Best RD Rates India 2026 — Top 10 Banks Recurring Deposit Comparison

By FinMandi TeamMay 202610 min read✓ 2026 Updated

Quick Summary

Highest RD rate (bank): Canara Bank and PNB at 7.0-7.25% for most tenures
Highest overall: Small finance banks up to 8.5% on RD
Post Office RD: 6.7% p.a. — government guarantee, quarterly compounding
SBI RD: 6.5-7.0% depending on tenure — safest option
Minimum deposit: As low as Rs 100/month at most banks
Best for: Salaried people who want to save monthly — like SIP but in bank

📊 Best RD Rates Comparison — May 2026

Bank	1 Year	2 Year	3 Year	Min Amount
Suryoday SFB Highest	8.25%	8.50%	8.50%	Rs 100
Utkarsh SFB	8.00%	8.25%	8.25%	Rs 100
Canara Bank	6.85%	7.00%	7.00%	Rs 500
PNB	6.80%	7.00%	7.00%	Rs 100
SBI	6.80%	6.90%	6.90%	Rs 100
HDFC Bank	6.60%	7.00%	7.00%	Rs 1,000
ICICI Bank	6.70%	7.00%	7.00%	Rs 500
Post Office RD	6.70%	6.70%	6.70%	Rs 100

🧮 RD Maturity Calculator

Formula: Monthly deposit × [(1+r/n)^(n×t) - 1] / (1 - (1+r/n)^(-1/3))

Simple example — Rs 5,000/month RD for 3 years at 7%: Total deposited = Rs 1,80,000. Maturity amount = approximately Rs 2,01,500. Interest earned = Rs 21,500.

💡 RD vs SIP: RD gives guaranteed 6.5-8.5% with zero risk. SIP gives 12-15% historically but with market risk. Choose RD for goals within 3 years (emergency fund, vacation, gadget). Choose SIP for goals 5+ years away (house down payment, retirement, children education).

📋 RD vs FD — Which is Better?

RD is better when: You have monthly income and want to save regularly. Forces discipline. No lump sum needed.
FD is better when: You have a lump sum to invest. Interest rate is slightly higher on FD vs RD of same tenure.
Both give: Guaranteed returns, DICGC insurance up to Rs 5L, premature withdrawal option with small penalty

Also read: Best FD Rates India 2026 · FD vs RD vs Savings Account · Senior Citizen FD Rates

Disclaimer: RD rates as of May 2026, subject to change. Verify with bank before opening RD account.