Institutions such as small finance banks and post offices also offer the facility of recurring deposit.Recurring Deposit or RD is a kind of term deposit under which one needs to deposit a fixed amount at fixed interval, which generates interest income.
On maturity, the depositor is paid a lump-sum amount which includes the periodic investments and the interest income earned on them.
Recurring deposit interest rates, once determined, do not change during the tenure.
In fact, the Reserve Bank of India ensures that strict guidelines are followed by banks.
Institutions such as small finance banks and post offices also offer the facility of recurring deposit.Here is a comparison of recurring deposit (RD) rates offered by State Bank of India (SBI), Kotak Mahindra Bank, HDFC Bank and ICICI Bank:State Bank of IndiaRecurring deposit rates offered by SBI:TenorsRevised For Public w.e.f.
28.11.2018Revised for Senior Citizens w.e.f.
28.11.20187 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less than 2 year6.87.32 years to less than 3 years6.87.33 years to less than 5 years6.87.35 years and up to 10 years6.857.35Source: sbi.co.inKotak Mahindra BankRecurring deposit rates offered by Kotak Bank:Recurring Deposit rates effective from 10th December 2018TenureInterest Rate p.a.
( %)Senior Citizen Rates p.a.
( %)6 Months7.00%7.50%9 Months7.00%7.50%12 Months7.30%7.80%15 Months7.25%7.75%18 Months7.25%7.75%21 Months7.25%7.75%24 Months7.25%7.75%27 Months7.25%7.75%30 Months7.25%7.75%33 Months7.25%7.75%3 years - less than 4 years7.10%7.60%4 years - less than 5 years7.00%7.50%5 years - 10 years6.50%7.00%HDFC BankRecurring deposit rates offered by HDFC Bank:PeriodInterest Rate (per annum)Senior Citizen Rates (per annum)Effective From6 Months6.25%6.75%Jun 06,20189 Months6.75%7.25%Aug 06,201812 Months7.30%7.80%Nov 06,201815 Months7.30%7.80%Nov 06,201824 Months7.30%7.80%Nov 06,201827 Months7.40%7.90%Nov 06,201836 Months7.40%7.90%Nov 06,201839 Months7.25%7.75%Nov 06,201848 Months7.25%7.75%Nov 06,201860 Months7.25%7.75%Nov 06,201890 Months6.50%7.00%Nov 06,2018120 Months6.50%7.00%Nov 06,2018ICICI BankRecurring deposit rates offered by ICICI Bank:Rate of Interest (% p.a.) w.e.f November 15, 2018Maturity PeriodGeneralSenior Citizen6 months6.256.759 months6.5712 months6.97.415 months7.17.618 months7.17.621 months7.17.624 months7.17.627 months7.5830 months7.5833 months7.5836 months7.58Above 3 years upto 5 years7.257.75Above 5 years upto 10 years77.5