Recurring deposit (RD) interest rates compared: SBI vs HDFC Bank vs ICICI Bank vs Yes Bank vs PNB
Interest rates on RDs are comparable to those on fixed deposits, but what sets RDs apart is the flexibility of monthly installments. A recurring deposit account allows you to invest a specific amount each month until the end of the tenure, unlike a typical fixed deposit, which requires a single sum investment at one time. You have the advantage of receiving a better rate of return on your consistent monthly deposits when you invest in recurring deposits (compounded quarterly).A recurring deposit plan gives you the option to accumulate savings through regular monthly deposits of a certain amount throughout time and have enough money to accomplish specific financial objectives.
The interest earned on a bank recurring deposit is taxable. Here are top banks offering best RD interest rates to general citizens.
SBI RD interest rates
SBI offers recurring deposit interest rates ranging from 6.80% to 7% for terms ranging from one year to ten years. The minimum monthly deposit is Rs. 100 (followed by multiples of Rs. 10). SBI charges a penalty for late payment of instalments. If six consecutive instalments are not received, the account will be closed prematurely and the amount paid to the account holder.
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HDFC Bank RD interest rates
HDFC Bank offers interest rate varying between4.50 percent on 6 months tenure. The interest rate offered for 9month, 12 month and 15 months is 5.75%, 6.60%, and 7.10%, respectively. For tenure of 24 Months, 27 months, 36 months, 39 months, 48 months, 60 months, 90 months and 120 months, HDFC Bank offers 7% interest rate. The interest on a recurring deposit is calculated from the payment date.
ICICI Bank RD interest rates
ICICI Bank offers interest rates between 4.75% to 7.10% for regular citizens and 5.25% to 7.50% for senior citizens. 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.”
Yes Bank RD interest rates
Yes Bank offers interest rates ranging from 6.10% to 7.75% on terms ranging from 6 months to 5 years. RD can be scheduled for tenancy in 3 month increments (e.g., 6 months, 9 months, 12 months...). The bank will charge a 1% penalty for late payments.
PNB RD interest rates
PNB offers interest rates ranging from 4.50% to 7.25%, with terms ranging from 6 months to 120 months in multiples of one month. If you deposit your pending installments before the maturity date, you will be charged a penalty of Rs.1.00 per Rs.100 every month.
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This story originally appeared on: India Times - Author:Faqs of Insurances
