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SBI and Post Office who are better in recurring deposits, see latest interest rates

State Bank of India (SBI) and Post Office encourage their customers for Recurring Deposit (RD). For many investors, this is an easy means of small savings. The installment amount once fixed for RD account cannot be changed. Explain that a Recurring Deposit (RD) account is a type of fixed deposit offered by banks. Come find out who is better in RD of State Bank of India (SBI) and Post Office…

SBI RD interest rates vary from 5% -5.4% for the general public and 50 basis points additional interest rate for senior citizens. These rates are effective from 8 January 2021. Post offices offer RD 5.8% interest annually compounding quarterly. These rates are effective from 1 January 2021.




SBI Recurring Deposits have a maturity period of 1 to 10 years, but post offices only give RD for 5 years.

SBI RD account can be opened by check / cash, but an RD account at a post office can be opened by cash only.

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You can open online SBI RD account through net banking facility, but to open a post office RD account you have to go to the post office branch.

In SBI RD account, customers are required to make a minimum monthly installment of Rs 100 or in multiples of 10. There is no maximum limit on deposits, but the minimum amount required to open an RD account at the post office is Rs 10 per month or any amount in multiples of 5. However, there is no maximum investment limit.




The government decides the 5-year RD rate for the post office. However, the interest rates for SBI vary from year to year.

SBI’s RD rates

More than 1 year and less than 2 years – 4.9%

2 years to 3 years – 5.1%

3 years to less than 5 years – 5.3%

5 years and up to 10 years – 5.4%

The latest interest rate on the Post Office Recurring Deposit Account (RD) is 5.8% pa (compounded quarterly).

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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