RD interest rates vary depending on the bank, deposit amount, tenure, etc. This article will tell you the best RD interest rates in banks so you can choose an RD that suits your requirements.
RD is short for recurring deposit and it is an investment tool. You can invest a small sum of money every month, and earn an interest while saving your funds. They are perfect for short and long-term goals.
Some major features of RD’s include -
Pay as less as Rs.10 every month
Earn interest from 2.65% to 8.35%
Auto-debit of monthly installment
Tenures between 6 months to 10 years
A loan facility of up to 90% of the RD amount
A list of recurring deposit interest rates of top banks is given below for you to choose the best RD for you -
|
Name of the Bank |
General Public |
Senior Citizens |
|
3.50% - 7.00% |
4.00% - 7.50% |
|
|
5.25% - 6.75% |
5.75% - 7.25% |
|
|
4.00% - 6.87% |
4.00% - 7.40% |
|
|
2.80% - 7.25% |
2.80% - 7.75% |
|
|
3.50% - 6.50% |
3.50% - 6.50% |
|
|
4.00% - 7.30% |
4.50% - 7.80% |
|
|
2.90% - 7.30% |
3.40% - 7.80% |
|
|
2.65% - 7.00% |
3.15% - 7.50% |
|
|
2.80% - 6.25% |
3.30% - 6.75% |
|
|
4.50% - 6.00% |
5.00% - 6.50% |
|
|
3.50% - 6.85% |
4.00% - 7.35% |
|
|
3.00% - 7.00% |
3.50% - 7.75% |
|
|
4.50% - 7.00% |
5.00% - 7.75% |
|
|
4.75% - 6.90% |
5.25% - 7.50% |
|
|
4.50% - 7.00% |
5.00% - 7.50% |
|
|
IndusInd Bank |
6.35% - 7.00% |
6.85% - 7.50% |
|
3.00% - 4.80% |
3.50% - 5.30% |
|
|
6.00% - 7.00% |
6.50% - 7.60% |
|
|
5.25% - 7.25% |
5.75% - 7.75% |
|
|
6.10% - 7.75% |
6.60% - 8.25% |
|
|
3.00% - 7.85% |
3.75% - 8.35% |
|
|
4.00% - 7.50% |
4.00% - 7.50% |
|
|
5.00% - 7.00% |
5.00% - 7.50% |
|
|
5.00% - 6.50% |
5.00% - 7.00% |
|
|
7.00% - 8.00% |
7.00% - 8.00% |
|
|
3.00% - 7.50% |
3.50% - 8.00% |
|
|
3.50% - 7.10% |
4.00% - 7.60% |
|
|
3.50% - 7.10% |
3.50% - 7.10% |
|
|
4.00% - 7.50% |
4.50% - 8.00% |
Note: Rates mentioned as of 4th March 2024 and can be revised by the bank without any notice. Please check with the bank before opening an account.
To earn the best RD interest rates, you need to open a recurring deposit account. While the eligibility criteria will vary depending on your bank, the following are the general criteria required by major banks -
For regular accounts, the person must be aged between 18 and 60
Above the age of 60, senior RD accounts can be opened
Above the age of 80, super senior RD accounts can be opened
For junior accounts, the person must be between ages 10 and 18
A guardian is required to open a minor account
RD accounts can also be opened jointly, by a club, group, or an organization
If you already have a bank account with the bank that you want to open a RD account with, you will not need to submit any documents whatsoever. Even if you do not have an account with the bank, you need very few documents to start a recurring deposit account -
An application form for RD is required, however, it can also be opened through internet banking without an application form
Your identity and address proof
Passport-size photographs, if required by the bank
KYC documents, if required by the bank
RD interest rates depend on a variety of factors including your type of bank account, age, tenure, and installment amount. Banks have different interest rates for domestic, NRE, and NRO accounts, and they also give more interest if you are above the age of 60.
Medium tenure RDs mostly will earn the highest RD interest rates, as compared to short and long tenures. Apart from this, banks have a separate slab of interest rates for funds above Rs.2 Crore.
Now that you know the interest rates offered by the top banks, you can choose the right RD for you.
The interest rates depend on the tenure you choose and the installment amount. However, Deutsche Bank India has the highest interest rates going up to 8.00% for the general public.
The choice of bank for RDs depends completely on personal preference. Make sure to choose an RD that not only gives you high returns but also has other facilities like low penalties on missed payments, loan facilities, and an easy pre-mature withdrawal procedure.
The amount you will get at the end of your tenure will depend on the interest rate offered by your bank. Let us consider you get a 6.50% interest on Rs.5,000 per month for 5 years. At the end of your tenure, you will get a lump sum of Rs.3,54,954.
Most banks offer up to 7% interest rate on recurring deposits. SBI, Indian Bank, IOB, UCO Bank, Axis Bank, and HDFC Bank are some major banks where you can expect an interest of up to 7%.
Unfortunately, recurring deposits are not tax-saving investments. You have to pay taxes based on your tax slab on the interest earned from an RD.
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