A recurring deposit (RD) helps one build savings through regular deposits over a fixed period of time. RD accounts offer you the option of investing a small portion of your money unlike fixed deposit (FD) accounts, which require you to block your money until a given period of time. "Recurring deposit is a good scheme for risk-averse investors who are unwilling to take any risk on their investment. These schemes allow them to accumulate certain funds without any risk and worry. On maturity, the individual will be paid a lump sum amount which includes the regular, periodic investments and the interest earned on them," said Abhinav Angirish-Founder-www.investonline.in.
State Bank of India (SBI), the largest lender of the country, has recently revised its fixed deposit interest rates. The interest rates on its recurring deposits are the same as those on its fixed deposits. Post offices also offer the option of opening an RD.
Given below is a comparison of interest rates on recurring deposits offered by SBI, post offices:
Interest rates offered by SBI on recurring deposits
SBI requires customers to make monthly deposits of minimum Rs.100 and in multiples of Rs 10, according to sbi.co.in. There is no maximum limit. The minimum period of SBI RDs is 12 months and the maximum is 120 months.
(All figures in % per annum)
| Tenors | Existing for Public w.e.f. 28.03.2018 | Revised For Public w.e.f. 28.05.2018 | Existing for Senior Citizens w.e.f. 28.03.2018 | Revised for Senior Citizens w.e.f. 28.05.2018 |
| 7 days to 45 days | 5.75 | 5.75 | 6.25 | 6.25 |
| 46 days to 179 days | 6.25 | 6.25 | 6.75 | 6.75 |
| 180 days to 210 days | 6.35 | 6.35 | 6.85 | 6.85 |
| 211 days to less than 1 year | 6.4 | 6.4 | 6.9 | 6.9 |
| 1 year to less than 2 year | 6.4 | 6.65 | 6.9 | 7.15 |
| 2 years to less than 3 years | 6.6 | 6.65 | 7.1 | 7.15 |
| 3 years to less than 5 years | 6.7 | 6.7 | 7.2 | 7.2 |
| 5 years and up to 10 years | 6.75 | 6.75 | 7.25 | 7.25 |
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