The Centre has increased the interest rate on the five-year Post Office Recurring Deposit (RD) scheme by 20 basis points (bps) to 6.7 percent for the October-December 2023 quarter. Whereas, interest rates on recurring deposits varies depending on the 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 on a 5 year tenure.
The minimum investment is Rs 100/- per month and there is no maximum limit. From October 1 to December 31, 2023 interest paid is 6.7% per annum (quarterly compounded). The tenure of Post office recurring deposit is 5 years.Also read: 5-year post office recurring deposit (RD) interest rate hiked: Check latest RD rate According to the SBI website, the interest rate on RDs is the same as the rate on term deposits for the general public and elderly citizens. If six consecutive instalments are not completed, the account will be closed early, and the remaining balance will be paid to the account holder.
The bank pays interest of 5.45 percent for term of three to five years or less. SBI provides 5.50 percent for long-term duration of between 5 years and up to 10 years.
HDFC Bank offers an interest rate offer between 4.50% to 7.10% on tenure ranging from 6 months t0 10 years. The bank offers 7% interest on 60-month tenure.
ICICI Bank RD interest rate
ICICI Bank offers an interest rate between 4.75% to 7.10% for regular citizens and 5.25% to 7.50% for senior citizens. The bank offers 7% on tenure above 3 years up to 5 years.
Also read: Earn up to 7.75%: Which bank is offering highest interest rate on recurring deposits (RDs)
Yes Bank RD interest rate
Yes Bank offers interest rates between 6.10% to 7.50% for regular citizens and 6.60% to 8% for senior citizens for tenures ranging from 6 months to 10 years. The bank offers 7.25% on tenure between 36 months to 60 months.Kotak Mahindra Bank offers interest rates between 6% to 7.20% for regular citizens and 6.50% to 7.70% for senior citizens for tenures ranging from 6 months to 10 years. The bank offers 6.25% on tenure between 4 years to less than 5 years.
| Tenure | RD interest rate | |
| Post office RD | 5 year | 6.70% |
| Kotak Mahindra Bank RD | 4 years to less than 5 years | 6.25% |
| Canara Bank | 3 Years to less than 5 Years | 6.80% |
| SBI RD | 3years to 5 years | 6.50% |
| HDFC Bank RD | 60 months | 7% |
| ICICI Bank | 3years to 5 years | 7% |
| Yes Bank | 36 months to 60 months. | 7.25% |
