Recurring Deposit (RD) is a kind of term deposit under which investors need to deposit a fixed amount at a fixed interval, which generates a guaranteed interest income.
Unlike a fixed deposit (FD) account, in which a lump-sum amount is locked in for a defined period against a fixed return, an RD account allows the investor to invest fixed amount of funds at regular intervals; for instance, every month.
On maturity, the depositor is paid a lump-sum amount which includes the periodic investments and the interest income earned on them.
RD interest rates are subject to change from time to time.State Bank of IndiaThe following RD interest rates are offered by SBI with effect from May 9, 2019, according to the bank's website - sbi.co.in:TenorsGeneral public (% p.a.)Senior citizens (% p.a.)1 year to less than 2 year6.87.32 years to less than 3 years6.87.33 years to less than 5 years6.87.35 years and up to 10 years6.857.35Punjab National BankThe following RD interest rates are offered by PNB with effect from May 1, 2019, according to the bank's website - pnbindia.in:IndusInd BankThe following RD interest rates are offered by IndusInd Bank with effect from April 25, 2019 according to the bank's website, indusind.com:TenorsGeneral public (% p.a.)Senior citizens (% p.a.)12 Months7.68.115 Months7.68.118 Months7.758.2521 Months7.758.2524 Months7.758.2527 Months7.758.2530 Months7.758.2533 Months7.758.253 years - less than 5 years7.357.855 years - 10 years7.257.75HDFC BankThe following RD interest rates are offered by HDFC Bank, according to the bank's website - hdfcbank.com:ICICI BankThe following RD interest rates are offered by ICICI Bank with effect from March 7, 2019 according to the bank's website - icicibank.com:Institutions such as small finance banks and post offices also offer the facility of recurring deposit account.