A Recurring Deposit (RD) is one of the most preferred debt investment products in the personal finance journey when it comes to setting up a safe investment by making monthly contributions and avoiding lump sum. In this investment plan investors are able to make monthly deposits as well as get returns similar to fixed deposits. Deposits will also get coverage up to Rs. 5 lakhs by DICGC, which adds another degree of protection to both your investment and returns. The interest will be risk free, as the name suggests, but investors should be aware that bank RD investments are not eligible for tax deduction under Section 80C of the Income Tax Act of 1961. However, TDS on recurring deposits is deductible at a single rate. of 10% on interest earned in excess of 40,000 under section 194A of the Income Tax Act of 1962. Hence, individuals looking for SIP-like deposits by eliminating lump sum deposits in fixed deposits can compare the interest rates of recurring deposits of some of the top financial institutions.
SBI RD Rates
State Bank of India (SBI), the country’s largest lender, offers similar interest rates on FDs and RDs. As per the latest revision of the Bank dated 14.06.2022, the customers will get the interest rates on the deposit accounts mentioned below.
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HDFC Bank RD Rates
HDFC Bank last changed the interest rates on recurring deposits on June 17, 2022. The bank is now offering interest rates ranging from 3.75 percent to 5.75 percent for non-senior citizens and 4.25 percent to 6.50 percent for senior citizens. Depositing in RD for a period of 6 months to 120 months.
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ICICI Bank RD Rates
Recurring deposit in ICICI Bank will be offered for a minimum period of 6 months and thereafter in multiples of 3 months for a maximum period of 10 years. The bank revised its interest rates on RDs on June 22, 2022 and as a result, it currently offers interest rates ranging from 3.75 per cent to 5.75 per cent for general public and 4.25 per cent to 6.50 per cent for senior citizens.
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IDFC First Bank RD Rates
Recurring deposits are available from IDFC First Bank with maturity periods ranging from 6 to 120 months. Any person can deposit a minimum of Rs. 100 and maximum Rs. 75,000 respectively. With effect from 1st July 2022, the bank is now offering an additional interest rate of 4.50% – 6.00% for general public and 0.50% for senior citizens.
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RBL Bank RD Rates
The minimum tenure of the Recurring Deposit in RBL Bank is 7 days and the maximum tenure is 240 months. Additionally, the minimum recurring deposit is Rs. 1,000 can be done. The bank currently offers interest rates on recurring deposits ranging from 3.25 percent to 5.75 percent for general public and 3.75 percent to 6.25 percent for older people.
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Yes Bank RD Rates
Recurring deposits are allowed by Yes Bank for a period of 6 months to 120 months. With effect from June 18, 2022, the bank is offering an interest rate of 4.75% – 6.50% for regular customers and 5.25% – 7.25% for senior citizens.
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Post Office RD
To open a 5-year post office recurring deposit account, a minimum amount of Rs 100 per month or in multiples of Rs 10 should be deposited without any upper limit. Post Office RD Account, as its name suggests, has a maturity period of 5 years (60 monthly contributions), from the date it is opened. However, the account holder has the option to extend the account for an additional 5 years and the rate of interest will be applicable on the extended account when the account was initially created. Post Office RD accounts can be prematurely closed after three years from the date of account opening; However, if premature withdrawal is made even a day before maturity, the rate of interest will be applicable as for PO Savings Accounts. As per the recent decision by the Finance Ministry to keep rates constant for post office small savings schemes for the second quarter of FY 2013, the post office RD account will continue to offer an interest rate of 5.8% per annum.