Recurring deposit accounts with post offices fetch an interest rate of 6.9% per annum.
Recurring deposit (RD) accounts offer interest rates similar to those on fixed deposit (FD) accounts.
The benefit of opening a recurring deposit is that your money does not get blocked until fixed periods of time like in FDs.
RDs require customers to make monthly deposits with banks, based on which RDs generate interest income for their customers.
Thus, RDs provide an opportunity to customers build up savings through regular monthly deposits of a fixed sum over a period of time.Given below are interest rates on recurring deposit (RD) accounts offered by State Bank of India (SBI), ICICI Bank, HDFC Bank and post officesRecurring deposit (RD) interest rates offered by SBIAll figures in % per annum on deposits of less than Rs 1 crore according to SBI website, sbi.co.in:TenorsExisting for Public w.e.f.
28.02.2018Revised For Public w.e.f.
28.03.2018Existing for Senior Citizens w.e.f.
28.02.2018Revised for Senior Citizens w.e.f.
28.03.20187 days to 45 days5.755.756.256.2546 days to 179 days6.256.256.756.75180 days to 210 days6.356.356.856.85211 days to less than 1 year6.46.46.96.91 year to less than 2 year6.46.46.96.92 years to less than 3 years6.56.677.13 years to less than 5 years6.56.777.25 years and up to 10 years6.56.7577.25(: Features, conditions of SBI Recurring Deposits)Recurring deposit (RD) interest rates offered by ICICI Bank (from icicibank.com)Maturity PeriodRate of Interest (% p.a.)w.e.f December 11, 2017GeneralSenior Citizen6 months66.59 months6.256.7512 months6.67.115 months6.757.2518 months6.757.2521 months6.757.2524 months6.757.2527 months6.5730 months6.5733 months6.5736 months6.57Above 3 years upto 5 years6.57Above 5 years upto 10 years6.57Recurring deposit (RD) interest rates offered by HDFC Bank (from hdfcbank.com)Period< 1 CroreInterest Rate**Senior Citizen Rates(per annum)(per annum)7 - 14 days3.50%4.00%15 - 29 days4.25%4.75%30 - 45 days5.50%6.00%46 - 60 days5.75%6.25%61 - 90 days5.75%6.25%91 days - 6 months5.75%6.25%6 mnths 1 day- 6 mnths 3 days6.00%6.50%6 mnths 4 days6.00%6.50%6 mnths 5 days- 9 mnths6.00%6.50%9 mnths 1 day- 9 mnths 3 days6.00%6.50%9 mnths 4 days6.00%6.50%9 months 5 days - 9 months 15 days6.00%6.50%9 months 16 days6.25%6.75%9 months 17 days < 1 Year6.25%6.75%1 Year6.85%7.35%1 year 1 day - 1 year 3 days6.50%7.00%1 year 4 days6.25%6.75%1 year 5 days - 1 Year 15 Days6.25%6.75%1 Year 16 days6.25%6.75%1 year 17 days - 2 Years7.00%7.50%2 years 1day - 2 Years15 days7.00%7.50%2 Years16 days7.00%7.50%2 years17 days - 3 Years7.00%7.50%3 years 1day - 5 years7.00%7.50%5 Years 1 Day - 8 Years6.00%6.50%8 Years 1 Day - 10 Years6.00%6.50%Recurring deposit (RD) interest rates offered by post officesRecurring deposit accounts with post offices fetch an interest rate of 6.9 per cent per annum.
This interest is compounded quarterly, said India Post on its website, indiapost.gov.in.
Thus, a Rs 10 deposit in an RD account fetches Rs 717.43 on maturity.
RDs can be continued for another five years on a year-to-year basis.