Revision in interest rates have come after the RBI hiked the repo rate to 6.5%.An RD or recurring deposit is a kind of term deposit wherein a fixed amount of money is deposited at fixed intervals, which generates interest income.
On maturity, the depositor is paid a lump-sum amount which includes his/her periodic investments and the interest income earned on them.
Earlier this week, ICICI Bank revised its interest rates on both recurring deposits and fixed deposits.
Recently, big banks such as State Bank of India, HDFC Bank have also revised their interest rates.
The revision in interest rates have come after the Reserve Bank of India hiked the repo rate to 6.5 per cent.Here is a comparison of recurring deposit (RD) rates offered by ICICI Bank, State Bank of India (SBI), HDFC Bank and Punjab National Bank (PNB):Recurring deposit (RD) rates offered by ICICI Bank:Maturity PeriodRate of Interest (% p.a.) w.e.f August 14, 2018GeneralSenior Citizen6 months66.59 months6.5712 months6.757.2515 months77.518 months77.521 months77.524 months77.527 months7.257.7530 months7.257.7533 months7.257.7536 months7.257.75Above 3 years upto 5 years7.257.75Above 5 years upto 10 years77.5Recurring deposit (RD) rates offered by State Bank of India:Revised from July 30, 2018:TermInterest rate for general public (% per annum)Interest rate for senior citizens (% per annum)7 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less than 2 year6.77.22 years to less than 3 years6.757.253 years to less than 5 years6.87.35 years and up to 10 years6.857.35Recurring deposit (RD) rates offered by HDFC Bank:Revised from August 6, 2018:PeriodInterest Rate (per annum)Senior Citizen Rates (per annum)Effective From6 Months6.25%6.75%June 06,20189 Months6.75%7.25%August 06,201812 Months7.25%7.75%August 06,201815 Months7.25%7.75%August 06,201824 Months7.25%7.75%August 06,201827 Months7.10%7.60%August 06,201836 Months7.10%7.60%August 06,201839 Months7.10%7.60%August 06,201848 Months7.10%7.60%August 06,201860 Months7.10%7.60%August 06,201890 Months6.00%6.50%Jan 06,2017120 Months6.00%6.50%Jan 06,2017Recurring deposit (RD) rates offered by Punjab National Bank (PNB):Sl.
NoPeriodROI (% p.a.)For Senior Citizen ROI (% p.a.)17 to 14 days5.76.2215 to 29days5.76.2330 to 45 days5.76.2446 to 90 days6.356.85591 to 179 days6.356.856180 days to 270 Days6.356.857271 days to less than 1 year6.356.8581 year6.757.259above 1 year upto 3 years6.757.2510above 3 year upto 5 years6.256.7511above 5 years upto 10 years6.256.75However, small finance banks generally offer higher interest rates as compared to many leading banks.