Recurring Deposit Interest Rates: Here's What Public, Private Banks Offer
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. Unlike a fixed deposit (FD) account, in which a lump-sum amount is locked in for a defined period against a fixed return, a recurring deposit (RD) account allows the investor to invest fixed amount of funds at regular intervals; for instance, every month. On maturity, the depositor is paid a lump-sum amount which includes the periodic investments and the interest income earned on them.
Here is a comparison of recurring deposit (RD) rates offered by State Bank of India, Punjab National Bank, Kotak Mahindar Bank,ICICI Bank and HDFC Bank:
State Bank of India
The following RD interest rates are offered by SBI, according to the bank's website - sbi.co.in:
| Tenors | Revised For Public w.e.f. 22.02.2019 | Revised for Senior Citizens w.e.f. 22.02.2019 |
|---|---|---|
| 1 year to less than 2 year | 6.8 | 7.3 |
| 2 years to less than 3 years | 6.8 | 7.3 |
| 3 years to less than 5 years | 6.8 | 7.3 |
| 5 years and up to 10 years | 6.85 | 7.35 |
Punjab National Bank
The following RD interest rates are offered by PNB, according to the bank's website - pnbindia.in:
| Period | General public | Senior citizen |
|---|---|---|
| 180 days to 270 Days | 6.35 | 6.85 |
| 222 days | 6.6 | 7.1 |
| 271 days to less than 1 year | 6.35 | 6.85 |
| 333 days | 7.1 | 7.6 |
| 1 year | 6.75 | 7.25 |
| 555 days | 6.85 | 7.35 |
| above 1 year & up to 3 years | 6.75 | 7.25 |
| above 3 year & up to 5 years | 6.25 | 6.75 |
| above 5 years & up to 10 years | 6.25 | 6.75 |
Kotak Mahindra Bank
The following RD interest rates are offered by Kotak Bank, according to the bank's website - kotak.com:
| Recurring deposit rates effective from March 26, 2019 | ||
|---|---|---|
| Tenure | Interest Rate p.a. | Senior Citizen Rates p.a. |
| 6 Months | 6.60% | 7.10% |
| 9 Months | 7.00% | 7.50% |
| 12 Months | 7.00% | 7.50% |
| 15 Months | 7.20% | 7.70% |
| 18 Months | 7.20% | 7.70% |
| 21 Months | 7.20% | 7.70% |
| 24 Months | 7.10% | 7.60% |
| 27 Months | 7.10% | 7.60% |
| 30 Months | 7.10% | 7.60% |
| 33 Months | 7.10% | 7.60% |
| 3 years - less than 4 years | 7.00% | 7.50% |
| 4 years - less than 5 years | 7.00% | 7.50% |
| 5 years - 10 years | 6.50% | 7.00% |
ICICI Bank
The following RD interest rates are offered by ICICI Bank with effect from March 7, 2019 according to the bank's website - icicibank.com:
| 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 up to 5 years | 7.25 | 7.75 |
| Above 5 years up to 10 years | 7 | 7.5 |
HDFC Bank
The following RD interest rates are offered by HDFC Bank, according to the bank's website - hdfcbank.com:
| Period | Interest Rate (per annum) |
Senior Citizen Rates |
Effective From |
|---|---|---|---|
| 6 Months | 6.25% | 6.75% | June 06, 2018 |
| 9 Months | 6.75% | 7.25% | August 06, 2018 |
| 12 Months | 7.30% | 7.80% | November 06, 2018 |
| 15 Months | 7.30% | 7.80% | November 06, 2018 |
| 24 Months | 7.30% | 7.80% | November 06, 2018 |
| 27 Months | 7.40% | 7.90% | November 06, 2018 |
| 36 Months | 7.40% | 7.90% | November 06, 2018 |
| 39 Months | 7.25% | 7.75% | November 06, 2018 |
| 48 Months | 7.25% | 7.75% | November 06, 2018 |
| 60 Months | 7.25% | 7.75% | November 06, 2018 |
| 90 Months | 6.50% | 7.00% | November 06, 2018 |
| 120 Months | 6.50% | 7.00% | November 06, 2018 |
Institutions such as small finance banks and post offices also offer the facility of recurring deposit account.