FD rates: State Bank of India and India Post pay interest rates to the tune of 5.75-7.8% on term depositsMost lenders today provide two types of term-deposit accounts: fixed deposit (FD) and recurring deposit (RD).A term deposit offers a fixed return against deposit for a particular lock-in period.
A recurring deposit, also a type of term deposit, enables the investor to contribute to the account on regular intervals, unlike a fixed deposit which requires a lump-sum payment.
Government-owned institutions such as State Bank of India, the country's largest bank, and India Post - the postal network of the country which also provides banking and remittance services - offer both recurring deposits and fixed deposits.State Bank of India (SBI) FD, RD interest ratesSBI pays interest at the following rates on retail domestic term deposits below Rs 2 crore:TermInterest rate with effect from February 22, 2019For general publicFor senior citizens7 days to 45 days5.75%6.25%46 days to 179 days6.25%6.75%180 days to 210 days6.35%6.85%211 days to less than 1 year6.4%6.9%1 year to less than 2 year6.8%7.3%2 years to less than 3 years6.8%7.3%3 years to less than 5 years6.8%7.3%5 years and up to 10 years6.85%7.35%(Source: sbi.co.in)India Post (post office) FD, RD interest ratesThe Department of Posts pays the following interest rates on the funds in its time deposit (term deposit) accounts:TermInterest rate with effect from January 1, 20191 year7.00%2 years7.00%3 years7.00%5 years7.80%(Source: indiapost.gov.in)On recurring deposits, the post office pays interest at the rate of7.3 per cent for the current quarter.
(Small savings schemes interest rates kept unchanged.
Find out the interest rates for June quarter)Financial advisors say recurring deposits are more suitable for salaried investors as it enables them to fix a portion of their income towards savings.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.