Recurring Deposits (RD), like Fixed Deposits (FD), are a secure investment option and offer guaranteed returns. While FD requires a lump-sum investment, RDs allows you to invest every month, similar to a Mutual Fund SIP. If you are looking for a risk free investment this Dhanteras, you can consider opening a Recurring Deposit account with any of the banks offering higher interest rates. It’s believed that new investments on Dhanteras bring wealth and RDs could be a better option.
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RDs are known for a disciplined savings approach, allowing investors to accumulate a lump sum savings over the years.
These deposits have fixed tenures, generally ranging from 6 months to 10 years, and offer significant returns depending on a predetermined interest rate. These are an ideal choice for individuals looking to save systematically and earn a modest interest on their savings without the need for a huge initial investment.
Currently, several banks are offering attractive interest rates of up to 8.5% on RDs.
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1. Suryoday Small Finance Bank: The bank provides the highest RD interest rate currently with 8.60% annual interest on investments between 27 and 36 months. For senior citizens, the interest rate is 9.1% for the same tenure.
2. DCB Bank: DCB Bank currently offers the second highest interest rate on RDs in the country, with an 8% annual interest rate for RDs of between Rs 10 lakh and Rs 2 crore. The bank also offers 1.75% annual interest on RD balances of less than Rs 1 lakh.
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3. Deutsche Bank: It is in line with DCB Bank’s interest rates as it offers an interest of 8% per annum on RDs maturing between 27 and 36 months. The bank offers a 7.25% interest rate on RDs for a duration of 5 years.
4. Axis Bank: The popular private sector bank provides a 7.10% interest rate on 5-year RDs of less than Rs 2 crore. For senior citizens, it is 7.60%.
5. HDFC Bank: The private banking sector behemoth offers a 7.1% interest rate on 15-month RDs. For the same duration, senior citizens receive a 7.6% interest rate.
