In recurring deposit or RD, you get a pre-assured sum, without any investment risk.A recurring deposit or RD is an investment plan meant for long-term wealth creation in which investment is made in small instalmentsat fixed intervals systematically.
Today, an investor can choose from a variety of terms - or maturity period - up to 10 years to set up a recurring deposit account with a bank.
In a recurring deposit, a depositor usually makes small value remittances, say Rs.500 or Rs 1,000, at monthly intervals.
Unlike any other market-linked instrument, a recurring deposit allows the depositor to earn a pre-assured sum (with applicable tax deduction) without any investment risk after completion of the maturity period.Here's a comparison of interest rates paid by State Bank of India (SBI), India Post and small finance banks in recurring deposit accounts:SBI Recurring Deposit Interest Rates 2018The following interest rates are applicable on deposits below Rs 1 crore, according to the bank's website - sbi.co.in:SBI recurring deposit interest rates for general public(All figures in % per annum)TenorsExisting for Public w.e.f.
28.05.2018Revised For Public w.e.f.
30.07.20187 days to 45 days5.755.7546 days to 179 days6.256.25180 days to 210 days6.356.35211 days to less than 1 year6.46.41 year to less than 2 year6.656.72 years to less than 3 years6.656.753 years to less than 5 years6.76.85 years and up to 10 years6.756.85( SBI revises fixed deposit interest rates)SBI recurring deposit interest rates for senior citizens(All figures in % per annum)TenorsExisting for Senior Citizens w.e.f.
28.05.2018Revised for Senior Citizens w.e.f.
30.07.20187 days to 45 days6.256.2546 days to 179 days6.756.75180 days to 210 days6.856.85211 days to less than 1 year6.96.91 year to less than 2 year7.157.22 years to less than 3 years7.157.253 years to less than 5 years7.27.35 years and up to 10 years7.257.35HDFC Bank Recurring Deposit Interest Rates 2018HDFC Bank offers the following interest rates on recurring deposits to resident and NRE customers, according to the bank's website - hdfcbank.com:PeriodInterest Rate(per annum)**Senior Citizen Rates(per annum)Effective From6 Months6.25%6.75%June 06,20189 Months6.40%6.90%June 06,201812 Months6.85%7.35%Apr 24,201815 Months7.00%7.50%Apr 24,201824 Months7.00%7.50%Apr 24,201827 Months7.00%7.50%Apr 24,201836 Months7.00%7.50%Apr 24,201839 Months7.00%7.50%Apr 24,201848 Months7.00%7.50%Apr 24,201860 Months7.00%7.50%Apr 24,201890 Months6.00%6.50%Jan 06,2017120 Months6.00%6.50%Jan 06,2017ESAF Small Finance Bank Recurring Deposit Interest Rates 2018ESAF Small Finance Bank provides three types of recurring deposits: regular, fixed and micro.
In a Flexi Recurring Deposit, the customer can deposit over and above the contracted monthly instalment up to 10 times the same amount per month.
This will help in earning additional income on the surplus deployable funds, according to a bank spokesperson.
In a Micro RD, which is a group-based RD product, the deposit can happen at very small values, say Rs 50, at weekly or monthly intervals.
This helps in inculcating a savings habit among the lower income group with very low surplus deployable income, the spokesperson said.Retail Term Deposit (Less than INR 1 Cr)Rate of Interest Applicable from1st April2018DomesticTenureNormalSenior Citizen7 - 14 days5.75%6.25%15 - 59 days5.75%6.25%60 - 90 days6.50%7.00%91 - 179 days6.75%7.25%180 - 363 days7.50%8.00%364 days5.60%6.10%365 - 727 days8.75%9.25%728 days6.80%7.30%729 - 1091 days8.00%8.50%1092 days5.66%6.16%1093 - 1819 days7.00%7.50%1820 days5.65%6.15%1821 - 3652 days7.00%7.50%Utkarsh Small Finance Bank Recurring Deposit Interest Rates 2018Utkarsh Small Finance Bank accepts investment amounts as small as Rs 100, according to the bank's - utkarsh.bank.TenureRate of Interest (% p.a.)-W.E.F.
from 14 March 2018GENERALSENIOR CITIZEN7 Days to 15 Days3.50%4.00%16 Days to 28 Days3.50%4.00%29 Days to 45 Days4.00%4.50%46 Days to 90 Days4.50%5.00%91 Days to 120 Days5.00%5.50%121 Days to 179 Days5.50%6.00%180 Days to 210 Days6.00%6.50%211 Days to 270 Days7.00%7.50%271 Days to Less than 1 Year7.50%8.00%1 Year to 455 Days8.25%8.75%456 Days to Less than 2 Years8.50%9.00%2 Years to Less than 3 Years7.85%8.35%3 Years to Less than 5 Years7.00%7.50%5 Years8.00%8.50%More than 5 Years to 10 Years7.00%7.50%Post Office Recurring Deposit Interest Rates 2018India Post, the postal network of the country, allows customers to open a recurring deposit account.
The post office RD account, known as the five-year post office recurring deposit account, offers an interest rate of 6.9 per cent, according to India Post's website - indiapost.gov.in.The recurring deposit can be set up with a minimum amount of Rs.
10 per month.
In a recurring deposit, the investor deposits a fixed amount of money at regular intervals.
Contribution in the multiples of Rs.
5 can be chosen to invest in the five-year RD account.
The interest rate of 6.9 per cent is compounded on a quarterly basis, which means an RD of Rs.
10 - in which the account holder pays Rs.
10 every month - provides a return of Rs.
717.43 in the maturity period of five years, according to India Post.