Highest RD (recurring deposit) interest rates: SBI vs Yes Bank vs PNB vs HDFC Bank vs ICICI Bank vs Post Office RD This amount can be used to cover a range of short-term expenses, such as trips, the annual cost of raising children, wedding expenses, and further education expenses
For those who are salaried, investing in RDs is a viable option because they do not require a big investment. Recurring deposits will help individuals to invest regularly and build a large corpus over time.Upon an RD's maturity, the principal sum and interest will be returned. This sum can be applied to a variety of short-term financial needs, including vacations, children's yearly tuition, wedding costs, and higher education costs.
Just like fixed deposit, recurring deposit interest rates will vary with deposit tenure and the bank. Here is a quick comparison of RD interest rates of top banks such as SBI, ICICI Bank, HDFC Bank, PNB, Yes Bank.
Also read: FD premature withdrawal charges: SBI vs HDFC Bank vs ICICI Bank vs PNB vs Yes Bank
SBI RD
The minimum RD Period in SBI Bank is 12 months and maximum is 120 months with minimum deposit amount Rs. 100/- per month (thereafter in multiples of Rs. 10/-). Interest rate offered is same as applicable on term deposits for public and Senior Citizens. The bank offers interest rate between 6.80% to 7% for regular citizens and 7.30% to 7.50% for senior citizens. The rates are effective from February 15, 2023.
Kotak Mahindra Bank RD rates
The minimum tenure for RD in Kotak Mahindra Bank is 6 months and interest rate starts from 6% to 7.20% for regular citizens and 6.50% to 7.70% for senior citizens. The rates are effective from March 20, 2023.
ICICI Bank RD rates
ICICI Bank offers interest rate between 4.75% to 7.10% for regular citizens and 5.25% to 7.50% for senior citizens. The rates are effective from February 24, 2023. According to the ICICI Bank website, “Recurring Deposits will be available for a minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years.”
Post Office RD
India Post offers interest rate of 5.8 % per annum on a 5-Year Post Office Recurring Deposit Account. RD account can be closed prematurely after 3 years from the date of account opening. Note that interest rate will be revised every quarter by government.
Yes Bank RD rates
For regular residents, YES Bank offers recurring deposit interest rates ranging from 6% to 7.50% with terms ranging from six months to ten years. For senior citizens, the bank offers interest rate between 6.50% to 8%. These rates are effective from February 21, 2023.
PNB RD rates
PNB offers interest rates ranging between 5.5% and 7.25% on recurring deposits maturing between six months and 10 years to regular citizens and 6% to 7.50% to senior citizens. These rates are effective from February 20, 2023.
How does an RD Account work?
According to the IDFC FIRST Bank website, “Unlike a regular fixed deposit, wherein you invest a lumpsum amount at one go for a predetermined tenure, a recurring deposit account lets you invest a specified amount each month until the end of the tenure. The monthly amount generally remains unaltered during the tenure. One of the benefits of such an investment is that you can invest a sum that doesn't hamper your monthly expenditure; instead, it can help increase your future funds.”
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This story originally appeared on: India Times - Author:Faqs of Insurances
