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

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

Recurring Deposit Interest Rates Bank wise
Bank Tenures (p.a.)
1 year 2 years 3 years 4 years 5 years More than 5 years
Andhra Bank 6.80 6.80 6.75 6.75 6.75 6.50
Allahabad Bank 6.75 6.60 6.50 6.50 6.50 6.50
Axis Bank 6.75 7.20 7.30 7.25 7.00 7.00
Bandhan Bank 7.35 7.65 7.65 7.65 7.65 7.65
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
Canara Bank 6.70 6.40 6.40 6.40 6.00 6.00
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
Corporation Bank 6.80 6.85 6.50 6.50 6.50 6.50
Citi Bank 5.25 5.25 5.25 5.75 5.75 6.00
DBS Bank 7.00 7.00 7.00 7.00 7.50 7.50
Deutsche Bank 6.25 7.00 7.00 7.25 7.50 7.75
Dhanlaxmi Bank 6.00 6.90 6.50 6.50 6.50 6.50
Federal Bank 6.50 6.90 7.00 7.10 7.25 7.25
HDFC Bank 6.60 6.60 7.50 7.40 7.40 7.40
Indian Overseas Bank 6.60 6.75 6.80 6.80 6.80 6.80
ICICI Bank 6.90 7.00 7.30 7.25 7.25 7.25
IDBI Bank 7.10 6.90 6.85 6.85 6.85 6.85
Indian Bank 6.75 6.50 6.75 6.75 6.75 6.90
IndusInd Bank 7.60 7.75 7.35 7.35 7.35 7.25
J&K Bank 7.30 7.30 7.30 7.30 7.30 6.50
Karnataka Bank 7.10 7.00 7.00 7.00 7.00 6.50
Karur Vysya Bank 7.10 7.05 7.00 7.00 7.00 7.00
Kotak Mahindra 7.00 7.00 6.90 6.75 6.50 6.50
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
Saraswat Bank 7.35 7.35 7.15 7.15 7.15 7.00
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
Syndicate Bank 6.60 6.75 7.15 7.15 6.50 6.50
Tamilnad Mercantile Bank Ltd 7.25 7.00 6.90 6.90 6.90 6.90
UCO Bank 6.60 6.50 6.50 6.50 6.50 6.50
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
Yes Bank 7.25 7.75 7.25 7.25 7.25 7.25

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

 

News About Best Recurring Deposit Interest Rates

  • Banks Cut Fixed Deposit Rates After Demonetisation

    Banks have witnessed an unbridled rush ever since the government decided to ban Rs.500 and Rs.1,000 notes in the country. With people lining up to deposit and exchange their old notes, banks have had a windfall of money, with reports estimating that over Rs.5,11,565 crore was collected in the week after the government announced demonetisation. This income has meant that banks can reduce the interest rates on fixed deposits, helping them amass more profits. Most banks have already reduced rates on fixed deposits by 25 to 50 basis points, which could have an impact on accountholders.

    Axis Bank reduced its FD rates to 7% for 1 year and 6.75% for 2/3 year deposits. Similarly, Punjab National Bank, Dena Bank, and Bank of Baroda also reduced their rates, bringing them down to 7% for 1 year. Syndicate Bank seems to be the best option now, thanks to a high interest of 7.3% for a one-year deposit. Even SBI cut the rates to 6.9% for 1 year deposits. A report by Deutsche Bank said that both private and public sector banks can make profits ranging between 5 and 15% post this increase in deposits, with the growth in deposits to be around 10% in the coming months.

    22 November, 2016

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RD Reviews

Page 1 of 50 1 2 3 4 5
  • HDFC Bank Recurring Deposit
    "Easy to apply"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I was paying the RD of Rs. 2000 and i started paying the first month amount by last month. In net banking, there is no option to pay my RD. I have chosen HDFC because I'm the account holder of the same account. There is a lockin period of 6 months and at the end of six month it will get converted into fixed deposit. Interest rate is too low.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Oct 10, 2019
  • review
    review Recurring Deposit
    "It's better"
    STANDARD CHARTERED BANK
    0.5 3.0/5 "Satisfactory"
    With Standard Chartered Bank, am having a recurring deposit because they are providing 7% interest rate. I would suggest them to improve the service. Its been more than 1.5years. They have provided me online access to manage the account. I was doing 3K monthly and have chosen tenure of 1year.
    Was this review helpful? 0
    , bangalore
    Reviewed on Oct 10, 2019
  • Kotak Recurring Deposit
    "Need improvement on customer support"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I am not getting any calls from Kotak to suggest the investment products but whenever my salary credits I used to invest the money with their recurring deposit, monthly I used to invest Rs.1000 and above . I won't recommend this RD for non customers.
    Was this review helpful? 1
    , bangalore
    Reviewed on Sep 14, 2019
  • HDFC Bank Recurring Deposit
    "Good bank for future"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    HDFC gave me very good interest for my recurring deposit, every month I used to invest Rs.3000 for 6 months, finally I about to get Rs.18,000 without interest as per my RD, the bank gave me Rs. 18594 its really good, the online banking is very convenient.
    Was this review helpful? 5
    , bangalore
    Reviewed on Sep 14, 2019
  • HDFC Bank Recurring Deposit
    "Good Investment"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I have a recurring deposit from HDFC. I have a salary account in HDFC hence i have chosen the same bank. I have been investing the money of Rs. 1000 every month and they are providing a interest rate of 7%. Once my salary is credited, my RD amount will automatically deducted from my account. There is a lockin period of 2 years.
    Was this review helpful? 3
    , bangalore
    Reviewed on Sep 14, 2019
  • Kotak Recurring Deposit
    "Good investment for the future"
    KOTAK MAHINDRA BANK
    0.5 5.0/5 "Blown Away!"
    I had a Recurring deposit for one year with Kotak Mahindra, through netbanking I invested Rs.500 on monthly basis they gave around 7.5% of interest for the total amount. Now I withdrawn the benefits even there is no charges for pre matured as well. The online site is very convenient to invest the money.
    Was this review helpful? 1
    , chennai
    Reviewed on Sep 14, 2019
  • HDFC Bank Recurring Deposit
    "Can do better on the interest"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    Recently I opened HDFC recurring deposit, the interest rate is lesser around 7.25% fpr per annum, every month I activated ecs for Rs. 2000 it has the term of 18 months. There is no pre matured charges to take the liquidity. The online banking is convenient to check the RD transactions as well.
    Was this review helpful? 1
    , bangalore
    Reviewed on Sep 05, 2019
  • HDFC Bank Recurring Deposit
    "Really useful for the people for savings purpose."
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    HDFC People has provided me a RD account when i opened my salary account hence every month Rs. 1000 has been deducted from my account. I get a quick response from HDFC. Their interest rate is quite good. There is no additional charges and there is a lockin period of 18 months.
    Was this review helpful? 2
    , indore
    Reviewed on Sep 01, 2019
  • ICICI Bank Recurring Deposit
    "Best Investment"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have been investing the money through recurring deposit. Since i have a salary account from ICICI, i have chosen the RD with them. I am investing Rs. 2000 every month and the rate of interest is 7.9% which is fine for me. Once the salary is credited to my amount, by next second automatically the amount is deducted from my account.
    Was this review helpful? 1
    , bangalore
    Reviewed on Aug 31, 2019
  • HDFC Bank Recurring Deposit
    "Good Savings scheme"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I have a basic recurring deposit in HDFC. In HDFC, they themselves deducting the money of Rs. 1000 every month for a recurring deposit. The interest rates are good which is more than 7%. There is no additional charges. There is no lockin period and i can canceled it any time. The time which i have chosen for 27 months.
    Was this review helpful? 4
    , chennai
    Reviewed on Aug 26, 2019
  • HDFC Bank Recurring Deposit
    "Good saving for future"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    When I opened salary account I got the RD along with that, I am investing the money on the monthly basis, the rate of interest for RD is good. They are doing auto deduct from the account balance, I can view the RD transaction through netbanking.
    Was this review helpful? 2
    , bangalore
    Reviewed on Aug 23, 2019
  • HDFC Bank Recurring Deposit
    "Good savings scheme"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have been maintaining Recurring Deposit account with HDFC, I have opt for one year of recurring deposit. I am investing the money of Rs.2000 per month, the interest rate is good as per th RBI guideline. There is no charges for holding this. Good saving and getting benefited from this.
    Was this review helpful? 3
    , bangalore
    Reviewed on Aug 22, 2019
  • Union Bank of India Recurring Deposit
    "Safe and Secured investment"
    UNION BANK OF INDIA
    0.5 4.0/5 "Great!"
    Currently Union of Bank is offering 7% of interest per annum for the recurring deposit investment. The online option is very good to make the deposits without going to the bank. I can deposit minimum of Rs. 500 to max period, I have option increase the tenure period as well.
    Was this review helpful? 1
    , mumbai
    Reviewed on Jul 29, 2019
  • HDFC Bank Recurring Deposit
    "Good for saving"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I have been maintaining RD account with HDFC, I have opt for one year of recurring deposit. I believe we can deposit Rs.5000 per month, the interest rate is good as per th RBI guideline. There is no charges for the liquidity before the maturity period it won't cover tax.
    Was this review helpful? 3
    , kolkata
    Reviewed on Jul 29, 2019
  • IDBI Recurring Deposit
    "With LIC, you can trust them even more"
    IDBI BANK
    0.5 3.0/5 "Satisfactory"
    The interest rate was good for Recurring Deposit. I believe, IDBI is providing around 8 to 9%. I have done it for one year before 2 years back. The bank is next to my place and their staffs were friendly. They are easily accessible and any queries will be solved in time.
    Was this review helpful? 4
    , bangalore
    Reviewed on Jul 26, 2019
  • SBI Recurring Deposit
    "Good investment plan"
    STATE BANK OF INDIA
    0.5 3.0/5 "Satisfactory"
    I am investing the amount of Rs. 1400 every month and the given interest rate is very low which is between 2 to 3%. For the saving purpose i have chosen this account. Through auto debit, I'm paying the amount. There is a lockin period for 1 year and there is a no service charges for my Recurring deposit.
    Was this review helpful? 6
    , bangalore
    Reviewed on Jul 25, 2019
  • ICICI Bank Recurring Deposit
    "Good"
    ICICI BANK
    0.5 4.0/5 "Great!"
    ICICI BANK is convenient to do my transactions with one bank and also the customer service is good so have opened my Recurring deposit account. Its been 4 to 5 years and the benefits are as per the market price. I could manage my account online.
    Was this review helpful? 0
    , pune
    Reviewed on Jul 24, 2019
  • Axis Bank Recurring Deposit
    "GOOD"
    AXIS BANK
    0.5 5.0/5 "Blown Away!"
    I am using the AXIS BANK services since from last 7-8 months, the reason for getting the R.D was it was a salary account. The rate of interest was 7.25%, to open the account it is good. There is a application is good and it is good to use with the bank.
    Was this review helpful? 4
    , bangalore
    Reviewed on Jul 20, 2019
  • HDFC Bank Recurring Deposit
    "Good"
    HDFC BANK
    0.5 4.5/5 "Excellent!"
    I have invested my money with HDFC BANK. I can manage the recurring deposit account online. I have compared with the different bank but the rate of interest is more or less same. I never contacted the customer service. The locking period is one year.
    Was this review helpful? 4
    , gurgaon
    Reviewed on Jul 20, 2019
  • ICICI Bank Recurring Deposit
    "Good investment for future"
    ICICI BANK
    0.5 4.0/5 "Great!"
    I opened one year of recurring deposit with ICICI bank, on monthly basis I used to deposit Rs. 5000 even I have option to prolong the duration. The interest rate is good for the long term investment when compared to others. They are helpful in RD queries.
    Was this review helpful? 3
    , bangalore
    Reviewed on Jul 19, 2019
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