ICICI Bank Revises Recurring Deposit Interest Rates; What Others Pay
ICICI Bank recently revised its recurring deposits interest rates. Recurring Deposit or RD is a kind of term deposit under which one needs to deposit a fixed amount at fixed interval, 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. 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. 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 ICICI Bank, HDFC Bank and State Bank of India (SBI):
ICICI Bank
Recurring deposit rates offered by ICICI Bank:
| Rate of Interest (% p.a.) w.e.f November 15, 2018 | ||
|---|---|---|
| Maturity Period | General | Senior Citizen |
| 6 months | 6.25 | 6.75 |
| 9 months | 6.5 | 7 |
| 12 months | 6.9 | 7.4 |
| 15 months | 7.1 | 7.6 |
| 18 months | 7.1 | 7.6 |
| 21 months | 7.1 | 7.6 |
| 24 months | 7.1 | 7.6 |
| 27 months | 7.5 | 8 |
| 30 months | 7.5 | 8 |
| 33 months | 7.5 | 8 |
| 36 months | 7.5 | 8 |
| Above 3 years upto 5 years | 7.25 | 7.75 |
| Above 5 years upto 10 years | 7 | 7.5 |
HDFC Bank
Recurring deposit rates offered by HDFC Bank:
| Period | Interest Rate (per annum) | Senior Citizen Rates (per annum) | Effective From |
|---|---|---|---|
| 6 Months | 6.25% | 6.75% | Jun 06,2018 |
| 9 Months | 6.75% | 7.25% | Aug 06,2018 |
| 12 Months | 7.30% | 7.80% | Nov 06,2018 |
| 15 Months | 7.30% | 7.80% | Nov 06,2018 |
| 24 Months | 7.30% | 7.80% | Nov 06,2018 |
| 27 Months | 7.40% | 7.90% | Nov 06,2018 |
| 36 Months | 7.40% | 7.90% | Nov 06,2018 |
| 39 Months | 7.25% | 7.75% | Nov 06,2018 |
| 48 Months | 7.25% | 7.75% | Nov 06,2018 |
| 60 Months | 7.25% | 7.75% | Nov 06,2018 |
| 90 Months | 6.50% | 7.00% | Nov 06,2018 |
| 120 Months | 6.50% | 7.00% | Nov 06,2018 |
State Bank of India
RD interest rates according to the bank's website - sbi.co.in:
| Maturity period (term) | Interest rate with effect from July 30, 2018 | |
|---|---|---|
| General public | Senior citizen | |
| 7 days to 45 days | 5.75 | 6.25 |
| 46 days to 179 days | 6.25 | 6.75 |
| 180 days to 210 days | 6.35 | 6.85 |
| 211 days to less than 1 year | 6.4 | 6.9 |
| 1 year to less than 2 year | 6.7 | 7.2 |
| 2 years to less than 3 years | 6.75 | 7.25 |
| 3 years to less than 5 years | 6.8 | 7.3 |
| 5 years and up to 10 years | 6.85 | 7.35 |
| (Source: sbi.co.in) | ||
However, small finance banks generally offer higher interest rates as compared to many leading banks.