Home / Money / Personal Finance /  SBI recurring deposit vs Post Office RD: Latest interest rate, other details
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Recurring Deposit (RD) is a popular savings scheme that offers a fixed interest rate on the investment amount of regular instalments. It is a type of term deposit offered by all banks including the State Bank of India (SBI) and Post Office. An RD account allows you to deposit a pre-specified amount at pre-decided intervals. The installment amount once fixed, cannot be altered. The customer receives the maturity amount when the tenure of RD is over. At the time of maturity, the invested amount is paid back to the user along with accumulated interest.

Post Office RD

Post office RD has a maturity period of 5 years. The minimum monthly amount for opening Post Office RD is 10 per which can be increased in multiples in multiples of 5. However, there is no maximum limit on investment. The government decides the 5-year RD rate for Post Office.


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 recurring deposits have maturity ranging from 1 year to 10 years. The minimum monthly investment amount for SBI RD is 100 in multiples of 10. There is no upper limit on the investment amount.

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%

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

5.8​ % per annum (quarterly compounded)

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