Recurring Deposit provides customers with the flexibility to invest an amount of their choice every month and save money easily. Bank Bazaar states that these accounts are offered by most banks and Non-Banking Financial Companies in India with tenures ranging from six months to ten years. On the other hand, a fixed deposit is an investment option in which people invest a certain sum of money for a fixed period at a predetermined rate of interest.
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Apart from the FDs, recurring deposit is guaranteed to be a much safer choice for investment as well. These deposits are a risk-free option and offer an interest rate of 10% as well. However, these interest rates fluctuate with inflation. Banks offer recurring deposits with a tenure that ranges from 1 to 10 years.
The following banks are offering up to 9.6 percent interest rate on recurring deposits-
Suryoday Small Finance Bank-
Senior citizens can earn 9.6 per cent interest rate on recurring deposits with 5-year tenure. For the other customers, the rate is 9.1 per cent.
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Unity Small Finance Bank- This bank will offer an interest rate of 9.5 per cent to senior citizens on RD’s that will mature in 1001 days. Seniors will avail of the interest rate of 8.15 per cent on recurring deposits with 5-year tenure. Other customers will get an interest rate of 9.1 per cent on the deposits with 1001-day tenure and 7.65 per cent on RD’s that will mature in 5 years.
State Bank of India- This Bank is offering an interest rate of 7.5 per cent to senior citizens on recurring deposits with 5-year tenure. The interest rate will be 6.6 per cent for the other customers.
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HDFC Bank- This private lender is giving 7.5 per cent interest rate to senior citizens on the recurring deposits that will mature in 5 years. Other customers can earn 7 per cent interest rate on the deposits.
ICICI Bank- Senior Investors can avail of the interest rate of 7.5 per cent on recurring deposits. Other customers will get the interest rate of 6.9 per cent on RD’s with 5-year tenure.
