An RD or recurring deposit is a kind of term deposit wherein a fixed amount of money is deposited at fixed intervals, 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. Earlier this week, ICICI Bank revised its interest rates on both recurring deposits and fixed deposits. Recently, big banks such as State Bank of India, HDFC Bank have also revised their interest rates. The revision in interest rates have come after the Reserve Bank of India hiked the repo rate to 6.5 per cent.
Here is a comparison of recurring deposit (RD) rates offered by ICICI Bank, State Bank of India (SBI), HDFC Bank and Punjab National Bank (PNB):
Recurring deposit (RD) rates offered by ICICI Bank:
| Maturity Period | Rate of Interest (% p.a.) w.e.f August 14, 2018 | |
|---|---|---|
| General | Senior Citizen | |
| 6 months | 6 | 6.5 |
| 9 months | 6.5 | 7 |
| 12 months | 6.75 | 7.25 |
| 15 months | 7 | 7.5 |
| 18 months | 7 | 7.5 |
| 21 months | 7 | 7.5 |
| 24 months | 7 | 7.5 |
| 27 months | 7.25 | 7.75 |
| 30 months | 7.25 | 7.75 |
| 33 months | 7.25 | 7.75 |
| 36 months | 7.25 | 7.75 |
| Above 3 years upto 5 years | 7.25 | 7.75 |
| Above 5 years upto 10 years | 7 | 7.5 |
Recurring deposit (RD) rates offered by State Bank of India:
Revised from July 30, 2018:
| Term | Interest rate for general public (% per annum) | Interest rate for senior citizens (% per annum) |
|---|---|---|
| 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 |
Recurring deposit (RD) rates offered by HDFC Bank:
Revised from August 6, 2018:
| Period | Interest Rate (per annum) | Senior Citizen Rates (per annum) | Effective From |
|---|---|---|---|
| 6 Months | 6.25% | 6.75% | June 06,2018 |
| 9 Months | 6.75% | 7.25% | August 06,2018 |
| 12 Months | 7.25% | 7.75% | August 06,2018 |
| 15 Months | 7.25% | 7.75% | August 06,2018 |
| 24 Months | 7.25% | 7.75% | August 06,2018 |
| 27 Months | 7.10% | 7.60% | August 06,2018 |
| 36 Months | 7.10% | 7.60% | August 06,2018 |
| 39 Months | 7.10% | 7.60% | August 06,2018 |
| 48 Months | 7.10% | 7.60% | August 06,2018 |
| 60 Months | 7.10% | 7.60% | August 06,2018 |
| 90 Months | 6.00% | 6.50% | Jan 06,2017 |
| 120 Months | 6.00% | 6.50% | Jan 06,2017 |
Recurring deposit (RD) rates offered by Punjab National Bank (PNB):
Domestic TD less than Rs 1 crore w.e.f. August 1, 2018:
| Sl. No | Period | ROI (% p.a.) | For Senior Citizen ROI (% p.a.) |
|---|---|---|---|
| 1 | 7 to 14 days | 5.7 | 6.2 |
| 2 | 15 to 29days | 5.7 | 6.2 |
| 3 | 30 to 45 days | 5.7 | 6.2 |
| 4 | 46 to 90 days | 6.35 | 6.85 |
| 5 | 91 to 179 days | 6.35 | 6.85 |
| 6 | 180 days to 270 Days | 6.35 | 6.85 |
| 7 | 271 days to less than 1 year | 6.35 | 6.85 |
| 8 | 1 year | 6.75 | 7.25 |
| 9 | above 1 year & upto 3 years | 6.75 | 7.25 |
| 10 | above 3 year & upto 5 years | 6.25 | 6.75 |
| 11 | above 5 years & upto 10 years | 6.25 | 6.75 |
However, small finance banks generally offer higher interest rates as compared to many leading banks.
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