Need To Open A Recurring Deposit Account? Compare Interest Rates Paid By Financial Institutions
A recurring deposit or RD is an investment plan meant for long-term wealth creation in which investment is made in small instalments at fixed intervals systematically. Today, an investor can choose from a variety of terms - or maturity period - up to 10 years to set up a recurring deposit account with a bank. In a recurring deposit, a depositor usually makes small value remittances, say Rs.500 or Rs 1,000, at monthly intervals. Unlike any other market-linked instrument, a recurring deposit allows the depositor to earn a pre-assured sum (with applicable tax deduction) without any investment risk after completion of the maturity period.
Here's a comparison of interest rates paid by State Bank of India (SBI), India Post and small finance banks in recurring deposit accounts:
SBI Recurring Deposit Interest Rates 2018
The following interest rates are applicable on deposits below Rs 1 crore, according to the bank's website - sbi.co.in:
SBI recurring deposit interest rates for general public
(All figures in % per annum)
| Tenors | Existing for Public w.e.f. 28.05.2018 | Revised For Public w.e.f. 30.07.2018 |
|---|---|---|
| 7 days to 45 days | 5.75 | 5.75 |
| 46 days to 179 days | 6.25 | 6.25 |
| 180 days to 210 days | 6.35 | 6.35 |
| 211 days to less than 1 year | 6.4 | 6.4 |
| 1 year to less than 2 year | 6.65 | 6.7 |
| 2 years to less than 3 years | 6.65 | 6.75 |
| 3 years to less than 5 years | 6.7 | 6.8 |
| 5 years and up to 10 years | 6.75 | 6.85 |
(Also read: SBI revises fixed deposit interest rates)
SBI recurring deposit interest rates for senior citizens
(All figures in % per annum)
| Tenors | Existing for Senior Citizens w.e.f. 28.05.2018 | Revised for Senior Citizens w.e.f. 30.07.2018 |
|---|---|---|
| 7 days to 45 days | 6.25 | 6.25 |
| 46 days to 179 days | 6.75 | 6.75 |
| 180 days to 210 days | 6.85 | 6.85 |
| 211 days to less than 1 year | 6.9 | 6.9 |
| 1 year to less than 2 year | 7.15 | 7.2 |
| 2 years to less than 3 years | 7.15 | 7.25 |
| 3 years to less than 5 years | 7.2 | 7.3 |
| 5 years and up to 10 years | 7.25 | 7.35 |
HDFC Bank Recurring Deposit Interest Rates 2018
HDFC Bank offers the following interest rates on recurring deposits to resident and NRE customers, according to the bank's website - hdfcbank.com:
| Period | Interest Rate (per annum) | **Senior Citizen Rates (per annum) | Effective From |
|---|---|---|---|
| 6 Months | 6.25% | 6.75% | June 06,2018 |
| 9 Months | 6.40% | 6.90% | June 06,2018 |
| 12 Months | 6.85% | 7.35% | Apr 24,2018 |
| 15 Months | 7.00% | 7.50% | Apr 24,2018 |
| 24 Months | 7.00% | 7.50% | Apr 24,2018 |
| 27 Months | 7.00% | 7.50% | Apr 24,2018 |
| 36 Months | 7.00% | 7.50% | Apr 24,2018 |
| 39 Months | 7.00% | 7.50% | Apr 24,2018 |
| 48 Months | 7.00% | 7.50% | Apr 24,2018 |
| 60 Months | 7.00% | 7.50% | Apr 24,2018 |
| 90 Months | 6.00% | 6.50% | Jan 06,2017 |
| 120 Months | 6.00% | 6.50% | Jan 06,2017 |
ESAF Small Finance Bank Recurring Deposit Interest Rates 2018
ESAF Small Finance Bank provides three types of recurring deposits: regular, fixed and micro. In a Flexi Recurring Deposit, the customer can deposit over and above the contracted monthly instalment up to 10 times the same amount per month. This will help in earning additional income on the surplus deployable funds, according to a bank spokesperson. In a Micro RD, which is a group-based RD product, the deposit can happen at very small values, say Rs 50, at weekly or monthly intervals. This helps in inculcating a savings habit among the lower income group with very low surplus deployable income, the spokesperson said.
| Retail Term Deposit (Less than INR 1 Cr) | Rate of Interest Applicable from 1st April 2018 | |
|---|---|---|
| Domestic | Â | Â |
| Tenure | Normal | Senior Citizen |
| 7 - 14 days | 5.75% | 6.25% |
| 15 - 59 days | 5.75% | 6.25% |
| 60 - 90 days | 6.50% | 7.00% |
| 91 - 179 days | 6.75% | 7.25% |
| 180 - 363 days | 7.50% | 8.00% |
| 364 days | 5.60% | 6.10% |
| 365 - 727 days | 8.75% | 9.25% |
| 728 days | 6.80% | 7.30% |
| 729 - 1091 days | 8.00% | 8.50% |
| 1092 days | 5.66% | 6.16% |
| 1093 - 1819 days | 7.00% | 7.50% |
| 1820 days | 5.65% | 6.15% |
| 1821 - 3652 days | 7.00% | 7.50% |
Utkarsh Small Finance Bank Recurring Deposit Interest Rates 2018
Utkarsh Small Finance Bank accepts investment amounts as small as Rs 100, according to the bank's - utkarsh.bank.
| Tenure | Rate of Interest (% p.a.)-W.E.F. from 14° March 2018 | |
|---|---|---|
| GENERAL | SENIOR CITIZEN | |
| 7 Days to 15 Days | 3.50% | 4.00% |
| 16 Days to 28 Days | 3.50% | 4.00% |
| 29 Days to 45 Days | 4.00% | 4.50% |
| 46 Days to 90 Days | 4.50% | 5.00% |
| 91 Days to 120 Days | 5.00% | 5.50% |
| 121 Days to 179 Days | 5.50% | 6.00% |
| 180 Days to 210 Days | 6.00% | 6.50% |
| 211 Days to 270 Days | 7.00% | 7.50% |
| 271 Days to Less than 1 Year | 7.50% | 8.00% |
| 1 Year to 455 Days | 8.25% | 8.75% |
| 456 Days to Less than 2 Years | 8.50% | 9.00% |
| 2 Years to Less than 3 Years | 7.85% | 8.35% |
| 3 Years to Less than 5 Years | 7.00% | 7.50% |
| 5 Years | 8.00% | 8.50% |
| More than 5 Years to 10 Years | 7.00% | 7.50% |
Post Office Recurring Deposit Interest Rates 2018
India Post, the postal network of the country, allows customers to open a recurring deposit account. The post office RD account, known as the five-year post office recurring deposit account, offers an interest rate of 6.9 per cent, according to India Post's website - indiapost.gov.in.
The recurring deposit can be set up with a minimum amount of Rs. 10 per month. In a recurring deposit, the investor deposits a fixed amount of money at regular intervals. Contribution in the multiples of Rs. 5 can be chosen to invest in the five-year RD account. The interest rate of 6.9 per cent is compounded on a quarterly basis, which means an RD of Rs. 10 - in which the account holder pays Rs. 10 every month - provides a return of Rs. 717.43 in the maturity period of five years, according to India Post.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
