A recurring deposit (RD) is one of the most popular safe and secure investment options in India. In this type of investment, one can deposit a small amount every month like an instalment to create a corpus without feeling any burden. RD accounts can be opened with any bank or post office. Even one can open more than one RD account simultaneously. There is no maximum limit of deposit in a recurring deposit account. The minimum is Rs 100.
Interest rates of RDs vary from bank to bank. Some private sector banks are promising slightly higher interest rates on recurring deposits. Let’s take a look:
Yes Bank is one of the well-known private sector banks in the country. It offers recurring deposit accounts for tenures of 6 months to 10 years. The interest rates on Yes Bank RD’s range from 5% to 6.50% per annum to the general public. The private lender is offering 50 bps to 75 bps or 0.50 percentage point to 0.75 percentage point additional interest rate to senior citizens. That’s why customers above 60-years now can get 5.50% to 7.75% interest rates on RD’s.
This private sector bank offers recurring deposit accounts for the tenor of 6 months to 10 years. RBL Bank offers recurring deposit interest rate from 5% to 6.30% to general customers. Senior citizens will get an additional 0.50% interest rate on RDs.
One can open a recurring deposit account in IndusInd Bank with a minimum deposit amount of Rs 500 for a maturity period of 9 months to 61 months and above. This private sector bank is offering minimum 5.50% to maximum 6% interest rates on RD accounts to general customers whereas senior citizens will get an additional 50 basis points.
IDFC First Bank offers recurring deposit account with tenure from six months to 120 months. It is offering up to 6% interest rate on RDs. Senior citizens are eligible to get an additional rate of 50 basis points.
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