Several Banks offer Recurring Deposit for Senior Citizens for a tenure ranging from a minimum period of 6 months up to a maximum period of 10 Years. The tenure can be chosen by the depositor, in multiples of 3 months. Senior Citizens can avail special benefits on recurring deposit schemes, such as an additional interest rate of 0.25% to 0.75% over and above the regular interest rate offered by most banks. Once the amount of installment and tenure is fixed, it cannot be changed once the account is opened. Interest on the recurring deposit scheme is compounded on a quarterly basis.
The interest rate applicable on the recurring deposit is similar to that applicable on the Fixed Deposit, for a similar tenure. Financial institutions like Bank of India offers 0.5% additional interest rate on recurring deposit, compared to the fixed deposit available for the same tenure. Usually, the minimum recurring deposit amount can be a minimum of Rs 100 per month. However, this varies from bank to bank.
Defaulting on deposits can lead to penalty charges on your recurring deposit account and if there is defaulted payment of multiple installments, the bank at its discretion, can close the recurring deposit account and reimburse the investment to the depositor.
Several banks also offers loans against recurring deposit or offer an overdraft facility against the amount that is available in an individual’s Recurring Deposit account. In this case, the rate of interest applicable will be 0.5% - 1% more than the interest applicable on recurring deposit. Another factor is that, senior citizen recurring deposit accounts are also subject to a penalty fee if they make a premature withdrawal from the account.
Interest Rate on Senior Citizen Recurring Deposits
| Banks | ROI for Tenure 1 Year | ROI for Tenure 2 Years | ROI for Tenure 3 Years | ROI for Tenure 4 Years | ROI for Tenure 5 Years | ROI for Tenure 5+ Years |
| Andhra Bank | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% |
| Allahabad Bank | 8.00% | 8.00% | 7.75% | 7.75% | 7.75% | 7.75% |
| Axis Bank | 8.40% | 8.25% | 8.25% | 8.25% | 8.25% | 8.00% |
| Bank of Baroda | 7.80% | 7.80% | 7.80% | 7.80% | 7.80% | 7.80% |
| Bandhan Bank | 9.00% | 9.00% | 8.75% | 8.75% | 8.75% | 8.50% |
| Bank of India | 7.80% | 7.80% | 7.80% | 7.80% | 7.80% | 7.75% |
| Canara Bank | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | 8.00% |
| Bank of Maharashtra | 8.10% | 8.00% | 8.00% | 8.00% | 8.00% | 7.75% |
| Catholic Syrian Bank | 8.10% | 8.10% | 8.10% | 8.10% | 8.10% | 8.10% |
| City Union Bank | 8.25% | 8.00% | 8.00% | 8.00% | 8.00% | 7.75% |
| Central Bank of India | 8.25% | 8.25% | 8.00% | 8.00% | 8.00% | 8.00% |
| Corporation Bank | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
| Dena Bank | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 7.85% |
| DCB Bank | 8.40% | 8.65% | 8.70% | 8.70% | 8.70% | 8.50% |
| Dhanalakshmi Bank | 7.90% | 7.90% | 7.90% | 7.75% | 7.75% | 8.00% |
| HDFC Bank | 8.40% | 8.15% | 8.25% | 8.15% | 8.15% | 8.25% |
| Federal Bank | 8.10% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
| ICICI Bank | 8.25% | 8.40% | 8.25% | 8.25% | 8.25% | 8.00% |
| IDFC Bank | 8.50% | 8.25% | 8.00% | 8.00% | 8.00% | 8.00% |
| IDBI Bank | 8.25% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
| Indian Bank | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% |
| Indus Ind Bank | 8.50% | 8.25% | 8.25% | 8.25% | 8.25% | 8.00% |
| Indian Overseas Bank | 8.00% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% |
| J&K Bank | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.25% |
| Karur Vysya Bank | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% |
| Karnataka Bank | 8.25% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
Read More Article on Recurring Deposit
- How to Open a Recurring Deposit Online
- Flexi Recurring Deposit Schemes
- Differences Between Recurring Deposit and Fixed Deposit
- Tax on Recurring Deposit Interest Rates
- Comparison Between RD and Chit Fund
- Which Banks offer the Highest Recurring Deposit Interest Rates in India
- Recurring Deposit Interest Rates of All Banks
- How to Open RD Account in SBI Online
- Monthly Recurring Deposit
- SBI Flexi Deposit Scheme
- PNB Swechha Jama Yojna/Flexi RD Scheme
- Bank of India Star Flexi-Recurring Deposit Scheme
- Baroda Samriddhi Half Yearly Recurring Deposit
- Canara Dhanvarsha Flexi Recurring Deposit Scheme
- Union Bank Cumulative Deposit Scheme
- Union Monthly Plus Recurring Deposit Scheme
- Indian Bank Swarna Nidhi Recurring Deposit
- Comparison Between LIC and Recurring Deposit
- Indian Bank Variable Recurring Deposit
- Baroda Samriddhi Quarterly Recurring Deposit
- PNB Special Recurring Deposit Scheme
- PNB Lakhpati Deposit Scheme
- Bank of Baroda Yatha Shakti Jama Yojana Scheme
- NRI Recurring Deposit Banks
- Recurring Deposit By Co-Operative Banks
- Best Recurring Deposit Schemes for Children
- Loan Against Recurring Deposit
- ICICI iWish Recurring Deposit
- AB Recurring Plus Scheme
- Baroda Regular Income Cum Recurring Deposit Scheme
- Cent Swashakti Flexi Recurring Deposit Scheme
- Corporation Bank - Millionaire RD Account
