INCOME TAX20 Sept 2026
RD interest rates: How much can you actually earn? Check what post offices and major banks offer | Mint
Banks and post offices have listed their recurring deposit rates, and senior citizens can earn up to 8.50% a year, with Yes Bank highest. But an RD works differently from a fixed deposit: each monthly deposit earns interest only while it stays invested. So ₹5,000 a month for a year at 8.50% earns roughly ₹2,763, not 8.50% on ₹60,000. Compare rates by tenure before you commit.
Key Statutory Highlights
- Yes Bank lists the highest senior citizen recurring deposit rate at 8.50%, followed by Bandhan Bank at 8.35% and IndusInd Bank at 8.25%.
- Each monthly RD instalment earns interest only for the time it remains deposited, so the full amount does not earn for the whole year.
- Depositing ₹5,000 monthly for 12 months at 8.50% gives about ₹2,763 interest, taking total savings to roughly ₹62,763.
Actionable Advice for Taxpayers / Founders:Check the listed rate for the exact tenure you want, because some banks pay less for longer periods — Karnataka Bank, for example, drops from 6.50% at five years to 5.80% beyond five years. Confirm current rates with your bank before booking.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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