Duration of recurring deposit (RD)
Recurring deposits offered by banks range between six months and ten years. The interest rates are set to remain constant throughout the duration. The principle is returned at maturity, much like a fixed deposit, and you have the option of receiving interest payments either all at once or regularly.
With banks hiking their fixed deposit interest rates, recurring deposit interest rates will also increase. Here is a quick comparison of RD interest rates offered by SBI, HDFC Bank, YES Bank, and PNB. (Interest rates are as on February 27, 2023. All data have been taken from banks’ websites).
SBI RD interest rates
The State Bank of India (SBI) offers interest rates between 6.80 and 7 per cent for maturities ranging from 12 to 120 months. The minimum deposit per month is Rs 100 (subsequently in multiples of Rs 10). These rates are effective from February 15, 2023. The bank will close the account if the customer fails to deposit six consecutive installments. In that case, the remaining sum will be paid to the account holder.
PNB RD interest rates
PNB offers interest rates ranging between 5.5 per cent and 7.25 per cent on recurring deposits maturing between six months and 10 years to regular citizens. These rates are effective from February 20, 2023. Payment of RD will be due on maturity or one month after the deposit of the last installment, whichever is later.
HDFC Bank RD interest rates
HDFC Bank offers RD interest rates ranging between 4.5 per cent and 7.10 per cent for tenures maturing between six months and 120 months to regular citizens. The 15-month rate with an interest rate of 7.10% is effective February 24, 2023; other tenure interest rates are effective January 24, 2023.
YES Bank RD rates
YES Bank offers recurring deposit interest rates between 6 per cent and 7.50 per cent for tenures ranging from six months to 10 years for regular citizens. These rates are effective from February 21, 2023.
ICICI Bank RD rates
ICICI Bank offers RD interest rates between 4.75 per cent and 7.10 per cent for tenures ranging from 6 months to 10 years for regular citizens. The minimum deposit is Rs 500 per month and thereafter, deposits in multiples of Rs 100. These rates are effective from February 24, 2023.
Kotak Mahindra Bank RD rates
Kotak Mahindra Bank offers recurring deposit interest rates between 6 per cent and 7.20 per cent for tenures ranging from 6 months to 10 years for regular citizens. These rates are effective from February 27, 2023.