and repayment history, 2) Monthly net income and stability of employment, 3) Your age (typically between 21 and 60/65 years), 4) Your debt-to-income ratio, and 5) The type of employer you work for (corporate employees, PSU employees, and government staff are often considered low-risk).
In addition to the interest rate, you should watch out for: 1) Processing fees (usually 0.5% to 3% of the loan amount), 2) Prepayment or foreclosure charges (fees for paying off the loan early), 3) Documentation or stamp duty charges, and 4) Late payment fees or bounce charges in case of missed payments.