Recurring deposit (RD) latest interest rates: SBI vs Post Office deposits

State Bank of India (SBI) and Post Office offer RD options to their customers.

1 min read . 27 Jun 2021Livemint

Recurring deposit (RD) is a well-known saving scheme for many in India. In the RD account, the customer makes the payments in instalments and receives the maturity amount at the maturity date. The instalment amount once fixed, cannot be altered. An RD account can be opened with a bank or post office. Both State Bank of India (SBI) and Post Office offer RD options to their customers.

SBI Recurring Deposit (RD)

• SBI RD interest rates vary between 5%-5.4% for the general public and an additional interest rate hike of 50 basis points for senior citizens. These rates are effective from 8 January 2021.
• SBI RDs have maturity ranging from 1 year to 10 years.
• In the SBI RD account, customers are required to make monthly deposits of a minimum of ₹100 and in multiples of ₹10. There is no maximum limit on the deposits.

SBI RD rates effective 8 January 2021

1 year to less than 2 years - 4.9%

2 years to less than 3 years - 5.1%

3 years to less than 5 years - 5.3%

5 years and up to 10 years - 5.4%

Post Office Recurring Deposit (RD) latest interest rates

P ost Office RDs offer 5.8% per annum, compounding quarterly. These rates are effective from 1 January 2021.

• Post Office offer RDs for a tenure of 5 years only.
• The minimum amount required for opening a Post Office RD is ₹10 per month or any amount in multiples of ₹5. However, there is no maximum limit on investment.

5-Year Post Office Recurring Deposit Account (RD) effective 1 April 2021

5.8​ % per annum (quarterly compounded)