The best way to describe recurring deposit (RD) account is that they are similar to fixed deposits (FD) but with a little difference. Both RD and FDs are offered for fixed tenors. However, the difference between the two is that in case of RD, you do not need any lump sum for investment. The major charm of RD is that you can make an investment in monthly, quarterly, half-yearly and annual instalments in these accounts, and still manage to earn interest rates like FDs. However, before you start investing, you must compare first who offers the best rates on RDs to avail maximum gains. 

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On RDs, you earn a specified interest rate for a scheduled time. When you decide to opt for RDs, you will have to choose your tenure. In India Post's RD scheme, the tenure is fixed at 5 years. However, RD tenors range from 1 year to a maximum 10 years in case of commercial banks. 

You will have to deposit a fixed amount every month in RD. The interest rates on RD remains same throughout the term.

Let's compare Post Office recurring deposit scheme with some major lenders like SBI, HDFC Bank and ICICI Bank. 

India Post

Currently, there is one 5-year recurring deposit scheme, which is allowing customers to just invest Rs 10 per month and earn 7.20% interest rates. This is offered by India Post. 

According to the India Post website, interested individuals should know that for opening a five-year recurring deposit account, they need to invest a minimum amount of Rs 10 per month. They can also make monthly deposits in multiples of Rs 5, and depositor can have more than one account in his/her own name, or jointly with another person.

SBI

The interest rates on RD offered by SBI are same as offered in term deposits. At SBI, a five year or more recurring depositaccount, will help you earn 6.25% interest. In case of senior citizen, it is 6.75%.

HDFC Bank

Here, effective from July 22, 2019, you can earn 7.25% interest rate on RD chosen for a tenure of 5 years. A senior citizen and NRI will earn some 7.50% and 7% interest rate respectively.

ICICI Bank: 

This bank has launched a flexible recurring deposit scheme called as iWish.  At ICICI Bank, for a recurring deposit for upto 5 years and above, you can earn interest at 7%. For senior citizens, the interest rate is 7.50%.