Last reviewed: 9 October 2026. Rates effective from 15 December 2025, checked on SBI’s official website.
SBI RD interest rates range from 6.05% to 6.40% a year for the general public, because State Bank of India pays recurring deposits the same rate it pays on term deposits of the same tenure. SBI’s recurring deposit page says the rate is the one applicable to term deposits for the public and for senior citizens, and its current card for retail deposits below ₹3 crore took effect on 15 December 2025. The best slot for a regular saver is 2 years to less than 3 years at 6.40%.
This page covers the rates that matter for an RD, what ₹5,000 a month grows to, the penalty for missed instalments and how SBI compares with two other large banks.
SBI RD interest rates for October 2026
An SBI RD can run from 12 months to 120 months, so only the term deposit buckets of one year and above apply. The table shows those buckets for deposits below ₹3 crore, per annum. The best bucket for regular savers is 2 years to less than 3 years at 6.40%.
| RD tenure | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 1 year to less than 2 years | 6.25 | 6.75 |
| 2 years to less than 3 years | 6.40 | 6.90 |
| 3 years to less than 5 years | 6.30 | 6.80 |
| 5 years up to 10 years | 6.05 | 7.05* |
*SBI’s rate card shows 7.05% for senior citizens on 5 to 10 years, and says this figure includes an extra 0.50% under its SBI We-care deposit scheme. The RD page does not say whether We-care covers recurring deposits, so a senior citizen opening a long RD should confirm the rate at the branch or on YONO before starting. Without that premium, the safest senior figure to rely on is 6.90% for 2 to 3 years.
Why the longest RD is not the best one
SBI pays less for 5 years and above than for 2 to 3 years. A regular saver who picks a 24 to 35 month RD earns 0.35 percentage points more than one who commits for 5 years. Longer is only better if you value the discipline of a long savings habit more than the rate.
What your SBI RD earns
Indian banks compound RD interest every quarter. Each monthly instalment earns interest for the months left until maturity, so the maturity value is the sum, over every instalment, of P x (1 + r/4)^(4 x months remaining / 12), where P is the instalment and r the annual rate as a decimal. We ran the numbers in code for ₹5,000 a month.
| Scenario (₹5,000 a month) | Rate | Total deposited | Maturity amount | Interest earned |
|---|---|---|---|---|
| 1 year, general public | 6.25% | ₹60,000 | ₹62,059.66 | ₹2,059.66 |
| 1 year, senior citizen | 6.75% | ₹60,000 | ₹62,226.90 | ₹2,226.90 |
| 2 years, general public (best bucket) | 6.40% | ₹1,20,000 | ₹1,28,291.03 | ₹8,291.03 |
| 5 years, general public | 6.05% | ₹3,00,000 | ₹3,50,778.17 | ₹50,778.17 |
These are pre-tax figures and assume every instalment is paid on time. SBI’s own calculation may differ by a few rupees because of day counts.
Things to know before you open an SBI RD
- Minimum instalment: ₹100 a month, then in multiples of ₹10.
- Tenure: 12 months to 120 months.
- Late instalments: SBI charges ₹1.50 per ₹100 per month of delay on RDs of 5 years or less, and ₹2 per ₹100 per month on longer RDs. The penalty cannot be more than the interest you earn.
- Missed instalments: If six instalments in a row are not paid, SBI closes the RD early and pays out the balance. A ₹10 charge applies at maturity if three or more consecutive instalments were missed and never made good.
- Premature closure: The penalty is 0.50% on RDs up to ₹5 lakh and 1% above ₹5 lakh, taken off the rate for the period the money stayed with the bank.
- Tax: RD interest is taxed at your slab rate, and the bank deducts TDS at 10% once your interest crosses the limit set under income tax rules. If your income is below the taxable limit, submit the no-deduction declaration at the start of the financial year.
- Insurance: DICGC covers deposits up to ₹5 lakh per depositor per bank, principal and interest together.
How SBI RD interest rates compare
We checked each bank’s official RD or term deposit rate page on 9 October 2026, for deposits below ₹3 crore.
| Bank | 1-year RD | 5-year RD | Best regular RD rate |
|---|---|---|---|
| SBI | 6.25% | 6.05% | 6.40% (2 to under 3 years) |
| ICICI Bank | 6.25% | 6.50% | 6.50% (above 3 years to 10 years) |
| Bank of Baroda | 6.25% | 6.30% | 6.30% (above 3 years to 5 years) |
All three pay the same on a one-year RD. For a five-year habit, ICICI Bank pays 0.45 percentage points more than SBI. SBI’s edge is its low ₹100 entry point and its branch reach. If you prefer a lump sum, see our SBI FD interest rates page, and our rating methodology explains how we compare deposits.
How to open an SBI RD
Savings account holders can open an RD in a few minutes on YONO or SBI internet banking and set up an automatic monthly debit, which also avoids late penalties. You can also open one at any branch with KYC documents. Start from SBI’s official recurring deposit page.
Frequently asked questions
What are the current SBI RD interest rates?
6.25% for 1 to 2 years, 6.40% for 2 to 3 years, 6.30% for 3 to 5 years and 6.05% for 5 to 10 years for the general public. Senior citizens get more on every tenure.
Is the SBI RD rate the same as the FD rate?
Yes. SBI’s RD page says the rate is the one that applies to term deposits of the same tenure.
What is the minimum amount for an SBI RD?
₹100 a month, with higher amounts in multiples of ₹10.
What happens if I miss an SBI RD instalment?
You pay a late fee of ₹1.50 or ₹2 per ₹100 per month, depending on tenure. Six missed instalments in a row lead to early closure.
Where can I compare other bank RDs?
Our recurring deposit section has bank-by-bank pages.
This article is for informational purposes only and does not constitute financial advice. Rates change often; confirm the latest rates on the bank’s website before you invest.
