Recurring deposit interest rates, once determined, do not change during the tenure.Recurring deposit (RD) is a kind of term deposit under which one needs to deposit a fixed amount at fixed interval, which generates interest income.
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 periodic investments and the interest income earned on it.
Institutions such as small finance banks and post offices also offer the facility of recurring deposit.Here is a comparison of recurring deposit (RD) rates offered by State Bank of India (SBI), HDFC Bank, ICICI Bank and Yes Bank:Recurring 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: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 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 Yes Bank:Resident Recurring Deposit rates w.e.f 5th June 2018*PeriodInterest Rate (per annum)Senior Citizen Rates (per annum)6 Months6.70%7.20%9 Months6.70%7.20%12 Months7.10%7.60%15 Months7.10%7.60%18 Months7.10%7.60%21 Months7.10%7.60%24 Months7.10%7.60%Above 2 years up to 10 Years7.10%7.60%Source: yesbank.inHowever, the best interest rates on recurring deposits are offered by small finance banks.
Their interest rates on savings, fixed and recurring deposits are usually higher than their larger peers as well as post offices.