Recurring deposit
A bank or post office deposit where you put in a fixed amount every month, at a rate fixed on day one.
A recurring deposit is a monthly savings habit with a guaranteed rate. See what yours would build with our RD calculator, and compare it with a SIP in recurring deposit vs SIP.
How the interest is worked out, bank vs post office, and the tax: recurring deposit explained.
Questions people ask
What is a recurring deposit?
A recurring deposit, or RD, is a savings account where you deposit the same amount every month for a set term, and the bank or post office pays a fixed interest rate. Most banks compound RD interest quarterly. The post office RD runs for 5 years at a government-set rate, 6.7% a year for October to December 2026.
Is RD interest taxable?
Yes. RD interest is added to your income and taxed at your slab, and banks cut TDS once your total interest from that bank crosses the yearly limit.
RD or SIP, which is better?
They suit different goals. An RD gives a guaranteed return and suits a goal a year or two away. A SIP in an equity fund can grow faster over many years but its value moves with the market.
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