Best Banks RD Rates India 2026: Highest Recurring Deposit Interest
Find the highest Recurring Deposit rates across banks, small finance banks, and post office. Updated May 2026. Use INDwallet’s free RD Calculator to see your exact maturity.
Best Banks RD Rates India 2026: The highest Recurring Deposit rates are currently offered by small finance banks — Jana and Utkarsh at up to 8.50% for regular citizens, and 9.00% for senior citizens. Major banks like SBI, HDFC, and ICICI offer 6.50-7.25% for 1-5 year tenures. Post office RD offers a steady 7.00%. Always check the latest rates using INDwallet’s RD Calculator before investing.
AI Summary: Best RD Rates May 2026
- Small finance banks lead with 8.25-8.50% RD rates; seniors get up to 9.00%.
- Post office RD (7.00%) is the safest option, with quarterly compounding.
- Use INDwallet’s RD Calculator to compare maturity amounts across banks.
- Track all your RDs and net worth in the free Wealth Wallet.
1. Live RD Rates Comparison (May 2026)
The table below lists the highest available RD rates for 5-year tenure, sorted by rate. Rates for senior citizens are 0.25-0.50% higher, as noted.
| Bank / Institution | Regular Rate (p.a.) | Senior Citizen Rate |
|---|---|---|
| Jana Small Finance Bank | 8.50% | 9.00% |
| Utkarsh Small Finance Bank | 8.25% | 8.75% |
| Ujjivan Small Finance Bank | 7.75% | 8.25% |
| AU Small Finance Bank | 7.60% | 8.10% |
| Yes Bank | 7.75% | 8.25% |
| Bandhan Bank | 7.50% | 8.00% |
| Axis Bank | 7.10% | 7.60% |
| ICICI Bank | 7.00% | 7.50% |
| HDFC Bank | 6.75% | 7.25% |
| SBI | 6.50% | 7.00% |
| Post Office RD | 7.00% | 7.00% |
Rates are indicative and subject to change. For exact maturity, use the RD Calculator with the latest rates.
2. How to Choose the Best RD for Your Goal
Higher rates aren’t everything. Consider these factors:
- Safety: Post office RD has sovereign guarantee; bank RDs are insured up to ₹5 lakh by DICGC.
- Liquidity: Premature withdrawal penalties vary; Post office RD allows withdrawal after 3 years without penalty.
- Tax: RD interest is taxable. TDS applies if interest exceeds ₹40,000 (₹50,000 for seniors).
Read our RD Tax Benefit India guide to understand TDS rules.
3. Mistakes to Avoid While Opening an RD
Not comparing across banks
A small difference of 0.5% can mean thousands in lost interest. Use the RD Calculator to compare.
Ignoring senior citizen benefits
If you or a joint holder is a senior citizen, always opt for the higher rate.
Overlooking premature withdrawal penalty
RDs are less liquid than savings accounts. Ensure the tenure matches your goal.
Not submitting Form 15G/15H
Avoid TDS if your total income is below the taxable limit by submitting Form 15G/H.
4. Senior Citizen RD Rates: Extra 0.25-0.50%
All major banks and SFBs offer an additional interest rate for senior citizens on Recurring Deposits, typically 0.25-0.50% above the regular rate. This can significantly boost returns. For instance, Jana SFB offers 9.00% for seniors on a 5-year RD versus 8.50% for regular. Always mention senior citizen status while opening the RD.
Track your senior citizen portfolio using the Wealth Wallet.
Frequently Asked Questions
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