personal finance

Post office RD vs bank RD interest rates: Which offers best recurring deposit rate?


The Centre has increased the interest rate on the Post Office Recurring Deposit (RD) scheme by 30 basis points (bps) to 6.5 percent for the July-September 2023 quarter. Interest rate on recurring deposits varies depending on bank. Here’s a comparison between post office recurring deposit interest rates and top bank RD rates such as SBI, ICICI Bank, and HDFC Bank. Let us see who is offering the best interest rate on the recurring deposit.

Post office recurring deposit

The tenure of the Post office RD is set at 5 years (60 monthly deposits) from the date of opening. The interest rate applicable throughout the extension will be the same as when the account was first opened. Interest rate offered for this quarter is 6.5%SBI RD interest rate
The rate of interest on RDs is the same as that on term deposits for public and senior persons, according to the SBI website. The account will be cancelled early, and the remaining balance will be paid to the account holder if six consecutive instalments are not made to the bank.

For tenure between 1 year to less than 2 year, the bank pays interest of 5.10 percent. For tenure between 2 years to less than 3 years, interest rate offered is 5.20 percent. For 3 years to less than 5 years tenure, bank offers 5.45 percent. Long-term tenure between 5 years and up to 10 years, SBI offers 5.50 percent. The minimum deposit period is 12 months; maximum deposit period is 120 months.

ICICI Bank RD rates
ICICI Bank offers interest rate between 4.75% to 7.10% for regular citizens and 5.25% to 7.50% for senior citizens. The rates are effective from February 24, 2023. According to the ICICI Bank website, “Recurring Deposits will be available for a minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years.”

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HDFC Bank RD rates
HDFC Bank offers interest rate varying between4.50 percent on 6 months tenure. The interest rate offered for 9month, 12 month and 15 months is 5.75%, 6.60%, and 7.10% respectively. For tenure of 24 Months, 27 months, 36 months, 39 months, 48 months, , 60 months, 90 months and 120 months, HDFC Bank offers 7% interest rate. The interest on a recurring deposit is calculated from the payment date.

Note that special Edition Fixed Deposit rates of 33 month and 55 month are not applicable for RD booking.

Yes Bank RD rates
Yes Bank offers interest rate between 6.10% to 7.75% on tenure from 6 months to 5 Years and above. RD can be booked for tenure in multiple of 3 months (e.g: 6 months, 9 months, 12 months…). The bank will charge 1% penalty on missed instalment.

Post office RD vs bank RD interest rates

Bank- Post office Interest rate Tenure
Post office RD 6.50% 5 years
SBI 6.50% 3years to 5 years
HDFC Bank 7% 60 months
ICICI Bank 7% 3years to 5 years
Yes Bank 7.25% 3 years



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