Question 1

Which bank gives a better RD rate — Indian Bank or Post Office?

Accepted Answer

Indian Bank's RD rates span 5.75%–6.50% p.a. while Post Office spans 6.70%–6.70% (as on 2025-09). The 'better' bank depends on your exact tenor — use the calculator above to compare on the slab you actually plan to book.

Question 2

Are Indian Bank and Post Office RDs equally safe?

Accepted Answer

Both Indian Bank and India Post Office are RBI-regulated commercial banks (or sovereign-backed in the case of Post Office). RDs with both are DICGC-insured up to ₹5 lakh per depositor per bank. Beyond that limit, deposit safety depends on the bank's capital adequacy and asset quality.

Question 3

What is the senior citizen RD bonus difference?

Accepted Answer

Indian Bank adds 50 basis points (0.50%) on its general slabs for resident depositors aged 60+. Post Office adds 0 bps (0.00%). Toggle the senior citizen checkbox in the calculator to see the maturity impact.

Question 4

How is RD interest compounded at Indian Bank and Post Office?

Accepted Answer

Both Indian Bank and Post Office compound Recurring Deposit interest quarterly, in line with the standard Indian RD methodology. The calculator uses the per-month equivalent of the quarterly rate.

Question 5

Should I split my RD across Indian Bank and Post Office?

Accepted Answer

Splitting is mainly useful for two reasons: (1) staying under the ₹5 lakh DICGC cap per bank, and (2) capturing the best slab at each bank (e.g. Indian Bank might lead at 1-year, Post Office at 3-year). Use the calculator to see whether the split actually improves the blended maturity vs concentrating with the higher-rate bank.

Tenor	General (% p.a.)	Senior (% p.a.)
6 – 12 months	5.75	6.25
1 – 2 years	6.50	7.00
2 – 3 years	6.50	7.00
3 – 5 years	6.25	6.75
5 – 10 years	6.10	6.60

Indian Bank vs Post Office RD

Indian Bank vs Post Office — RD side-by-side

Indian Bank RD Interest Rates

Post Office RD Interest Rates

// indian bank vs post office at a glance

// frequently asked questions