Recurring Deposit
Recurring Deposits in Bank:
Best rates: Recurring Deposit interest rate Comparison, 2023(Source: BankBazaar)
Recurring Deposit Interest Rates Bank wise (For an amount up to Rs.2 crore) | ||||||
| Banks | Tenures (p.a.) | |||||
| 1 year | 2 years | 3 years | 4 years | 5 years | More than 5 years | |
| Andhra Bank (Union Bank) RD Interest Rates | 6.30% | 6.60% | 6.70% | 6.70% | 6.70% | 6.70% |
| Allahabad Bank (Indian Bank) RD Interest Rates | 6.10% | 6.30% | 6.50% | 6.40% | 6.40% | 6.30% |
| Axis Bank RD Interest Rates | 5.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
| Bandhan Bank RD Interest Rates | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% |
| BOM RD Interest Rates | 6.00% | 6.00% | 6.00% | 5.75% | 5.75% | 5.75% |
| BOB RD Interest Rates | 5.30% | 5.45% | 5.50% | 5.50% | 5.50% | 5.50% |
| BOI RD Interest Rates | 5.30% | 5.40% | 5.35% | 5.35% | 5.35% | 5.35% |
| Canara Bank RD Interest Rates | 5.50% | 5.60% | 5.75% | 5.75% | 5.75% | 5.75% |
| Central Bank of India RD Interest Rates | 5.45% | 5.50% | 5.50% | 5.50% | 5.60% | 5.60% |
| City Union Bank RD Interest Rates | 6.25% | 7.00% | 7.00% | 6.90% | 6.90% | 6.90% |
| Corporation Bank RD Interest Rates | 6.30% | 6.60% | 6.70% | 6.70% | 6.70% | 6.70% |
| Citi Bank RD Interest Rates | 6.75% | 3.00% | NA | NA | NA | NA |
| DBS Bank RD Interest Rates | 6.00% | 6.50% | 6.25% | 6.25% | 6.25% | 6.25% |
| Deutsche Bank RD Interest Rates | 6.25% | 6.75% | 7.00% | 7.25% | 7.00% | NA |
| Dhanlaxmi Bank RD Interest Rates | 5.60% | 5.60% | 6.00% | 6.10% | 6.10% | 6.10% |
| Federal Bank RD Interest Rates | 5.60% | 5.75% | 6.00% | 6.00% | 6.00% | 6.00% |
| HDFC Bank RD Interest Rates | 6.10% | 6.50% | 6.50% | 6.50% | 6.50% | 6.25% |
| Indian Overseas Bank RD Interest Rates | 5.70% | 5.70% | 5.85% | 5.85% | 5.85% | 5.85% |
| ICICI Bank RD Interest Rates | 6.10% | 6.40% | 6.50% | 6.60% | 6.60% | 6.50% |
| IDBI Bank RD Interest Rates | 6.25% | 6.25% | 6.25% | 6.10% | 6.10% | 4.80% to 6.10% |
| Indian Bank RD Interest Rates | 6.10% | 6.50% | 6.40% | 6.40% | 6.40% | 6.30% |
| IndusInd Bank RD Interest Rates | 6.25% | 7.00% | 6.75% | 6.75% | 6.75% | 6.25% |
| J&K Bank RD Interest Rates | 6.35% | 6.25% | 6.10% | 6.10% | 6.10% | 6.10% |
| Karnataka Bank RD Interest Rates | 6.40% | 6.40% | 5.75% | 5.75% | 5.75% | 5.80% |
| Karur Vysya Bank RD Interest Rates | 6.50% | 6.50% | 7.00% | 6.25% | 6.25% | 6.25% |
| Kotak Mahindra RD Interest Rates | 6.25% | 6.40% | 6.30% | 6.25% | 6.20% | 6.20% |
| Laxmi Vilas Bank RD Interest Rates | 6.00% | 6.50% | 6.25% | 6.25% | 6.25% | 6.25% |
| Oriental Bank of Commerce RD Interest Rates | 5.50% | 5.50% | 5.60% | 5.75% | 5.75% | 5.65% |
| PNB RD Interest Rates | 6.30% | 6.30% | 6.25% | 6.10% | 6.10% | 6.10% |
| Punjab & Sind Bank RD Interest Rates | 6.10% | 6.10% | 6.25% | 6.10% | 6.10% | 6.10% |
| Saraswat Bank RD Interest Rates | 5.50% | 6.25% | 6.40% | 6.25% | 6.25% | 6.35% |
| South Indian Bank RD Interest Rates | 6.40% | 6.40% | 5.90% | 5.90% | 6.00% | 6.00% |
| SBI RD Interest Rates | 5.45% | 5.50% | 6.10% | 6.10% | 6.10% | 6.10% |
| Syndicate Bank RD Interest Rates | 5.50% | 5.60% | 5.75% | 5.75% | 5.75% | 5.75% |
| TMB RD Interest Rates | 6.30% | 6.50% | 6.00% | 6.00% | 6.00% | 6.00% |
| UCO Bank RD Interest Rates | 5.75% | 5.75% | 5.60% | 5.60% | 5.60% | 5.60% |
| Union Bank RD Interest Rates | 6.30% | 6.60% | 6.70% | 6.70% | 6.70% | 6.70% |
| United Bank RD Interest Rates | 5.50% | 5.50% | 5.60% | 5.75% | 5.75% | 5.65% |
| Yes Bank RD Interest Rates | 6.50% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% |
| Post office (5 years) | 5.50% | 5.70% | 5.80 % | NA | 6.7 % | NA |
Recurring Deposit [RD] is one of the Unique Term deposits offered by banks to its customers, making customers regularly invest a small amount from their incomes to deposit into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
In case of money withdrawn from the RD in the bank account before maturity?
Normally banks don’t allow premature and mid-term withdrawals in RD’s.
Customers need to pay a penalty for closing the RD account before the maturity period is completed, for premature withdrawal of the RD, the amount differs from bank to bank.
Difference between Recurring Deposit and Fixed Deposit:
- RD allows customers to make regular deposits and earn decent returns on their investment after the maturity period but in FD the deposit is made using the lump sum amount.
- In RD the interest on the amount is mostly compounded quarterly but in FD the interest amount can be paid quarterly, half-yearly, annually, or on maturity.
Why Invest in RD?
Features of Recurring Deposit account:
- Basically, FDs are rigid, and not ideal for the short term the same as investing in mutual funds for the long term to get high returns but Recurring Deposit is an ideal investment cum savings option for the customer as there’s no market risk involved in it and assumed return is guaranteed.
- There are no such minimum age limits to open an RD account even Minors can open an RD account but under the guardianship of their parents.
- Senior citizens usually get 0.5% more interest rate compared to other investors.
- The monthly saving amount can be as low as 500rs per month.
Almost all the banks in India offer Recurring Deposit Accounts with a term as per their needs.
RD’s and FDs have fixed interest rates fixed by the bank while starting the deposit account and cannot be changed during the tenure, unlike mutual funds whose amount changes with market movement like Equity funds, Balanced funds, etc.
On maturity of RD’s, the individual will be paid a lumpsum amount which includes regular, periodic investments and the interest earned on them.
Recurring deposit calculation formula online:
M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )
Where,
M = Maturity Value
R = Monthly Installment
n = Number of quarters
I = Rate of interest/400
E.g.: Let’s say you deposit Rs. 5,000 per month for a year with an interest rate of 9.00% on a Recurring despot account.
i = 9.00/400
n= compounding frequency (since it is quarterly, it will be 4)
M: ₹ 62,984 with the interest earned of ₹ 2,984.
Check the returns online with the help of a calculator of Recurring Deposits:
Bank RD Calculator Investment Calculator
RD Calculator Excel Sheet Download
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