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  • 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 4.5% and 7.90% per annum.

    Recurring Deposit Interest Rates Comparison - 17 Aug 2018

    Bank Name RD Interest Rates Senior Citizen RD Rates
     Allahabad Bank
    Allahabad Bank RD Rates
    6.25% to 6.75% 6.25% to 6.75%
    Andhra Bank
    Andhra Bank RD Rates
    6.25% to 6.85% 6.75% to 7.35%
     Axis Bank
    Axis Bank RD Rates
    6.25% to 6.75% 6.5% to 7.25%
     Bandhan Bank
    Bandhan Bank RD Rates
    6.5% to 7.5% 7% to 8%
    Bank of Baroda
    Bank of Baroda RD Rates
    6.25% to 6.9% 6.75% to 7.4%
    Bank of India
    Bank of India RD Rates
    6.50% to 6.70% 6.50% to 6.70%
    Bank of Maharashtra
    Bank of Maharashtra RD Rates
    6% to 6.25% 6.5% to 6.75%
     Bharatiya Mahila Bank
    Bharatiya Mahila Bank RD Rates
    6.5% to 7% 7% to 7.5%
     Canara Bank
    Canara Bank RD Rates
    6% to 6.5% 6.5% to 7%
     Central Bank of India
    Central Bank of India RD Rates
    4.75% to 6.6% 5.25% to 7.1%
     CitiBank
    CitiBank RD Rates
    5.25% 5.25%
     City Union Bank
    City Union Bank RD Rates
    6.7% to 7.1% 6.95% to 7.5%
     Corporation Bank
    Corporation Bank RD Rates
    6.65% to 6.75% 7.15% to 7.25%
     DBS Bank
    DBS Bank RD Rates
    5.75% to 6.7% 5.75% to 6.7%
     Dena Bank
    Dena Bank RD Rates
    6.5% to 7% 6.5% to 7%
     Deutsche Bank
    Deutsche Bank RD Rates
    6% to 7.5% 6.5% to 7.75%
     Dhanalakshmi Bank
    Dhanalakshmi Bank RD Rates
    6.5% to 6.6% 7% to 7.1%
     DHFL Bank
    DHFL Bank RD Rates
    7.75% 7.75%
     Federal Bank
    Federal Bank RD Rates
    6.5% to 7% 7% to 7.5%
     HDFC Bank
    HDFC Bank RD Rates
    5.75% to 6.75% 6.25% to 7.25%
     ICICI Bank
    ICICI Bank RD Rates
    6.0% to 6.75% 6.5% to 7.25%
     IDBI Bank
    IDBI Bank RD Rates
    6% to 6.65% 6.5% to 7.15%
     Indian Bank
    Indian Bank RD Rates
    4.5% to 4.75% 5% to 6.25%
     Indian Overseas Bank
    Indian Overseas Bank RD Rates
    5.75% to 7.25% 6.25% to 7.75%
     IndusInd Bank
    IndusInd Bank RD Rates
    6.5% to 6.85% 7% to 7.35%
     IndusInd Bank
    Jammu and Kashmir Bank RD Rates
    6.5% to 6.75% 7% to 7.25%
     Karnataka Bank
    Karnataka Bank RD Rates
    6.5% to 6.9% 7% to 7.40%
     Karur Vysya Bank
    Karur Vysya Bank RD Rates
    6.75 to 7% 6.75 to 7.5%
     Kotak Mahindra Bank
    Kotak Mahindra Bank RD Rates
    6% to 6.6% 6.5% to 7.1%
     Lakshmi Vilas Bank
    Lakshmi Vilas Bank RD Rates
    7% 7%
     Nainital Bank
    Nainital Bank RD Rates
    7.50% to 7.90% 8.00% to 8.40%
     Oriental Bank of Commerce
    Oriental Bank of Commerce RD Rates
    6.5% to 6.85% -
     Post Office
    Post Office RD Rates
    6.90% 6.90%
     Punjab and Sind Bank
    Punjab and Sind Bank RD Rates
    6.40% to 6.80% 7.10% to 7.30%
     Punjab National Bank
    Punjab National Bank RD Rates
    6.25% to 6.75% 6.75% to 7.25%
     Saraswat Bank
    Saraswat Bank RD Rates
    6.80% 7.05%
     South Indian Bank
    South Indian Bank RD Rates
    6% to 6.75% 6.75% to 725%
     State Bank of India
    State Bank of India RD Rates
    6.65% to 6.75% 7.15% to 7.25%
     Syndicate Bank
    Syndicate Bank RD Rates
    6.5 to 6.6% 7 to 7.1%
     Tamilnad Mercantile Bank
    Tamilnad Mercantile Bank RD Rates
    5% to 7% 7% to 7.5%
     UCO Bank
    UCO Bank RD Rates
    6.25% to 6.5% 6.25% to 6.5%
     Union Bank of India
    Union Bank of India RD Rates
    6.8% to 7% 6.8% to 7%
     United Bank of India
    United Bank of India RD Rates
    5.75% to 6.25% 5.75% to 6.25%
    Vijaya Bank
    Vijaya Bank RD Rates
    6.25% to 6.5% 6.75% to 7%
     Yes Bank
    Yes Bank RD Rates
    7% to 7.10% 7.50% to 7.6%

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

    Types of Recurring Deposit Interest Rates

    Highest RD 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

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