All about Recurring Deposits:
- Most banks offer RDs for tenure of 6 months to 10 Years
- The tenure of RD can be in multiple of 3 months
- The amount of installment and number of installment cannot be changed after opening of the account
- The interest on RD compounds quarterly
- In most cases the interest rate on RD is similar to Fixed Deposits offered by Banks for similar tenures. However some banks like Bank of India gives 0.5% extra interest rate for RD as compared to FD for similar tenure
- The minimum deposit amount can be as low as Rs 100 per month, though some banks may have higher limit
- There can be penalty for missing even one installment.
- In case you miss multiple installments the RD can be closed and amount returned to you
- Most banks offer Loan/Overdraft against the amount available in Recurring Deposit. The interest is generally 0.5% to 1% more than that offered to RD.
- There are penalty clauses for pre-mature withdrawal similar to Fixed Deposits
Recurring Deposit Interest Rates:
Following are the highest Interest rates on Recurring Deposits based on duration:
- For RD duration of 1 Year The Ratnakar Bank & Bandhan Bank offers 8.50%
- For 2 years The Ratnakar Bank offers 9.0% and Bandhan Bank offers 8.50%
- For 3 to 4 Years the best offer is by The Ratnakar Bank offering 8.75% interest rate
- For 5+ Years RD duration the best interest is offered at 8.75% by The Ratnakar Bank and 8.00% by Bandhan Bank & DCB Bank
- The Post Office offers 5 Year Recurring Deposit Scheme offering 7.4% interest rate.
The table below gives the Interest Rates sorted by Bank Name. The best interest rates for all duration have beenhighlighted.
Last Updated: April 8 , 2016
| Banks | 1 Years | 2 Years | 3 Years | 4 Years | 5 Years | 5+ Years |
| Allahabad Bank | 7.50% | 7.50% | 7.25% | 7.25% | 7.25% | 7.25% |
| Andhra Bank | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% |
| Axis Bank | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.25% |
| Bandhan Bank | 8.50% | 8.50% | 8.25% | 8.25% | 8.25% | 8.00% |
| Bank of Baroda | 7.30% | 7.30% | 7.30% | 7.30% | 7.30% | 7.30% |
| Bank of India | 7.30% | 7.30% | 7.30% | 7.30% | 7.30% | 7.25% |
| Bank of Maharashtra | 7.60% | 7.50% | 7.50% | 7.50% | 7.50% | 7.25% |
| Canara Bank | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.50% |
| Catholic Syrian Bank | 7.40% | 7.30% | 7.30% | 7.30% | 7.30% | 7.30% |
| Central Bank of India | 7.75% | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% |
| City Union Bank | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.50% |
| Corporation Bank | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| DCB Bank | 7.90% | 8.15% | 8.20% | 8.20% | 8.20% | 8.00% |
| Dena Bank | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.35% |
| Dhanalakshmi Bank | 7.35% | 7.25% | 7.25% | 7.10% | 7.10% | 7.10% |
| Federal Bank | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| HDFC Bank | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.25% |
| ICICI Bank | 7.40% | 7.50% | 7.50% | 7.50% | 7.50% | 7.25% |
| IDBI Bank | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| IDFC Bank | 8.00% | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% |
| Indian Bank | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% |
| Indian Overseas Bank | 7.30% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| Indus Ind Bank | 8.00% | 7.75% | 7.75% | 7.75% | 7.75% | 7.50% |
| J&K Bank | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 7.75% |
| Karnataka Bank | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| Karur Vysya Bank | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% |
| Kotak Mahindra Bank | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% | 7.25% |
| Lakshmi Vilas Bank | 7.80% | 7.90% | 7.90% | 7.90% | 7.90% | 7.80% |
| Oriental Bank of Commerce | 7.50% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% |
| Post Office 5 Year RD | NA | NA | NA | NA | 7.40% | NA |
| Punjab and Sind Bank | 7.80% | 7.50% | 7.25% | 7.25% | 7.25% | 7.25% |
| Punjab National Bank | 7.50% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% |
| South Indian Bank | 7.60% | 7.60% | 7.60% | 7.50% | 7.50% | 7.50% |
| State Bank of Bikaner and Jaipur | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| State Bank of Hyderabad | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% |
| State Bank of India | 7.25% | 7.50% | 7.00% | 7.00% | 7.00% | 7.00% |
| State Bank of Mysore | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.50% |
| State Bank of Patiala | 7.57% | 7.37% | 7.37% | 7.37% | 7.37% | 7.37% |
| State Bank of Travancore | 7.00% | 7.50% | 7.25% | 7.25% | 7.25% | 7.00% |
| Syndicate Bank | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 6.75% |
| Tamilnad Mercantile Bank Ltd | 7.80% | 7.75% | 7.75% | 7.75% | 7.75% | 7.80% |
| The Ratnakar Bank | 8.50% | 9.00% | 8.75% | 8.75% | 8.75% | 8.75% |
| UCO Bank | 7.70% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| Union Bank of India | 7.65% | 7.55% | 7.55% | 7.50% | 7.50% | 7.25% |
| United Bank of India | 7.00% | 6.75% | 6.50% | 6.50% | 6.50% | 6.50% |
| Vijaya Bank | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| Yes Bank | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% |
Source: Bank Websites
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