RD interest rates: How much can you actually earn? Check what post offices and major banks offer

Senior citizens can earn up to 8.50% yearly interest. Yes Bank offers the highest listed rate, followed by Bandhan Bank at 8.35%. IndusInd Bank comes next, with its highest senior-citizen rate at 8.25%.

Among other banks, DBS Bank and TMB list senior-citizen rates of up to 8%. Kotak Mahindra Bank and Federal Bank each offer up to 7.90%. Axis Bank follows with a maximum of 7.85%.

Punjab National Bank (PNB), Indian Overseas Bank, and Bank of India offer the highest rates at 7.80%. Karnataka Bank also reaches 7.80%. SBI and IDBI Bank each list a maximum senior citizen rate of 7.50%.

Several banks offer senior citizens up to 7.75%. These include ICICI Bank, HDFC Bank, Bank of Baroda and Canara Bank. Indian Bank and Union Bank of India also reach this level.

A recurring deposit (RD) allows people to save a fixed amount every month. Their earnings depend on the monthly contribution, interest rate and deposit period. Unlike with a fixed deposit, the entire investment does not start earning interest at the same time. Each monthly payment earns interest only for the time it remains deposited.

This difference matters when estimating returns. Depositing ₹ 5,000 monthly means saving ₹ 60,000 over 12 months. However, applying 8.50% directly to ₹ 60,000 would give a misleading yearly estimate. The last payment stays invested for much less time than the first.

Assume 12 payments of ₹ 5,000, each deposited at the month’s beginning. Also, assume an annual rate of 8.50% applies throughout this 12-month period. The estimated interest would be around ₹ 2,763 before tax. Total savings and interest would therefore reach approximately ₹ 62,763.

For one year, Bandhan Bank leads the listed banks at 7.85%. IndusInd Bank follows at 7.75% while Yes Bank and Saraswat Bank offer 7.25%. Kotak Mahindra Bank and Karnataka Bank each list 7.10%.

For three years, Deutsche Bank has offered the highest listed rate, at 8%. Bank of Baroda, Yes Bank, Bandhan Bank and IndusInd Bank each show 7.25%. ICICI Bank lists 7.20%, followed by Axis Bank at 7.10%. SBI offers 6.80% for one year and 6.75% for three years.

For five years, Deutsche Bank leads with an annual rate of 7.50%. Yes Bank, Dhanlaxmi Bank and IndusInd Bank each list 7.25%. ICICI Bank, HDFC Bank and Axis Bank offer 7% for this period.

Beyond five years, HDFC Bank , Axis Bank, Yes Bank and IndusInd Bank show 7%. ICICI Bank lists 6.90% while Canara Bank offers 6.70%. SBI maintains 6.50% across both categories.

Some banks show lower rates for longer commitments. Karnataka Bank lists 6.50% for five years, falling to 5.80% in 5+ years. Dhanlaxmi Bank’s rate drops from 7.25% (5 years) to 6.60% (5+ years). However, Punjab & Sind Bank rises from 6% (5 years) to 6.25% in 5+ years.

The Post Office RD offers 6.7% annual interest, compounded quarterly. Monthly deposits start at ₹ 100, with higher amounts in multiples of ₹ 10. There is no maximum deposit limit.

The first payment is made when the account is opened. Subsequent monthly payments must match this amount. Payment deadlines depend on the account’s opening date.