Recurring Deposit is the most popular options for the risk averse investors. In a recurring deposit scheme, investors will have to make deposits of a fixed amount each month for a fixed tenure. The investment amount will earn interest which will be returned to the customer after maturity. Recurring deposit will help you make disciplined investments and is an easy way to get safe and good returns on your money.
How is the Interest for a Recurring Deposit Scheme Calculated?
The interest rate for a recurring deposit scheme is calculated based on various factors like the money that your deposit every month, the tenure and the RD scheme that you choose. Generally, the interest rate for RD is the highest when you invest for a period varying between 15 months to 24 months. Also, higher interest rates are offered for women and senior citizens by select banks for Recurring Deposit accounts. You can use an online Recurring Deposit Calculator to find out the interest that you will accumulate for the given principal and tenure.
Highest Recurring Deposit Interest Rates
Based on the tenure, here are some of the banks that offer best interest rate for RD schemes.
- Deutsche Bank and Nainital Bank offer an interest rate of 7.25% and 7.50% respectively for recurring deposits of over 5 years tenure.
- For tenure of 1 year,Nainital Bank and DHFL Bank interest rates are 7.50% and 7.75%.
- Nainital Bank offers an interest rate of 7.90% for RD scheme with 2 year tenure.
- For durations of 3 to 4 years, the best interest is offered by Nainital Bank (7.75%), Lakshmi Vilas Bank (7.00%) and Karur Vysya Bank (7.00%).
- The Recurring Deposit scheme offered by Post Office comes with an attractive interest rate of 7.10%.
Best Recurring Deposit Scheme in India
Here are some of the banks that offer very competitive Recurring Deposit schemes with attractive interest and other features.
- Allahabad Bank
Allahabad Bank offers an interest rate of 6.50% - 6.60% for tenures ranging from 180 Days to 2 years for Recurring Deposits.
- ICICI Bank
ICICI Bank has a flexible RD scheme called the iFlexi RD plan. The customer will incur no penalties for delayed monthly payments. The maximum interest rate that is offered for iFlexi RD is 7.10 per cent with tenure options from 13 months to 24 months.
- HDFC Bank
HDFC Bank offers a maximum interest rate at 6.95% for Recurring Deposit schemes. The tenure varies from 12 months to 120 months. One can invest a minimum amount of Rs 1000 and in multiples of 100 thereafter.
- J&K Bank
J&K Bank gives an attractive interest rate of 6.75% for period of 1 to 4 years RD schemes. For period of 5 Years and above, the bank offers an interest rate of 6.75%.
- Axis Bank
Axis Bank RD schemes come with an interest rate of 7.00% for a period of one year to less than 2 years. The recurring deposit can be started with minimum initial deposit amount of Rs 1000 and in multiples of Rs 500 thereafter.
Interest Rates offered By Banks for Recurring Deposits
Here is a list of interest rates offered for recurring deposit schemes by various banks. The interest rates for RD has been grouped according to the tenure and the bank. The interest rates are subject to frequent change, do enquire with the concerned bank before starting a RD account.
* Rates as of Jan '18
|Bank||1 Years||2 Years||3 Years||4 Years||5 Years||5+ Years|
|Bank of Maharashtra||6.25||6.25||6.25||6.00||6.00||6.00|
|Bank of Baroda||6.60||6.65 To 6.50||6.50||6.50||6.50||6.50|
|Bank of India||6.25||6.60||6.50||6.30||6.25||6.25|
|Central Bank of India||6.50||6.60||6.50||6.50||6.50||6.50|
|City Union Bank||7.10||6.85||6.85||6.85||6.85||6.70|
|Indian Overseas Bank||6.25||--||6.25||6.00||6.00||6.00|
|Indusind Bank||6.85||6.50 to 6.75||6.50||6.50||6.50||6.50|
|Karur Vysya Bank||6.75||6.75||7.00||7.00||7.00||7.00|
|Kotak Mahindra Bank||6.60||6.75||6.50||6.25||6.25||6.00|
|Lakshmi Vilas Bank||6.75||6.90||7.00||7.00||7.00||7.00|
|Oriental Bank of Commerce||6.75||6.85||6.50||6.50||6.50||6.50|
|Punjab National Bank||6.60||6.50||6.50||6.25||6.25||6.25|
|Punjab and Sind Bank||6.50||6.50||6.50||6.50||6.50||6.50|
|South Indian Bank||6.00||6.75||6.50||6.50||6.50||6.50|
|State Bank of India||6.25||6.25||6.25 To 6.00||6.00||6.00||6.00|
|Tamilnad Mercantile Bank Ltd||6.90||7.00||6.90||6.90||6.90||6.90|
|Union Bank of India||6.75||6.50||6.50||6.50||6.50||6.50|
|United Bank Of India||6.10||6.00||6.00||6.00||6.00||6.00|
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