Types of Recurring Deposit – Overview of RD & List of RD Accounts in India (2026 Guide)
A Recurring Deposit (RD) is one of the simplest ways to build savings gradually. You deposit a fixed amount every month and earn guaranteed returns at a fixed interest rate.
But did you know there are different types of RD accounts in India? Banks and post offices offer multiple variations based on flexibility, eligibility, and user profile.
In this 2026 guide, we’ll explain the overview of RD, its types, and the list of RD accounts available in India.
Quick Summary: Recurring Deposit (RD)
| Feature | Details |
|---|---|
| Investment Type | Monthly deposit |
| Risk Level | Low |
| Returns | Fixed & guaranteed |
| Tenure | 6 months to 10 years |
| Compounding | Usually quarterly |
| Loan Facility | Available in most banks |
| Tax Benefit | No 80C benefit |
| Best For | Monthly savings goals |
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a term deposit where:
- You deposit a fixed amount every month
- Interest is compounded quarterly
- You receive principal + interest at maturity
Unlike Fixed Deposit (FD), you don’t need a lump sum to start.
RD is ideal for:
✔ Salaried employees
✔ Students
✔ Small business owners
✔ First-time investors
Types of Recurring Deposit in India
Let’s look at the different types of RD accounts available in India.
Regular Bank Recurring Deposit
This is the most common type of RD.
Features:
- Fixed monthly deposit
- Tenure from 6 months to 10 years
- Auto-debit facility
- Loan against RD is available
Available in:
- SBI
- HDFC Bank
- ICICI Bank
- Axis Bank
- Canara Bank
- Union Bank
- Indian Overseas Bank
- PNB and other banks
Best for: Salaried individuals who want disciplined monthly savings.
Post Office Recurring Deposit (5-Year RD)
Offered by India Post and backed by the Government of India.
Features:
- Fixed 5-year tenure
- Quarterly compounding
- Loan facility available
- Very low minimum deposit (₹100)
Best for: Conservative investors looking for government-backed safety.
NRE Recurring Deposit (For NRIs)
Available for Non-Resident Indians.
Features:
- Opened under an NRE account
- Deposit in Indian Rupees
- Repatriable funds
- Interest may be tax-free in India (subject to rules)
Best for: NRIs earning income abroad.
NRO Recurring Deposit (For NRIs)
For managing income earned in India.
Features:
- Deposit from Indian income
- Interest taxable
- Repatriation limits apply
Best for: NRIs with Indian rental or investment income.
Flexi Recurring Deposit (Flexible RD)
Offered by select banks.
Features:
- Flexible monthly deposit amount
- Linked to a savings account
- Excess balance automatically transferred
Best for: Individuals with variable monthly income.
RD for Minors
Opened in the name of a minor under a guardian.
Features:
- Encourages savings habits early
- Guardian manages the account
- Converts to regular RD after 18 years
Best for: Parents planning education funds.
List of RD Accounts in India (2026)
Here are major institutions offering RD accounts:
Public Sector Banks
- State Bank of India (SBI RD)
- Punjab National Bank (PNB RD)
- Bank of Baroda RD
- Canara Bank RD
- Union Bank RD
- Indian Bank RD
- Indian Overseas Bank RD
Private Sector Banks
- HDFC Bank RD
- ICICI Bank RD
- Axis Bank RD
- Kotak Mahindra Bank RD
- Yes Bank RD
Government-Backed Scheme
- Post Office 5-Year RD
Each bank may offer slightly different interest rates and minimum deposit requirements.
Key Features of Recurring Deposit
Fixed Monthly Contribution
Start with as low as ₹100 (varies by bank).
Guaranteed Returns
Interest rate fixed at the time of opening.
Flexible Tenure
From 6 months up to 10 years.
Loan Facility
Most banks allow a loan against RD (75%–95% of the balance).
Premature Closure
Allowed with a penalty.
Benefits of Recurring Deposit
- Builds a disciplined saving habit
- Low-risk investment
- Suitable for short- and medium-term goals
- Easy online opening
- Predictable maturity value
Is RD Interest Taxable?
Yes.
- Interest earned is fully taxable.
- TDS is applicable if the total interest crosses the threshold.
- Submit Form 15G/15H if eligible.
- Declare interest in your ITR.
RD does not qualify under Section 80C.
Who Should Choose RD?
RD is suitable for:
✔ Salary earners
✔ Students
✔ First-time investors
✔ Risk-averse individuals
✔ People saving for short-term goals
FAQs on Types of RD
1. How many types of RD accounts are there?
A. Main types include Regular RD, Post Office RD, NRE RD, NRO RD, Flexi RD, and Minor RD.
2. Which RD is safest?
A. Post Office RD is government-backed. Bank RDs are also low risk.
3. Can NRIs open RD?
A. Yes, through NRE or NRO RD accounts.
4. Is RD better than FD?
A. RD is better for monthly savings. FD is better for a lump-sum investment.
5. What is the minimum deposit for RD?
A. It can start from ₹100, depending on the bank.
Security & Smart Saving Tips
- Compare RD interest rates before opening.
- Enable auto-debit to avoid missing installments.
- Keep track of the maturity date.
- Never share OTP or banking credentials.
Conclusion
There are multiple types of Recurring Deposit accounts in India, including regular bank RD, Post Office RD, NRE/NRO RD, Flexi RD, and minor RD accounts.
Each type serves a different purpose, but all offer low risk, guaranteed returns, and disciplined monthly savings.
Before choosing an RD in 2026, compare interest rates, tenure flexibility, and your financial goals to select the right option for you.
