INSUBCONTINENT EXCLUSIVE:
RDs or recurring deposits require customers to pay the instalments in regular payments
Recurring deposit (RD) accounts are popular among customers who want to build on their savings
Interest rates on recurring deposits are as compelling as those on fixed deposits (FDs)
The only difference between the two forms of investments is that fixed deposits are a one-time investment, while recurring deposits require
customers to pay the instalments in regular payments
Major banks such as State Bank of India (SBI) offer the option of opening recurring deposit accounts
However, the interest rates on recurring deposits of large banks like SBI are not as high as those offered by small finance banks such as AU
Small Finance Bank, Equitas Small Finance Bank and Suryoday Bank.What are small finance banksSmall finance banks aim to provide banking and
credit services in rural areas and interiors
They cater to small farmers, businessmen and other marginalised sections of the society, where mainstream banks have not penetrated as yet
Thus they provide financial inclusion to underbanked peopleFor small finance banks, making customers invest on a continuous basis is a key
"As digital penetration and use of handheld devices make customer acquisition easier for all even without having physical presence in the
interiors, private sector banks are engaging microfinance companies as their business correspondences to mobilise low-cost deposit from
rural catchments," said Rakesh Singh, retail head, SVC Bank.Apart from these, small finance banks need to expand beyond their neighbourhood
and break their regional barriers, he added.However, interest rates on their savings accounts and fixed deposit accounts are lucrative and
many a times even better than mainstream banks.BanksUp to 1 yearUp to 3 yearsUp to 5 yearsAU Small Finance Bank7%7.25%8%Equitas Small
Finance Bank7.50%7.75%7%Suryoday Bank8.50%8.75%7.75%Given below are interest rates on recurring deposits offered by AU Small Finance Bank,
Equitas Small Finance Bank and Suryoday Bank:Post offices also offer the option of opening recurring deposit accounts.
