Recurring Deposit (RD) Interest Rates of Top Banks August 2020
In this article you will find the Recurring Deposit Interest Rates of major banks in India. These interest rates are as on last updated by the respective websites.
Recurring Deposit Interest Rates of Major Banks August 2020
What is Recurring Deposit?
- A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by Indian Banks. It is an investment tool which allows people to make regular deposits and earn decent returns on the investment.
- Due to the regular deposit factor and an interest component, it often provides flexibility and ease of investments to users/individuals.
- However, it is essential to know that RDs are different from Fixed Deposits/FDs. RDs are flexible in most aspects. An RD account holder can choose to invest a fixed amount each month while earning decent interest on the amount. RDs are an ideal saving-cum-investment instrument.
- Most major banks in India offer Recurring Deposit Accounts, with a term that often ranges between 6 months to 10 years, also providing individuals with the opportunity to choose a term according to their needs. However, the interest rate, once determined, does not change during the tenure.
- On maturity, the individual will be paid a lump sum amount which includes the regular investments as well as the interest earned.
Below are the RD Interest Rates offered by major banks for various durations :
Recurring Deposit (RD) Interest Rates for Tenure up to 2 years
Recurring Deposit (RD) Interest Rates for Tenure from 2 years up to 10 years
- Citibank provides RD’s with minimum tenure of 1 year and maximum tenure of 2 years.
- All the banks mentioned above offer 0.50% extra interest rates for senior citizens.
- Bandhan Bank offers 0.75% extra interest rates for senior citizens. Axis Bank also provides variable higher interest rates for senior citizens.
- IndusInd Bank (7%) provide the highest interest rates on RD’s for 1 year tenure (12 months).
- Yes Bank, IndusInd Bank and IDFC First Bank provide the highest interest of 7% for the tenure from 12 months up to 36 months.
- Bandhan Bank, HDFC Bank, Kotak Mahindra Bank and DBS Bank also provide higher and competitive interest rates on RDs.