Recurring deposit schemes are available at flexible investment tenure and amount. Compare RD schemes provided by all banks and NBFC in India.
|Banks||Interest Rates||Interest Rate for Seniors|
|Punjab National Bank||4.40% to 6.50%||4.90% to 7.30%|
|City Union Bank||5.75% to 6.50%||4.50% to 6.75%|
|BOI Bank||4.50% to 6.50%||4.50% to 7.25%|
|Canara Bank||5.25% to 6.90%||5.25% to 7.40%|
|Indian Bank||3.50% to 6.70%||4.00% to 7.20%|
|BOB Bank||4.50% to 7.05%||5.00% to 7.55%|
|Central Bank of India||4.50% to 6.75%||5.00% to 7.25%|
|Karur Vysya Bank||6.00% to 7.00%||6.00% to 7.40%|
|Union Bank of India||4.30% to 6.70%||4.80% to 7.20%|
|Tamilnad Mercantile Bank||5.75% to 7.00%||5.75% to 7.50%|
|Karnataka Bank||5.25% to 7.00%||5.25% to 7.40%|
|Dhanlaxmi Bank||6.50% to 6.75%||6.75% to 7.25%|
|South Indian Bank||4.50% to 6.50%||5.00% to 7.00%|
|Federal Bank||5.00% to 7.30%||5.50% to 7.80%|
|Bank of Maharashtra||4.50% to 6.00%||5.00% to 6.50%|
|Indian Overseas Bank||4.50% to 6.80%||5.00% to 7.30%|
|UCO Bank||4.50% to 6.50%||4.75% to 7.00%|
|RBL Bank||4.75% to 7.50%||5.25% to 8.00%|
|State Bank of India||4.50% to 7.00%||5.00% to 7.50%|
|IDBI Bank||4.50% to 6.80%||5.00% to 7.30%|
|Axis Bank||4.75% to 7.10%||4.75% to 7.85%|
|HDFC Bank||4.50% to 7.10%||5.00% to 7.60%|
|ICICI Bank||4.75% to 7.00%||5.25% to 7.50%|
|Indusind Bank||4.75% to 7.50%||5.50% to 8.25%|
|Kotak Mahindra Bank||4.00% to 7.10%||4.50% to 7.60%|
|Yes Bank||5.00% to 7.75%||5.50% to 8.25%|
|Bandhan Bank||4.50% to 7.25%||5.25% to 7.75%|
|IDFC First Bank||5.00% to 7.50%||5.50% to 8.00%|
|Equitas Small Finance Bank||7.25% to 8.20%||8.25% to 8.70%|
|Capital Small Finance Bank||4.75% to 7.15%||5.25% to 7.65%|
|Ujjivan Small Finance Bank||4.75% to 7.50%||5.25% to 8.00%|
|Fincare Small Finance Bank||5.75% to 8.25%||5.75% to 8.05%|
|ESAF Small Finance Bank||5.25% to 8.50%||5.75% to 9.00%|
|North East Small Finance Bank||4.00% to 7.50%||4.75% to 8.00%|
|Suryoday Small Finance Bank||5.00% to 8.50%||5.50% to 9.00%|
|Utkarsh Small Finance Bank||6.50% to 8.00%||7.00% to 8.50%|
|Jana Small Finance Bank||4.00% to 8.50%||4.50% to 9.00%|
|DBS Bank||3.00% to 7.50%||3.00% to 8.00%|
|Post Office||6.90% to 7.50%||6.90% to 7.50%|
Recurring Deposit (RD) scheme is a popular investment option in India. It is a low-risk and guaranteed income term deposit. The RD scheme gives investors the flexibility to choose their desired investment tenure and investment amount. Therefore, you can invest a fixed amount at regular intervals for the entire duration of the deposit tenure. However, RD doesn’t allow premature withdrawals. All premature withdrawals attract penalties.
Furthermore, it is a small savings scheme that is suitable for all kinds of investors. It is a regular savings scheme that inculcates the habit of saving among investors. The minimum investment for a recurring deposit is INR 100, and the amount varies from bank to bank. Furthermore, the interest on the deposit compounds on a quarterly basis, making it a good investment option. The returns from an RD scheme are higher than a savings bank account. The interest rates on RD are in the range of 4.50% to 8.01% p.a. Also, RD offers higher interest rates for senior citizen depositors.
The recurring deposit interest rates change from time to time according to the banks.
Recommended: You should check All Bank Deposit Rates
Following are the features of a recurring deposit:
Following are the advantages and disadvantages of investing in a recurring deposit:
Interest for a recurring deposit is compounded on a quarterly basis.
Financial Quarters for Recurring Deposit:
When you open a recurring deposit account, the interest for your first quarter is calculated as simple interest. For the following quarters, the compounding effect comes into the picture. For example, when you open an RD account in the month of August, the amount will earn only simple interest until the month of September. The interest starts compounding only after the first quarter, i.e. from October.
You can use the following formula to calculate the maturity value of an RD:
M = Maturity value
R = Monthly Instalment
N = number of quarters (tenure)
i = Rate of interest/400
Monthly Instalment (R): This is the monthly amount that is invested in the RD account. Every bank has a different minimum deposit amount, which can be as little as Rs 10.
Rate of Interest (i): The interest rates vary from bank to bank and depend on the RD’s tenure. Furthermore, it depends on the amount of deposit as well.
Tenure (N): It is the duration of the scheme. Usually, the tenure of an RD scheme varies between 6 months to 10 years.
Let’s take the example of Archana, who is planning to invest INR 10,000 every month at 6% interest p.a. for 60 months or 20 quarters. Using the formula, the maturity value is
M = 10,000 [(1+6/400) (20-1)]/1-(1+6/400)(-1/3))
M = INR 7,00,636
The interest earned = INR 1,00,636
The maturity value for Archana on her investment in RD is INR 7,00,636.
The calculations might look simple. However, it is often time consuming, and the scope for human error is high. Therefore, you can use Scripbox’s RD Calculator to get accurate results. The calculator is available online and is free to use.
You can open a recurring deposit online or offline. Following are the steps to open an RD account:
Recommended: If you have post office rd account then learn how to check post office rd account online
Closing a recurring deposit account is very easy. You can do it through any of the following modes:
It is important to note that you cannot close your RD account prematurely. Premature closures are allowed only under certain circumstances. Also, all premature withdrawals attract a certain penalty.
Furthermore, the deposit amount will be credited to the linked savings bank account.
SIP can be an Alternative Investments with Higher returns, here is list of recommended funds you could start sip today.