When it comes to risk-free investments, a recurring deposit is one of the popular options available to you. Under this investment scheme, you need to deposit a fixed amount every month for a specific period of time. You will earn interest on the invested amount as per the interest rate offered by the bank where the RD account is opened.
Interest Rates Offered on RDs by Banks Operating in the Country
Listed below are the interest rates offered to the general public by various banks operating in the country that allows you to open a recurring deposit account with them. The rates have been segregated according to various investment periods. Scroll through to get an idea of the rates offered:
* Rates as of July '19
|1 year||2 years||3 years||4 years||5 years||More than 5 years|
|Bank of Maharashtra||6.50||6.50||6.50||6.50||6.25||6.25|
|Bank of Baroda||6.45||6.55||6.45||6.35||6.25||6.25|
|Bank of India||6.70||6.70||6.50||6.50||6.50||6.35|
|Central Bank of India||6.65||6.45||6.45||6.45||6.45||6.45|
|City Union Bank of India||6.75||6.60||6.60||6.60||6.60||6.50|
|Indian Overseas Bank||6.60||6.75||6.80||6.80||6.80||6.80|
|Karur Vysya Bank||7.10||7.05||7.00||7.00||7.00||7.00|
|Laxmi Vilas Bank||7.75||7.85||7.85||7.85||7.85||7.85|
|Oriental Bank of Commerce||6.85||6.75||6.70||6.70||6.75||6.75|
|Punjab National Bank||6.80||6.75||6.25||6.25||6.25||6.25|
|Punjab & Sind Bank||6.85||6.75||6.55||6.55||6.55||6.55|
|South Indian Bank||7.40||7.00||7.25||7.25||7.25||7.25|
|State Bank of India||6.80||6.80||6.80||6.80||6.85||6.85|
|Tamilnad Mercantile Bank Ltd||7.25||7.00||6.90||6.90||6.90||6.90|
|Union Bank of India||6.75||6.60||6.60||6.70||6.70||6.70|
|United Bank of India||6.50||6.25||6.25||6.00||6.00||6.00|
Best Recurring Deposit Schemes in India with Highest Interest Rates*
Here are some banks that offer the best interest rates for RD schemes:
- Deutsche Bank gives 8.00% p.a. for 5-year deposits, which is one of the best RD rates in India.
- For 1-year tenure, Lakshmi Vilas Bank offers the highest returns, at 7.75% p.a., followed by IndusInd Bank at 7.60%.
- For 2-year tenure, the highest interest rates are offered by Lakshmi Vilas Bank at 7.85% p.a. and then by IndusInd Bank at 7.75%.
- For 3-year and 4-year tenures, you earn the best RD interest rates with Lakshmi Vilas Bank at 7.85% p.a.
- Other banks to consider for high returns on your RD savings are: IndusInd Bank (rate of interest 7.25% to 7.60%) and Bandhan Bank (rate of interest: 7.35% to 7.65%).
*All rates as on 30 July 2019
Given the fact that banks can change the rates at their discretion, it is better to enquire with the bank authorities before investing in an RD account. The rates mentioned here are applicable as of 7 June 2019.
How is the Interest Under the Recurring Deposit Scheme Calculated?
Under the recurring deposit scheme, interest is calculated after taking into consideration various factors like funds invested, tenure, and the RD scheme selected.
You can calculate the interest by using the RD calculator or the formula mentioned below:
M = R [(1+i) n – 1]/ 1 – (1+i) -1/3
In the formula,
‘M’ stands for maturity value
‘R’ stands for monthly instalment
‘n’ stands for number of quarters
‘i’ stands for rate of interest/400
Read More Article on Recurring Deposit
- How to Open a Recurring Deposit Online?
- Know About Flexi Recurring Deposit Schemes
- Major Differences Between Recurring Deposit and Fixed Deposit
- Tax on Recurring Deposit
- Comparison Between Recurring Deposit and Chit Fund
- Recurring Deposit Interest Rates of All Banks
- How to Open a Recurring Deposit Account Online in SBI
- Monthly Recurring Deposit
- SBI Flexi Recurring Deposit
- PNB Swechha Jama Yojna Flexi Recurring Deposit Scheme
- Bank of India Star Flexi-Recurring Deposit Scheme
- Baroda Samriddhi Half Yearly Recurring Deposit
- Canara Dhanvarsha Flexi Recurring Deposit Scheme
- Union Bank Cumulative Recurring Deposit Scheme
- Union Monthly Plus Recurring Deposit Scheme
- Indian Bank Swarna Nidhi Recurring Deposit Scheme
- Difference Between LIC and Recurring Deposit
- Indian Bank Variable Recurring Deposit Scheme
- Baroda Samriddhi Quarterly Recurring Deposit
- PNB Special Recurring Deposit Scheme
- PNB Lakhpati Deposit Scheme
- Bank of Baroda Yatha Shakti Jama Yojana Scheme