INSUBCONTINENT EXCLUSIVE:
Recurring deposit interest rates, once determined, do not change during the tenure.Recurring deposits or RDs allow you to save money
regularly and build your savings upon your deposits
Recurring deposits allow them to accumulate funds without risks and worries of market-linked fluctuations
Recurring deposit interest rates, once determined, do not change during the tenure
In fact, the Reserve Bank of India ensures that strict guidelines are followed by banks
On maturity, the depositor is paid a lump sum amount which includes his periodic investments and the interest income earned on them.Leading
banks like State Bank of India (SBI), HDFC Bank and ICICI Bank offer the facility of opening a recurring deposit account
Even post offices offer the facility of recurring deposits
But the best interest rates on recurring deposits are offered by small finance banks, niche lenders which lend to the under-banked of the
society but can also be used by mainstream depositors
Their interest rates on savings, fixed and recurring deposits are usually higher than their larger peers as well as post offices.Given below
is a comparison of recurring deposit (RD) interest rates of AU Small Finance Bank, Suryoday Bank and post offices:Recurring deposit (RD)
interest rates of AU Small Finance BankThe amount on the instalment of your recurring deposit account, once fixed, cannot be altered at any
later date, said AU Small Finance Bank
If more than one instalment is overdue at the time of instalment, the paid instalment, if sufficient will cover only that one instalment, it
said on its website aubank.in
This instalment will be appropriated towards the first or the earliest instalment overdue.Partial payment of RD instalments is not permitted
For premature withdrawals, AU Small Finance Bank levies a penalty of 1 per cent on the applicable rate.TENURE BUCKETSInterest Rate p.a
Months7.75%8.25%18 Months7.75%8.25%21 Months7.15%7.65%24 Months7.15%7.65%27 Months7.25%7.75%30 Months7.25%7.75%33 Months7.25%7.75%36
Months7.25%7.75%37 Months to 45 Months7.30%7.80%46 Months to 60 Months8.00%8.50%61 Months to 120 months7.25%7.75%Recurring deposit (RD)
interest rates of Suryoday BankThe maximum amount of monthly instalment of a recurring deposit account is capped at Rs 14,99,900, said
Recurring deposit accounts can be maintained for a minimum tenure of six months and in multiples of three months thereafter subject to a
maximum of 10 years, it said on its website suryodaybank.com
The minimum instalment amount for an RD is Rs 100 (and multiples of Rs 100 thereof).Interest RatesDomestic Deposits (Effective: From
months8.50%8.75%18 months8.50%8.75%21 months8.50%8.75%24 months8.50%8.75%27 months8.75%9.00%30 months8.75%9.00%33 months8.75%9.00%36
months8.75%9.00%Above 3 years to 5 years7.75%8.00%Above 5 years to 10 years7.25%7.50%Recurring deposit (RD) interest rates of post
officesYou can open a recurring deposit account in any post office of the country with a minimum amount of Rs 10 per month or any amount in
multiples of Rs 5, said India Post
There is no maximum limit on the investment, according to indiapost.gov.in
The recurring deposit account can be opened by cash / cheque and can be transferred from one post office to another.Post offices offer an
interest rate of 6.9 per cent per annum (quarterly compounded) on recurring deposits
This has been the interest rate on recurring deposits since 1.01.2018
On maturity, a deposit of Rs 10 in recurring deposit account fetches Rs 717.43
The RD can be continued for another five years on year-to-year basis.
