Recurring Deposit Interest Rates Comparison – 07 May 2018
| Bank Name | RD Interest Rates | Senior Citizen RD Rates |
|---|---|---|
| Allahabad Bank RD Rates | 6.25% to 6.75% | 6.25% to 6.75% |
| Andhra Bank RD Rates | 6.25% to 6.85% | 6.75% to 7.35% |
| Axis Bank RD Rates | 6.25% to 6.75% | 6.5% to 7.25% |
| Bandhan Bank RD Rates | 6.5% to 7.5% | 7% to 8% |
| Bank of Baroda RD Rates | 6.25% to 6.9% | 6.75% to 7.4% |
| Bank of India RD Rates | 6.50% to 6.70% | 6.50% to 6.70% |
| Bank of Maharashtra RD Rates | 6% to 6.25% | 6.5% to 6.75% |
| Bharatiya Mahila Bank RD Rates | 6.5% to 7% | 7% to 7.5% |
| Canara Bank RD Rates | 6% to 6.5% | 6.5% to 7% |
| Central Bank of India RD Rates | 4.75% to 6.6% | 5.25% to 7.1% |
| CitiBank RD Rates | 5.25% | 5.25% |
| City Union Bank RD Rates | 6.7% to 7.1% | 6.95% to 7.5% |
| Corporation Bank RD Rates | 6.65% to 6.75% | 7.15% to 7.25% |
| DBS Bank RD Rates | 5.75% to 6.7% | 5.75% to 6.7% |
| Dena Bank RD Rates | 6.5% to 7% | 6.5% to 7% |
| Deutsche Bank RD Rates | 6% to 7.5% | 6.5% to 7.75% |
| Dhanalakshmi Bank RD Rates | 6.5% to 6.6% | 7% to 7.1% |
| DHFL Bank RD Rates | 7.75% | 7.75% |
| Federal Bank RD Rates | 6.5% to 7% | 7% to 7.5% |
| HDFC Bank RD Rates | 5.75% to 6.75% | 6.25% to 7.25% |
| ICICI Bank RD Rates | 6.0% to 6.75% | 6.5% to 7.25% |
| IDBI Bank RD Rates | 6% to 6.65% | 6.5% to 7.15% |
| Indian Bank RD Rates | 4.5% to 4.75% | 5% to 6.25% |
| Indian Overseas Bank RD Rates | 5.75% to 7.25% | 6.25% to 7.75% |
| IndusInd Bank RD Rates | 6.5% to 6.85% | 7% to 7.35% |
| Jammu and Kashmir Bank RD Rates | 6.5% to 6.75% | 7% to 7.25% |
| Karnataka Bank RD Rates | 6.5% to 6.9% | 7% to 7.40% |
| Karur Vysya Bank RD Rates | 6.75 to 7% | 6.75 to 7.5% |
| Kotak Mahindra Bank RD Rates | 6% to 6.6% | 6.5% to 7.1% |
| Lakshmi Vilas Bank RD Rates | 7% | 7% |
| Nainital Bank RD Rates | 7.50% to 7.90% | 8.00% to 8.40% |
| Oriental Bank of Commerce RD Rates | 6.5% to 6.85% | – |
| Post Office RD Rates | 7.10% | 7.10% |
| Punjab and Sind Bank RD Rates | 6.40% to 6.80% | 7.10% to 7.30% |
| Punjab National Bank RD Rates | 6.25% to 6.75% | 6.75% to 7.25% |
| Saraswat Bank RD Rates | 6.80% | 7.05% |
| South Indian Bank RD Rates | 6% to 6.75% | 6.75% to 725% |
| State Bank of India RD Rates | 6.25% to 6.75% | 6.75% to 7.25% |
| Syndicate Bank RD Rates | 6.5 to 6.6% | 7 to 7.1% |
| Tamilnad Mercantile Bank RD Rates | 5% to 7% | 7% to 7.5% |
| UCO Bank RD Rates | 6.25% to 6.5% | 6.25% to 6.5% |
| Union Bank of India RD Rates | 6.8% to 7% | 6.8% to 7% |
| United Bank of India RD Rates | 5.75% to 6.25% | 5.75% to 6.25% |
| Vijaya Bank RD Rates | 6.25% to 6.5% | 6.75% to 7% |
| Yes Bank RD Rates | 7% to 7.10% | 7.50% to 7.6% |
Types of Recurring Deposit Interest Rates
Junior RD Schemes – Bank’s also offer recurring deposit schemes for kids. Parents or guardians can open these deposits for their children to start saving for their future, education and other needs. Students can also avail of these deposit schemes. Learning to handle finances and the importance of saving at a young age will help inculcate a smart sense of money. The interest earned on these deposits will either be equivalent to the regular RD schemes or be higher to encourage saving amongst the youngsters.
Senior Citizens RD Schemes – Banks offer higher rates of interest for senior citizens. Usually, 0.50% per annum is given over and above the prevailing interest rate. The interest rates range between 7.5% to 9.25% per annum. There are also schemes available that are designed to help senior citizens during their retirement and old age.
NRE/NRO RD schemes – NRE and NRO recurring deposit accounts may be offered a lower interest rate. Furthermore, senior citizens who hold NRE/NRO accounts will not be offered the additional interest rate. These accounts attract around 7.50% interest per annum.
Special RD Schemes – Banks offer different schemes designed to suit the needs and capabilities of a variety of people. These schemes generally carry a higher rate of interest as your goal is more specific. ICICI Bank offers the iWish deposit which allows you to contribute various amounts of money to your RD account. Furthermore, other people can also contribute to help you reach your goals. There are RD schemes with free life insurance available. With certain schemes, you are allowed to withdraw the money in part without breaking the full deposit. Other schemes reward you with a bigger lump sum amount which makes it a worthwhile investment.
Factors That May Affect Recurring Deposit Interest Rates
Type of account – The account you hold will make a difference in the eligible interest rates. Regular savings accounts usually get higher interest than the NRE/NRO accounts. Some banks offer the same interest rates to both account holders.
Tenure – The tenure of your deposit is one of the most important factors in determining the RD interest rate. Medium term deposits generally earn a much higher interest rate. Some banks offer the highest rate on long-term deposits of 10 years. But this is not always the case as some banks also offer the same interest rate on a 1-year deposit as well as a 10-year deposit.
Age – Almost all banks offer a higher rate of interest to senior citizens. This rate is usually 0.5% per annum higher than the regular interest rates. Junior accounts can also stand to earn a higher interest rate. This depends on the bank’s offer on minor accounts.
Choice of bank – Interest rates vary quite a bit between different banks. Currently, the top banks offer recurring deposits starting at 7% per annum interest. Nationalised banks tend to offer a higher interest rate of up to 8% per annum.
Schemes on offer – Banks also have different recurring deposit schemes running. Corporation Bank has a Millionaire Scheme on offer wherein you will receive a million rupees at the end of the scheme. This deposit carries a very high interest rate of 9.25% per annum. So the choice of your deposit scheme will also factor into the interest rate. Depending on the benefits offered with the RD scheme, your interest rate may vary.
Benefits of Recurring Deposit Interest Rates
Safe investment – Recurring deposits carry no risk or very little at all. Choose a stable and secure bank to ensure that your money is safe. Recurring deposits are just a simple investment of your money and do not dabble in the markets. Therefore the interest rate will not fluctuate and you do not stand to lose any money.
Earn while you save – Your deposit will earn interest from your first contribution. The interest accumulated will increase through your tenure. The longer you invest, the more interest you will earn.
Lump sum payout – At the end of the RD tenure, you will receive a lump sum of cash. This amount includes your contribution plus the interest earned. You can use the money to reinvest it or spend it on what you were saving for.
Online access – Most banks offer Internet Banking services which you can use to open deposits, access your accounts and see the progress of your deposit. You can also view the different interest rates offered. You can pick the tenure and deposit amount suitable to you and also earn the highest interest offered.
Loan offers – When you have an RD with a bank, you sometimes get pre-approved loan offers. In other cases, your loan applications will be given preference and your processing might be faster. In addition to this, banks offer concessional interest rates on loans as well.
