{"id":10770,"date":"2026-02-26T13:00:14","date_gmt":"2026-02-26T13:00:14","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&p=10770"},"modified":"2026-02-27T07:52:55","modified_gmt":"2026-02-27T07:52:55","slug":"types-of-recurring-deposit-overview-of-rd-list-of-rd-accounts-in-india-2026-guide","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/types-of-recurring-deposit-overview-of-rd-list-of-rd-accounts-in-india-2026-guide\/","title":{"rendered":"Types of Recurring Deposit \u2013 Overview of RD & List of RD Accounts in India (2026 Guide)"},"content":{"rendered":"\n

A Recurring Deposit (RD)<\/strong> 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.<\/p>\n\n\n\n

But did you know there are different types of RD accounts in India<\/strong>? Banks and post offices offer multiple variations based on flexibility, eligibility, and user profile.<\/p>\n\n\n\n

In this 2026 guide, we\u2019ll explain the overview of RD, its types, and the list of RD accounts available in India<\/strong>.<\/p>\n\n\n\n

Quick Summary: Recurring Deposit (RD)<\/h2>\n\n\n\n
Feature<\/th>Details<\/th><\/tr><\/thead>
Investment Type<\/td>Monthly deposit<\/td><\/tr>
Risk Level<\/td>Low<\/td><\/tr>
Returns<\/td>Fixed & guaranteed<\/td><\/tr>
Tenure<\/td>6 months to 10 years<\/td><\/tr>
Compounding<\/td>Usually quarterly<\/td><\/tr>
Loan Facility<\/td>Available in most banks<\/td><\/tr>
Tax Benefit<\/td>No 80C benefit<\/td><\/tr>
Best For<\/td>Monthly savings goals<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

What is a Recurring Deposit (RD)?<\/h1>\n\n\n\n

A Recurring Deposit (RD) is a term deposit where:<\/p>\n\n\n\n

    \n
  • You deposit a fixed amount every month<\/li>\n\n\n\n
  • Interest is compounded quarterly<\/li>\n\n\n\n
  • You receive principal + interest at maturity<\/li>\n<\/ul>\n\n\n\n

    Unlike Fixed Deposit (FD), you don\u2019t need a lump sum to start.<\/p>\n\n\n\n

    RD is ideal for:<\/p>\n\n\n\n

    \u2714 Salaried employees
    \u2714 Students
    \u2714 Small business owners
    \u2714 First-time investors<\/p>\n\n\n\n

    Types of Recurring Deposit in India<\/h1>\n\n\n\n

    Let\u2019s look at the different types of RD accounts available in India.<\/p>\n\n\n\n

    Regular Bank Recurring Deposit<\/h2>\n\n\n\n

    This is the most common type of RD.<\/p>\n\n\n\n

    Features:<\/h3>\n\n\n\n
      \n
    • Fixed monthly deposit<\/li>\n\n\n\n
    • Tenure from 6 months to 10 years<\/li>\n\n\n\n
    • Auto-debit facility<\/li>\n\n\n\n
    • Loan against RD is available<\/li>\n<\/ul>\n\n\n\n

      Available in:<\/p>\n\n\n\n

        \n
      • SBI<\/li>\n\n\n\n
      • HDFC Bank<\/li>\n\n\n\n
      • ICICI Bank<\/li>\n\n\n\n
      • Axis Bank<\/li>\n\n\n\n
      • Canara Bank<\/li>\n\n\n\n
      • Union Bank<\/li>\n\n\n\n
      • Indian Overseas Bank<\/li>\n\n\n\n
      • PNB and other banks<\/li>\n<\/ul>\n\n\n\n

        Best for: Salaried individuals who want disciplined monthly savings.<\/p>\n\n\n\n

        Post Office Recurring Deposit (5-Year RD)<\/h2>\n\n\n\n

        Offered by India Post and backed by the Government of India.<\/p>\n\n\n\n

        Features:<\/h3>\n\n\n\n
          \n
        • Fixed 5-year tenure<\/li>\n\n\n\n
        • Quarterly compounding<\/li>\n\n\n\n
        • Loan facility available<\/li>\n\n\n\n
        • Very low minimum deposit (\u20b9100)<\/li>\n<\/ul>\n\n\n\n

          Best for: Conservative investors looking for government-backed safety.<\/p>\n\n\n\n

          NRE Recurring Deposit (For NRIs)<\/h2>\n\n\n\n

          Available for Non-Resident Indians.<\/p>\n\n\n\n

          Features:<\/h3>\n\n\n\n
            \n
          • Opened under an NRE account<\/li>\n\n\n\n
          • Deposit in Indian Rupees<\/li>\n\n\n\n
          • Repatriable funds<\/li>\n\n\n\n
          • Interest may be tax-free in India (subject to rules)<\/li>\n<\/ul>\n\n\n\n

            Best for: NRIs earning income abroad.<\/p>\n\n\n\n

            NRO Recurring Deposit (For NRIs)<\/h2>\n\n\n\n

            For managing income earned in India.<\/p>\n\n\n\n

            Features:<\/h3>\n\n\n\n
              \n
            • Deposit from Indian income<\/li>\n\n\n\n
            • Interest taxable<\/li>\n\n\n\n
            • Repatriation limits apply<\/li>\n<\/ul>\n\n\n\n

              Best for: NRIs with Indian rental or investment income.<\/p>\n\n\n\n

              Flexi Recurring Deposit (Flexible RD)<\/h2>\n\n\n\n

              Offered by select banks.<\/p>\n\n\n\n

              Features:<\/h3>\n\n\n\n
                \n
              • Flexible monthly deposit amount<\/li>\n\n\n\n
              • Linked to a savings account<\/li>\n\n\n\n
              • Excess balance automatically transferred<\/li>\n<\/ul>\n\n\n\n

                Best for: Individuals with variable monthly income.<\/p>\n\n\n\n

                RD for Minors<\/h2>\n\n\n\n

                Opened in the name of a minor under a guardian.<\/p>\n\n\n\n

                Features:<\/h3>\n\n\n\n
                  \n
                • Encourages savings habits early<\/li>\n\n\n\n
                • Guardian manages the account<\/li>\n\n\n\n
                • Converts to regular RD after 18 years<\/li>\n<\/ul>\n\n\n\n

                  Best for: Parents planning education funds.<\/p>\n\n\n\n

                  List of RD Accounts in India (2026)<\/h1>\n\n\n\n

                  Here are major institutions offering RD accounts:<\/p>\n\n\n\n

                  Public Sector Banks<\/h3>\n\n\n\n
                    \n
                  • State Bank of India (SBI RD)<\/li>\n\n\n\n
                  • Punjab National Bank (PNB RD)<\/li>\n\n\n\n
                  • Bank of Baroda RD<\/li>\n\n\n\n
                  • Canara Bank RD<\/li>\n\n\n\n
                  • Union Bank RD<\/li>\n\n\n\n
                  • Indian Bank RD<\/li>\n\n\n\n
                  • Indian Overseas Bank RD<\/li>\n<\/ul>\n\n\n\n

                    Private Sector Banks<\/h3>\n\n\n\n
                      \n
                    • HDFC Bank RD<\/li>\n\n\n\n
                    • ICICI Bank RD<\/li>\n\n\n\n
                    • Axis Bank RD<\/li>\n\n\n\n
                    • Kotak Mahindra Bank RD<\/li>\n\n\n\n
                    • Yes Bank RD<\/li>\n<\/ul>\n\n\n\n

                      Government-Backed Scheme<\/h3>\n\n\n\n
                        \n
                      • Post Office 5-Year RD<\/li>\n<\/ul>\n\n\n\n

                        Each bank may offer slightly different interest rates and minimum deposit requirements.<\/p>\n\n\n\n

                        Key Features of Recurring Deposit<\/h1>\n\n\n\n

                        Fixed Monthly Contribution<\/h2>\n\n\n\n

                        Start with as low as \u20b9100 (varies by bank).<\/p>\n\n\n\n

                        Guaranteed Returns<\/h2>\n\n\n\n

                        Interest rate fixed at the time of opening.<\/p>\n\n\n\n

                        Flexible Tenure<\/h2>\n\n\n\n

                        From 6 months up to 10 years.<\/p>\n\n\n\n

                        Loan Facility<\/h2>\n\n\n\n

                        Most banks allow a loan against RD (75%\u201395% of the balance).<\/p>\n\n\n\n

                        Premature Closure<\/h2>\n\n\n\n

                        Allowed with a penalty.<\/p>\n\n\n\n

                        Benefits of Recurring Deposit<\/h1>\n\n\n\n
                          \n
                        • Builds a disciplined saving habit<\/li>\n\n\n\n
                        • Low-risk investment<\/li>\n\n\n\n
                        • Suitable for short- and medium-term goals<\/li>\n\n\n\n
                        • Easy online opening<\/li>\n\n\n\n
                        • Predictable maturity value<\/li>\n<\/ul>\n\n\n\n

                          Is RD Interest Taxable?<\/h1>\n\n\n\n

                          Yes.<\/p>\n\n\n\n

                            \n
                          • Interest earned is fully taxable.<\/li>\n\n\n\n
                          • TDS is applicable if the total interest crosses the threshold.<\/li>\n\n\n\n
                          • Submit Form 15G\/15H if eligible.<\/li>\n\n\n\n
                          • Declare interest in your ITR.<\/li>\n<\/ul>\n\n\n\n

                            RD does not qualify under Section 80C.<\/p>\n\n\n\n

                            Who Should Choose RD?<\/h1>\n\n\n\n

                            RD is suitable for:<\/p>\n\n\n\n

                            \u2714 Salary earners
                            \u2714 Students
                            \u2714 First-time investors
                            \u2714 Risk-averse individuals
                            \u2714 People saving for short-term goals<\/p>\n\n\n\n

                            FAQs on Types of RD<\/h1>\n\n\n
                            \n
                            \n
                            \n

                            1. How many types of RD accounts are there?<\/h3>\n
                            \n\n

                            A. Main types include Regular RD, Post Office RD, NRE RD, NRO RD, Flexi RD, and Minor RD.<\/p>\n\n<\/div>\n<\/div>\n

                            \n

                            2. Which RD is safest?<\/h3>\n
                            \n\n

                            A. Post Office RD is government-backed. Bank RDs are also low risk.<\/p>\n\n<\/div>\n<\/div>\n

                            \n

                            3. Can NRIs open RD?<\/h3>\n
                            \n\n

                            A. Yes, through NRE or NRO RD accounts.<\/p>\n\n<\/div>\n<\/div>\n

                            \n

                            4. Is RD better than FD?<\/h3>\n
                            \n\n

                            A. RD is better for monthly savings. FD is better for a lump-sum investment.<\/p>\n\n<\/div>\n<\/div>\n

                            \n

                            5. What is the minimum deposit for RD?<\/h3>\n
                            \n\n

                            A. It can start from \u20b9100, depending on the bank.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n

                            Security & Smart Saving Tips<\/h1>\n\n\n\n
                              \n
                            • Compare RD interest rates before opening.<\/li>\n\n\n\n
                            • Enable auto-debit to avoid missing installments.<\/li>\n\n\n\n
                            • Keep track of the maturity date.<\/li>\n\n\n\n
                            • Never share OTP or banking credentials.<\/li>\n<\/ul>\n\n\n\n

                              Conclusion<\/h1>\n\n\n\n

                              There are multiple types of Recurring Deposit accounts in India<\/strong>, including regular bank RD, Post Office RD, NRE\/NRO RD, Flexi RD, and minor RD accounts.<\/p>\n\n\n\n

                              Each type serves a different purpose, but all offer low risk, guaranteed returns, and disciplined monthly savings<\/strong>.<\/p>\n\n\n\n

                              Before choosing an RD in 2026, compare interest rates, tenure flexibility, and your financial goals to select the right option for you.<\/p>\n\n\n\n

                              <\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-10770","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/10770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}