State Bank of India RD (Recurring Deposit) Interest Rate 2026
Reviewed by: Fibe Research Team
- Updated on: 16 Jul 2026
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Reviewed by: Fibe Research Team
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SBI, one of the largest banks in India, backs its schemes with decades of strong returns and consistent performance. It offers a diverse range of deposit schemes to support both long and short-term investment goals. One such option is the SBI Recurring Deposit.
SBI RD rates depend on your age and the tenure you pick. You can start with just ₹100 a month and slowly build your savings over time. It’s an easy and consistent way to put money aside regularly.
Quick Overview
| Key Details | Information |
|---|---|
| Minimum deposit | ₹100 per month |
| Maximum deposit | No upper limit |
| Tenure | 12 to 120 months |
| Interest Rate (General) | 6.50% – 7.00% p.a. |
| Interest Rate (Senior Citizens) | 7.00% – 7.50% p.a. |
| Interest payout | Compounded quarterly |
| Premature withdrawal | Allowed with penalty |
| Loan facility | Available against RD |
[Source: SBI RD overview – Official SBI RD website]
Below are given RD rates in SBI as of the year 2026:
| Tenure | General Citizens | Senior Citizens |
|---|---|---|
| 1 year to 1 year 364 days | 6.80% | 7.30% |
| 2 years to 2 years 364 days | 7.00% | 7.50% |
| 3 years to 4 years 364 days | 6.50% | 7.00% |
| 5 years to 10 years | 6.50% | 7.50% |
The SBI Recurring Deposit scheme comes with many beneficial features, like an investment limit that you can easily handle at a low interest rate.
Here are the features you can enjoy:
Opening an SBI Recurring Deposit account is simple. As long as you meet basic eligibility and have your documents ready, the process is quick and hassle-free.
You can open an SBI RD account if you fall under any of these categories:
SBI will ask for basic verification before activating the account.
You will need a few standard documents to open your SBI RD account:
In some cases, the bank may ask for additional documents. It’s always a good idea to check with your branch before applying.
[Source: SBI RD Eligibility and documents – Cleartax]
The maturity amount of SBI RD depends on several factors like the monthly deposit amount, applicable interest rate and other related elements.
SBI provides an easy-to-use RD calculator on its official website to help customers estimate returns and plan their savings more easily. To calculate it manually, use the following formula:
M = R × [ (1 + i)^n – 1] ÷ (1 – (1 + i)^(-1/3))
Where:
Suppose you open an SBI Recurring Deposit and invest ₹10,000 every month for 3 years. If the applicable interest rate is around 6.50% per annum, the maturity amount will be approximately ₹3.98 lakhs.
*This is just an estimate. The final amount may vary slightly depending on compounding and the exact tenure you choose.
[Calculated using the Groww RD calculator]
Opening an RD account online with SBI is quick and can be done in a few steps:
Step 1: Just sign in to your SBI internet banking account using your credentials
Step 2: Navigate to ‘Deposits and Investments’
Step 3: Click on ‘Fixed Deposits’ and then choose ‘e RD’
Step 4: Select ‘Open New Account’
Step 5: Fill in the monthly deposit amount, tenure and other required details
Step 6: Review the details and click on ‘Submit’
Step 7: Your RD account will be opened and you can view it in ‘Account Summary’
You can open an RD account offline as well:
Step 1: Go to your nearest SBI branch where you have a savings account
Step 2: Ask for the RD account opening form and fill in your details
Step 3: Provide the required KYC documents along with the form
Step 4: Deposit the first monthly amount
Step 5: Once verified, your RD account will be opened
With regular contributions, an SBI RD helps you build savings over time. While there may be small penalties for early withdrawal or missed payments, it remains a simple and reliable way to save consistently.
You have to pay taxes on the interest you earn on your SBI RD. The bank will deduct 10% out of your total interest from deposits if it goes over ₹40,000 in a financial year. This limit is higher for people over 60, at ₹50,000. The TDS rate can go up to 20% if you don’t give your PAN information. There is no TDS taken out if your interest income is below the limit. You may have to pay more tax or get a refund when you file your taxes, depending on your income slabs.
[Source: TDS on SBI RD – RD FAQs]
With smart investment in SBI Recurring Deposit, you can ensure your financial well-being. Although SBI imposes penalties for premature withdrawals and late payments, the advantages of regular savings and assured returns make it an ideal choice for both new and experienced investors.
RDs are a long-term investment method and prematurely withdrawing the amount can decrease its benefits. If you are ready to invest in RD and need urgent cash, the Fibe Instant Cash Loan is here for you. Get up to ₹10 lakhs in just a few minutes with flexible repayment tenure. Download the Fibe App today!
The latest SBI Recurring Deposit interest rate ranges between 6.50% to 7.00% for the general public and 7.00% to 7.50% for senior citizens.
You can close your SBI RD account by:
Yes, you have to pay a nominal penalty fee for early withdrawals. Also, you cannot withdraw a partial amount from SBI’s RD scheme.
No, your interest rate stays the same once you open the RD. Even if the bank changes rates later, your existing RD will continue with the rate it started with.
No, SBI RD accounts usually start from a minimum tenure of 12 months. So, you cannot open an RD for just 6 months.