Recurring deposit interest rates, once determined, do not change during the tenure.Recurring Deposit (RD) is a kind of term deposit under which one needs to deposit a fixed amount at fixed interval, which generates interest income.
Unlike a fixed deposit (FD) account, in which a lump-sum amount is locked in for a defined period against a fixed return, a recurring deposit (RD) account allows the investor to park a fixed amount of funds at regular intervals; for instance, every month.
On maturity, the depositor is paid a lump-sum amount which includes the periodic investments and the interest income earned on them.Here is a comparison of recurring deposit (RD) rates offered by State Bank of India (SBI), IndusInd 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 years6.857.35(Source: sbi.co.in)IndusIndBankRecurring deposit rates offered by IndusIndBank:TenureInterest Rate p.a.(%)Senior Citizen Rates p.a.(%)12 Months88.515 Months88.518 Months88.521 Months88.524 Months7.5827 Months7.5830 Months7.5833 Months7.583 years - less than 5 years7.585 years - 10 years7.257.75HDFC BankRecurring deposit rates offered by HDFC Bank:PeriodInterest Rate (per annum)Senior Citizen Rates (per annum)Effective From6 Months6.25%6.75%June 06, 20189 Months6.75%7.25%August 06, 201812 Months7.30%7.80%November 06, 201815 Months7.30%7.80%November 06, 201824 Months7.30%7.80%November 06, 201827 Months7.40%7.90%November 06, 201836 Months7.40%7.90%November 06, 201839 Months7.25%7.75%November 06, 201848 Months7.25%7.75%November 06, 201860 Months7.25%7.75%November 06, 201890 Months6.50%7.00%November 06, 2018120 Months6.50%7.00%November 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 up to 5 years7.257.75Above 5 years up to 10 years77.5Recurring deposit interest rates, once determined, do not change during the tenure.
Institutions such as small finance banks and post offices also offer the facility of recurring deposit.