Bank RDs are an ideal savings-cum-investment instrument.
• Most of the major banks in India offer Recurring Deposits (RDs) with tenures often ranging between 6 months to 10 years.
Like Fixed Deposits (FDs), Recurring Deposits (RDs) are also popular investment instruments especially among the salaried and senior citizens. Recurring deposit scheme provides an opportunity to build savings through regular monthly deposits over a period. However, RDs are different from fixed deposits (FDs). An RD account holder can choose to invest a fixed amount every month while earning good interest on the amount. RDs are an ideal savings-cum-investment instrument.
Most of the major banks in India offer RDs with tenures ranging from 6 months to 10 years.
SBI RD Rates
SBI has increased the interest rates on RD with effect from October 22. The bank offers interest rates ranging from 6.10% to 6.25% on RDs maturing in 1 year to 10 years.
1 year to less than 2 years - 6.10
2 years to less than 3 years - 6.25
3 years to less than 5 years - 6.10
5 years and up to 10 years - 6.10
HDFC Bank RD Rates
HDFC Bank has increased its interest rates on Recurring Deposits (RDs) for all tenors. The bank gives 4.50% on deposits maturing in 6 months and HDFC Bank 5.25% on deposits maturing in 9 months. Deposits maturing in 12 months will now get an interest rate of 6.10%, and those maturing in 15 months to 24 months will now get an interest rate of 6.15%. Deposits maturing in 90 months to 120 months will now get an interest rate of 6.20%. These rates are effective from 26 October.
ICICI Bank RD Rates
ICICI Bank offers RD from 6 months to 10 years. Depending on the tenure you choose, these deposits will earn you an interest rate of 4.25% to 6.20% for 6 months. These rates are effective from October 18. The lender mentioned on its site, “The recurring deposit will be available for a minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum of 10 years.”
