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 | ||
| 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.
