Recurring Deposits interest rates 2026: SBI, ICICI Bank, PNB, Post Office rates compared

Recurring Deposits (RDs) remain a popular savings option for investors who want to build a corpus through fixed monthly contributions while earning assured returns. Unlike market-linked investments, an RD allows investors to deposit a predetermined amount every month for a fixed tenure, with the applicable interest rate locked in when the account is opened.

Banks and the post office offer RDs across different tenures, with interest rates varying according to the duration and, in some cases, the depositor's age. State Bank of India (SBI), ICICI Bank, Punjab National Bank (PNB) and the Post Office are among the options available to savers.

SBI RD interest rates

SBI offers recurring deposits for tenures ranging from one year to 10 years. The minimum monthly instalment is Rs 100, with subsequent contributions allowed in multiples of Rs 10.

For deposits below Rs 3 crore, SBI's rates vary across tenures, with the highest rate in the cited rate structure reaching 7.10% for a 400-day tenure. The one-year rate is 6.80%, while two-year deposits earn 7.00%. The rate is 6.75% for three and four years and 6.50% for five years.

SBI also allows customers to avail an overdraft against their RD account and transfer the account between SBI branches. However, delayed instalments attract penalties. If six consecutive instalments are not paid, the account may be prematurely closed.

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ICICI Bank RD rates

ICICI Bank offers RDs across tenures ranging from six months to 10 years. For general customers, rates range from 4.50% for deposits of up to six months to 6.50% for tenures above three years. Senior citizens receive an additional rate across most tenure buckets.

PNB and Post Office RD rates

PNB allows customers to open an RD with a minimum monthly instalment of Rs 100, while the maximum monthly instalment can be Rs 25 lakh per customer. Tenures can range from six months to 120 months. The bank also provides loan facilities against RD balances and permits premature withdrawal subject to a 1% penal interest.

Senior citizens receive additional interest of 50 basis points for deposits up to five years and 80 basis points for deposits above five years. Super senior citizens aged 80 years and above receive an additional 80 basis points across maturity buckets.

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Meanwhile, the government has kept the Post Office RD interest rate unchanged at 6.7% for the July-September 2026 quarter. The Post Office RD, also known as the National Savings Recurring Deposit Account, can be opened with as little as Rs 100, with no maximum investment limit.

How much should you invest monthly?

The monthly amount required depends on the target maturity value, tenure and applicable interest rate. The illustrative figures provided show how monthly contributions can vary significantly depending on the target corpus.

The table shows the impact of extending the investment period. To target Rs 10 lakh, the monthly contribution falls from Rs 80,503 over one year to Rs 6,082 over 10 years under the stated illustration.

RDs can therefore suit investors seeking disciplined savings and relatively predictable returns. However, investors should compare the applicable rate, tenure, premature withdrawal rules, taxation and senior-citizen benefits before choosing an RD. Bank deposit insurance also applies subject to the applicable rules and limits.

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