Different types of recurring deposit (RD)

Explore different types of Recurring Deposit accounts, including RDs for senior citizens, minors, and NRIs. Learn how each RD helps you save systematically.
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Types of RD
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4 mins
19-May-2026

Recurring Deposit (RD) is a popular low-risk investment option in India, offered by various financial institutions. It allows investors to make regular monthly instalments and build savings over time. Different recurring deposit types are available to suit varied financial goals and investment needs. RDs offer flexible tenures ranging from 6 months to 10 years and help in creating a disciplined savings habit for short-term and long-term financial planning.


To diversify your portfolio and potentially earn stable returns, you can also consider investing in fixed deposits.

Pro tip

Bajaj Finance offers attractive Fixed Deposit interest rates of up to 7.40% p.a. for non-senior citizens, and up to 7.75% p.a. for senior citizens, inclusive of an additional rate benefit of up to 0.35% p.a.

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Types of Recurring Deposit Accounts

There are several types of Recurring Deposit (RD) accounts tailored to meet different financial needs and goals:

1. Regular recurring deposit account

Regular RD scheme is widely available in most Indian financial institution. Any individual above the age of 18 can open this account. To get started, you simply need to choose a recurring amount and a tenure. Interest can be calculated on a simple or compound basis. It is important to note that no additional funds can be deposited during the ongoing tenure. The deposit amount and maturity period may vary from different financial institutions.

2. RD account for minors

Some financial institutions allow individuals under 18 years of age to open an RD account under parental or guardian supervision. This provides parents with a financial avenue to invest in their children's education and other essential needs. The returns under this scheme are either comparable to regular RD accounts or potentially higher.

3. RD accounts for senior citizens

Designed specifically for seniors, these RD accounts offer exclusive benefits to individuals of 60 years or above. Most financial institution offer them a higher interest rate than regular rates. The interest gets compounded every quarter.

Bajaj Finance offers an additional interest rate of up to 0.35% p.a. on their FD for senior citizens.

4. NRE/NRI recurring deposit

The NRE recurring deposit scheme requires funds to be deposited from non-residential external (NRE) account. Most Indian banks offer a minimum tenure of 1 year, and the deposit amount and interest rates vary among banks. A major benefit of this scheme is that the interest earned by NRIs is not taxable in India. Some banks also permit variable monthly deposits in their recurring deposit accounts.

5. Flexi RD

Flexi RDs, or flexible recurring deposit schemes, give depositors the freedom to invest different amounts as they wish. You can decide the fixed investment amount and you have an option to choose how much extra to add each time. It is like having the flexibility to adjust your savings based on your financial situation while still earning a steady interest rate.

While the interest on the core amount is fixed, the interest on multiples of the core is calculated based on the investment period.

 

Benefits of RD Account

Different types of recurring deposit account options are designed to help individuals build savings gradually through regular monthly deposits. RD accounts offer flexibility, stable returns, and convenient investment features suitable for both short-term and long-term financial goals.

  • RDs allow individuals to save money regularly, fostering a disciplined savings habit.
  • RDs generally provide higher interest rates compared to regular savings accounts.
  • A recurring deposit account can often be opened with a minimum amount as low as Rs. 100.
  • Some banks may not levy heavy penalties if an RD instalment is missed occasionally.
  • RDs offer flexibility in selecting deposit tenure according to individual financial goals.
  • Opening an RD account is usually simple, especially for existing savings account holders.
  • Many RD accounts also offer premature withdrawal facilities, subject to applicable terms and penalty charges.

Fixed deposit variants

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Fixed Deposit - 60 Months

INTEREST RATES UP TO
7.75% p.a.
Invest Online

Fixed Deposit - Senior Citizen

INTEREST RATES UP TO
7.75% p.a.
Invest Online

Fixed Deposit - Age below 60

INTEREST RATES UP TO
7.40% p.a.
Open FD

Fixed Deposit - Minor

INTEREST RATES UP TO
7.40% p.a.
Open FD

Fixed Deposit - HUF

INTEREST RATES UP TO
7.40% p.a.
Open FD

Fixed Deposit - Sole Proprietor

INTEREST RATES UP TO
7.40% p.a.
Open FD

Conclusion

Recurring deposit is a popular and safe way to invest money in India. It is like a savings plan where you put in money regularly. There are different types of RDs for everyone, like regular ones, ones for minors, seniors’ citizens, and even for NRIs. The flexibility in choosing how much to save and for how long makes RD an attractive investment option. They are good for both short and long-term goals.

Calculate your expected investment returns with the help of our investment calculators

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Frequently asked questions

What is an RD account?

A Recurring Deposit (RD) account is a savings option where you deposit a fixed amount monthly for a chosen tenure. It helps build savings systematically while earning interest similar to fixed deposits.

What is the difference between RD and Flexi RD?

In a regular RD, you must deposit a fixed amount every month, whereas Flexi RD allows variable deposits (minimum fixed amount, plus flexible additions). This gives more flexibility in savings.

Which RD gives more returns?

Both RD and Flexi RD generally offer similar interest rates. However, if you invest higher amounts in a Flexi RD, the effective maturity value could be higher compared to a standard RD.

Which RD is the best?

The best recurring deposit depends on factors such as interest rates, tenure flexibility, minimum deposit amount, withdrawal rules, and the investor’s financial goals and savings preferences.

Why are recurring deposit accounts good for you?

Recurring Deposit accounts help develop disciplined saving habits by allowing regular monthly investments while offering stable returns and flexible tenure options for different financial goals.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.