• Recurring Deposit for Senior Citizens

    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 Deposits, 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

    News About Recurring Deposit for Senior Citizens

    • Senior Citizens Can Avail Interest of 8% for 10 Year Tenure

      Interest rates can decline any time and to protect the senior citizens from such a situation, Narendra Modi stated that they will be able to enjoy an interest rate of 8% fixed on their deposits of more than Rs.7.5 lakh with a tenure of 10 years.

      Monthly interest can be availed by the senior citizens under this particular scheme. As per Arun Jaitley, this is a very good news for all the senior citizens of India. At present, the banks offer 0.50% extra interest to the senior citizen customers. The largest lender in India, State Bank of India, gives 7% interest to all the customers who are senior citizens. This rate is available for tenures that range between 5 years and 10 years. Post demonetisation, the banks are reducing their rates of interest with fixed deposits which will affect everyone including the senior citizens. At post offices under the SCSS (Senior Citizen Savings Scheme), interest rate of 8.5% can be availed for deposits of Rs.15 lakh with a maturity tenure of 5 years.

      31 December, 2016

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    RD Reviews

  • Page 1 of 1
    • YES Bank Recurring Deposit
      "Extremely good.."
      YES BANK
      0.5 5.0/5 "Blown Away!"
      Right now the rate of interest at YES bank for recurring deposit is 7.75% and for senior citizens it increases at 0.5% from the normal rate. Their net banking is too good. Incase we drop the deposit in middle 0.5% will be the penalty. As the rate is simple kind.
      Was this review helpful? 4
      , panipat
      Reviewed on Mar 10, 2016
    • SBI Recurring Deposit
      "Limited employees..."
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      Branch is too crowd always and queue is long as SBI is typical government organization. Managers are very limited so it would take almost one hour to get things done where in private banks we can finish it off in 15 minutes. Back end of SBI is weak so they have to focus. Interest rate on recurring deposit is 8-8.5% and for senior citizens it is 9 to 9.5%. Infact this is cumulative rate.
      Was this review helpful? 0
      , ranchi
      Reviewed on Jul 13, 2015
    • YES Bank Recurring Deposit
      "Excellent service.."
      YES BANK
      0.5 5.0/5 "Blown Away!"
      Depending upon the tenure period the interest rate varies for recurring deposit. Start from three months the tenure is available and interest rate starts from 7%. For senior citizens the rate is 0.5% high. No pre closing charge and YES bank will not cut down the interest charge.
      Was this review helpful? 4
      , bangalore
      Reviewed on May 25, 2015
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