Is there any RBI guideline or rule or guideline available for Recurring Deposits interest calculation compounding period for Indian Banks. I find it different for different banks in India and the surprising fact is that they don't tell about it explicitly anywhere about it in any of the terms and conditions.

Any idea or clues to this will be helpful. Thanks in advance.


To my knowledge there is no guideline from RBI. The key difference comes in when Bank's credit the interest to the account. Most banks use Quarterly compounding of the interest and this results in more interest to the Account Holder. Other frequencies are yearly and end of term as well.

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