Whoever said wishes don’t come true hasn’t explored our offers!

Recurring Deposit Interest Rates

The interest rates on RDs depend on which category you fall under and your choice between different banks. Senior citizens earn a higher rate of interest when compared to regular citizens. There are schemes offered to minors, students and parents to save for the children. These schemes may carry higher rates of interest. There are also special schemes devised to help people reach their goals. Your interest rates also depend on the type of account you hold. A regular savings account will generally earn a higher rate of interest than an NRE/NRO account. The current interest rates available from different banks range between 7% and 9.25% per annum.

Fixed Deposit

Recurring Deposit Interest Rates Comparison

Bank Name RD Interest Rates Senior Citizen RD Rates

Allahabad Bank RD Rates
6.5% to 7% 6.5% to 7%

Andhra Bank RD Rates
6.75% to 7.15% 7.25% to 7.65%

Axis Bank RD Rates
7.25% 7.75%

Bandhan Bank RD Rates
7.75% to 8.25% 8.25% to 8.75%

Bank of Baroda RD Rates
4.5% to 7% 5% to 7.5%

Bank of India RD Rates
6.90% to 7.10% 6.90% to 7.10%

Bank of Maharashtra RD Rates
6.5% to 6.8% 7% to 7.3%

Bharatiya Mahila Bank RD Rates
7.00% to 7.25% 7.50% to 7.75%

Canara Bank RD Rates
7% to 7.3% 7.5% to 8%

Central Bank of India RD Rates
7.25% to 7.50% 7.25% to 7.50%

CitiBank RD Rates
6% - 6.25% 6% - 6.25%

City Union Bank RD Rates
6.7% to 7.1% 6.95% to 7.5%

Corporation Bank RD Rates
7% to 7.10% 7.5% to 7.6%

DBS Bank RD Rates
6.25% to 8% 6.25% to 8%

Dena Bank RD Rates
6.25% to 6.75% 6.25% to 6.75%

Deutsche Bank RD Rates
6% to 7.75% 6.5% to 8%

Dhanalakshmi Bank RD Rates
7% to 7.25% 7.25% to 7.5%

DHFL Bank RD Rates
8.6% 8.6%

Federal Bank RD Rates
7% to 7.35% 7.5% to 7.85%

HDFC Bank RD Rates
6.25% to 7% 6.75% to 7.5%

ICICI Bank RD Rates
6.25% to 7.10% 6.75% to 7.60%

IDBI Bank RD Rates
7% to 7.15% 7.5% to 7.65%

Indian Bank RD Rates
5.75% to 6.5% 6.25% to 7%

Indian Overseas Bank RD Rates
5.75% to 7.25% 6.25% to 7.75%

IndusInd Bank RD Rates
7.25% to 7.35% 7.75% to 8.85%

Jammu and Kashmir Bank RD Rates
7.25% to 7.3% 7.75% to 7.8%

Karnataka Bank RD Rates
7% to 7.25% 7.5% to 7.75%

Karur Vysya Bank RD Rates
7% 7.5%

Kotak Mahindra Bank RD Rates
7% to 7.25% 7% to 7.75%

Lakshmi Vilas Bank RD Rates
7.40% to 7.70% 7.40% to 7.70%

Nainital Bank RD Rates
7.50% to 7.90% 8.00% to 8.40%

Oriental Bank of Commerce RD Rates
7% to 7.15% 7% to 7.15%

Post Office RD Rates
7.40% 7.40%

Punjab and Sind Bank RD Rates
6.6% to 7.1% 7.1% to 7.6%

Punjab National Bank RD Rates
6.8% to 7.2% 7.3% to 7.7%

Saraswat Bank RD Rates
7.15% to 7.25% 7.4% to 7.5%

South Indian Bank RD Rates
7% to 7.50% 7.5% to 8.00%

State Bank of Bikaner and Jaipur RD Rates
6.5% to 6.95% 7% to 7.45%

State Bank of Hyderabad RD Rates
5.5% to 7% 5.5% to 7%

State Bank of India RD Rates
6.5% to 6.95% 7% to 7.45%

State Bank of Mysore RD Rates
6.5% to 7% 7% to 7.5%

State Bank Of Travancore RD Rates
6.5% to 6.95% 7% to 7.45%

Syndicate Bank RD Rates
6.5% to 7% 6.5% to 7%

Tamilnad Mercantile Bank RD Rates
7% to 7.15% 7% to 7.65%

UCO Bank RD Rates
7.25% to 7.5% 7.25% to 7.5%

Union Bank of India RD Rates
7.25% to 7.4% 7.25% to 7.4%

United Bank of India RD Rates
5.75% to 6.75% 5.5% to 6.5%

Vijaya Bank RD Rates
7.00% to 7.50% 7.00% to 8.00%

Yes Bank RD Rates
6.75% to 7.10% 7.25% to 7.6%

Note : Rate range is on the basis of different deposit tenure.

Types of Recurring Deposit Interest Rates

Regular Savings Scheme - Banks offer recurring deposits to Indian citizens above the age of 18 years. Customers can choose to deposit a fixed sum of money for a period of time, usually between 6 months to 10 years. Interest can be computed on simple or compound basis. At the end of the tenure, the lump sum amount can be withdrawn. Some schemes allow you to reinvest the money. You can open a recurring deposit for as little as Rs. 10 per month. The interest rates on the regular recurring deposits range between 7% to 8% per annum.

Junior RD Schemes - Bank’s also offer recurring deposit schemes for kids. Parents or guardians can open these deposits for their children to start saving for their future, education and other needs. Students can also avail of these deposit schemes. Learning to handle finances and the importance of saving at a young age will help inculcate a smart sense of money. The interest earned on these deposits will either be equivalent to the regular RD schemes or be higher to encourage saving amongst the youngsters.

Senior Citizens RD Schemes - Banks offer higher rates of interest for senior citizens. Usually, 0.50% per annum is given over and above the prevailing interest rate. The interest rates range between 7.5% to 9.25% per annum. There are also schemes available that are designed to help senior citizens during their retirement and old age.

NRE/NRO RD schemes - NRE and NRO recurring deposit accounts may be offered a lower interest rate. Furthermore, senior citizens who hold NRE/NRO accounts will not be offered the additional interest rate. These accounts attract around 7.50% interest per annum.

Special RD Schemes - Banks offer different schemes designed to suit the needs and capabilities of a variety of people. These schemes generally carry a higher rate of interest as your goal is more specific. ICICI Bank offers the iWish deposit which allows you to contribute various amounts of money to your RD account. Furthermore, other people can also contribute to help you reach your goals. There are RD schemes with free life insurance available. With certain schemes, you are allowed to withdraw the money in part without breaking the full deposit. Other schemes reward you with a bigger lump sum amount which makes it a worthwhile investment.

Factors That May Affect Recurring Deposit Interest Rates

Type of account - The account you hold will make a difference in the eligible interest rates. Regular savings accounts usually get higher interest than the NRE/NRO accounts. Some banks offer the same interest rates to both account holders.

Tenure - The tenure of your deposit is one of the most important factors in determining the RD interest rate. Medium term deposits generally earn a much higher interest rate. Some banks offer the highest rate on long-term deposits of 10 years. But this is not always the case as some banks also offer the same interest rate on a 1-year deposit as well as a 10-year deposit.

Age - Almost all banks offer a higher rate of interest to senior citizens. This rate is usually 0.5% per annum higher than the regular interest rates. Junior accounts can also stand to earn a higher interest rate. This depends on the bank’s offer on minor accounts.

Choice of bank - Interest rates vary quite a bit between different banks. Currently, the top banks offer recurring deposits starting at 7% per annum interest. Nationalised banks tend to offer a higher interest rate of up to 8% per annum.

Schemes on offer - Banks also have different recurring deposit schemes running. Corporation Bank has a Millionaire Scheme on offer wherein you will receive a million rupees at the end of the scheme. This deposit carries a very high interest rate of 9.25% per annum. So the choice of your deposit scheme will also factor into the interest rate. Depending on the benefits offered with the RD scheme, your interest rate may vary.

Benefits of Recurring Deposit Interest Rates

Safe investment - Recurring deposits carry no risk or very little at all. Choose a stable and secure bank to ensure that your money is safe. Recurring deposits are just a simple investment of your money and do not dabble in the markets. Therefore the interest rate will not fluctuate and you do not stand to lose any money.

Earn while you save - Your deposit will earn interest from your first contribution. The interest accumulated will increase through your tenure. The longer you invest, the more interest you will earn.

Lump sum payout - At the end of the RD tenure, you will receive a lump sum of cash. This amount includes your contribution plus the interest earned. You can use the money to reinvest it or spend it on what you were saving for.

Online access - Most banks offer Internet Banking services which you can use to open deposits, access your accounts and see the progress of your deposit. You can also view the different interest rates offered. You can pick the tenure and deposit amount suitable to you and also earn the highest interest offered.

Loan offers - When you have an RD with a bank, you sometimes get pre-approved loan offers. In other cases, your loan applications will be given preference and your processing might be faster. In addition to this, banks offer concessional interest rates on loans as well.

Recurring Deposit vs Fixed Deposit

Fixed Deposits and Recurring Deposits are among the most popular investment options in India. If you are planning to invest in either of this, you must be aware of the differences between Recurring Deposit and Fixed Deposits. It is very common for the first time investors to get confused between RD and FD. While both Recurring Deposit and fixed deposits are offered by most of the banks in India, each come with their own advantages and disadvantages.

Before investing in a Recurring Deposit or Fixed Deposit scheme, you must be familiar about certain important features of the scheme such as rate of interest and investment limit.

Read on to find more about the differences between a Fixed Deposit and a Recurring Deposit investment scheme.

Tax on Recurring Deposit Interest rates

Recurring Deposit is a very popular investment scheme amongst the risk averse Indians mainly because of the good returns and savings benefits that it offers. In a Recurring Deposit scheme, you will have to deposit a fixed amount of money every month for a predefined period of time and the amount will fetch you interest. But, for interest that you earn on Recurring Deposit investment amounts, 10% will be deducted as TDS. Also, the Tax Deducted at Source (TDS) will be 20% if the Pan information is not provided. The Tax Deducted at Source (TDS) varies depending on your annual income, your age and the interest that your accrue on your RD amount.

Read on to know more about the TDS for your Recurring Deposit Interest Amount

Which Banks Offer the Highest Recurring Deposit Interest Rates in India?

One of the most preferred investment options in India, Recurring Deposit schemes offer good interest returns with almost no risks involved. In a recurring deposit scheme, the investor will be required to make deposits of a fixed amount every month over a fixed tenure. Almost all major private and Government Banks in India offer Recurring Deposit schemes with competitive interest rates. Generally, the interest rate for a RD scheme is based on several factors like tenure, principal amount and the plan that you choose. Also, the interest rate for recurring deposit schemes vary from bank to bank and it is important that you are well informed about the interest rates offered by all major banks so you can zero in the perfect Recurring Deposit plan for investing your hard earned money.

Read on to find more about the best Recurring Deposit interest rates in India

You May be also Interested in:

Read Recurring Deposit Rates news or Enjoy it on the go Google Play

  • All India Bank Depositors Ask for Real Rate of Interest

    The All India Bank Depositors Association has requested the Reserve Bank of India to make sure that a real interest rate of 2.5% to 3% is applicable on post-tax basis on all the term deposits. This was stated by the president of the All India Bank Depositors Association, SS Bhandare. The fall in interest rate is going to be helpful for the depositors.

    20th November, 2016

  • Lower Deposit Rates Leading Depositors to Diversification of Assets

    With the continued fall in bank deposit rates unlikely to stop, a number of people have begun putting their money into mutual funds, currency and tax free bonds to get higher returns.

    Stakeholders predict the current slide will continue as banks face increasing competition from financial instruments like shares and debentures when it comes to higher returns.

    With deposit interest rates sinking, the issue of long-term tax-free bonds has increased, leading to a deceleration in deposits in most banks.

    The Reserve Bank of India has reported that the deceleration percentage has reached 9.3%, the highest rate since 1963-64.

    This would be detrimental to many sectors whose access to funding would be curtailed due to a reduced flow of capital in deposits in the long run.

    However, in spite of this, average saving by households has increased as individuals put their money into other financial instruments that provide higher returns.

    23rd October 2016

  • Interest Earned on Bank Deposits By Indians At An All-Time Low

    Interest gained on small-savings and fixed deposit accounts have hit a record low for millions across the country, as suggested by the Finance Ministry in the the Indian Public Finance Statistics for 2015-16.This has happened despite the interest rates on normal savings account remaining steady at 4% under the NDA government – but with consumer inflation over 5% - which has caused the regular savings holder to lose money.

    The first year of NDA government had seen an interest rate of 8.4% for a fixed deposit of three years, the same as under the erstwhile UPA-ll government. However there has been a visible decline in interest rates over the last one year on such deposits. The five-year fixed deposit – the most conventional planning device of the middle class – now carries a rate of 7.9% as opposed to 8.4% last year. In 2000, the interest had been more than 11%. This also hits those looking to buy a car or going on a trip by utilizing recurring deposit – the rates on these regular savings schemes have dropped to 7.4%.

    14th October 2016

  • RBI Cuts Benchmark Rates in Recent Credit Policy Announcement

    The RBI in its latest credit policy announcement on October 4th cut the benchmark rate by 25 basis points. The repo rate, the interest rate at which RBI lends to commercial banks, was revised from 6.5% to 6.25%. The rate cut has significant ramifications on consumers seeking and paying off loans as well as investors. As far as borrowers are concerned, the RBI Governor Urjit Patel expressed displeasure over banks not effectively passing on rate cuts to consumers. He also expressed his interest in reviewing the current nature of MCLR in determining lending rates. If action is taken swiftly, rate cuts are expected to be transmitted faster to consumers, thereby reducing the cost of borrowing.

    10th October 2016

  • Cut on PPF Interest Rates and Other Saving Schemes Interest Rates

    There has been small reduction in the rates of interests on small saving schemes. The marginal reduction is of 0.1% for the time period between October and December, 2017. Returns on PPF (Public Provident Fund), Sukanya Samriddhi Account and Kisan Vikas Patra will be low.

    On a 5-year RD (Recurring Deposit), the depositors will be getting an interest rate of 7.3%. this has been applicable on and from October 1, 2016. Previously, the depositors could avail an interest rate of 7.4%. The rate of interest applicable on savings deposit remains unchanged at 4%.

    30th September 2016

  • Interest to be Paid Quarterly by Banks as per new RBI Directive

    Scheduled commercial banks have to pay interest on savings accounts quarterly, according to the Reserve Bank of India’s new directive. Currently, interest is paid half yearly for these accounts.

    This will be applicable for money deposits except current account deposits for both domestic, foreign currency as well as NRO and NRE accounts.

    RBI has also directed banks to have a board-approved interest rate policy, with uniform rates for customers and across branches.

    It has also stated that interest to be paid on deposits should adhere to the interest rate schedule that is determined in advance, and there should be no negotiations regarding the same.

    With regard to recurring deposits, banks have been directed to make interest payments for any non-business working days based on the maturity value.

    For deposits that are transferred between branches as a result of takeovers in semi-urban and rural areas, the deposits have to conform to the conditions set by the bank being taken over.

    Commercial banks can decide on the interest rates payable on their savings account, but a uniform rate is to be offered for deposits up to Rs. 1 lakh.

    15th March 2016

  • Fall in Interest Rates for Recurring Deposits Looks Likely

    Short-term small savings interest rates look set to be revised again, with the rates being predicted to drop. Kisan Vikas Patra and the post office’s recurring deposits with terms ranging from 1 to 3 years were reduced as recently as February 16th, 2016. The rates were already lowered by 25 basis points to 8.15% per annum, which were to be effective from April 1st.

    The purpose of the rate lowering was to bring the economy to a lower interest rate. Speculation predicts a rate change of between 50 to 80 basis points.

    The Public Provident Fund, National Savings Certificates, Senior Citizen Savings Scheme are some of the schemes whose rates were not changed.

    There will now be a quarterly calendar for rate revision, with the first of these being on the 15th of March.

    14th March 2016

  • Govt slashes small saving schemes interest rates by 0.25%

    The Government slashed interest rates on small savings schemes by 0.25%. Savings schemes with tenures of 1 year, 2 years and 3 years will come under the new interest rate. The Kisan Vikas Patra and the 5-year recurring deposit scheme will also undergo the change. The revision will be done on a quarterly basis starting from the next financial year. This will help these schemes align with the market rates of the concerned government securities.

    The schemes that will remain unaffected by this change are the 5-year National Savings Certificate (NSC), PPF, Monthly income schemes (MIS), Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana'. However the returns on some of the schemes which have small terms will take a hit. These include PPF, the Monthly Income Scheme (MIS), Post Office Savings Account, Post Office fixed Deposit Scheme, Senior Citizens Savings Scheme, and Sukanya Samriddhi Accounts.

    17th February 2016

Recurring Deposit - Sitemap

 

 

Got something to say? Go on, you can say it; we don't bite. In fact, the more said, the better. The only thing we ask is that you keep it squeaky clean and follow our posting guidelines. Do not disclose sensitive information like your bank account details or phone number (or home planet). Comments posted on the BankBazaar site are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.

  • reTH65gcmBgCJ7k - pingdom check string.
    reTH65gcmBgCJ7k - pingdom check string.
    This Page is BLOCKED as it is using Iframes.