How is the Interest for a Recurring Deposit Scheme Calculated?
The interest rate for a recurring deposit scheme is calculated based on various factors like the money that your deposit every month, the tenure and the RD scheme that you choose. Generally, the interest rate for RD is the highest when you invest for a period varying between 15 months to 24 months. Also, higher interest rates are offered for women and senior citizens by select banks for Recurring Deposit accounts.
Highest Recurring Deposit Interest Rates
Based on the tenure, here are some of the banks that offer best interest rate for RD schemes.
- Deutsche Bank and Nainital Bank offer an interest rate of 7.25% and 7.50% respectively for recurring deposits of over 5 years tenure.
- For tenure of 1 year, Nainital Bank and DHFL Bank interest rates are 7.50% and 7.75%.
- Nainital Bank offers an interest rate of 7.90% for RD scheme with 2-year tenure.
- For durations of 3 to 4 years, the best interest is offered by Nainital Bank (7.75%), Lakshmi Vilas Bank (7.00%) and Karur Vysya Bank (7.00%).
- The Recurring Deposit scheme offered by Post Office comes with an attractive interest rate of 7.10%.
Best Recurring Deposit Scheme in India
Here are some of the banks that offer very competitive Recurring Deposit schemes with attractive interest and other features.
- Allahabad BankAllahabad Bank offers an interest rate of 6.50% – 6.60% for tenures ranging from 180 Days to 2 years for Recurring Deposits.
- ICICI BankICICI Bank has a flexible RD scheme called the iFlexi RD plan. The customer will incur no penalties for delayed monthly payments. The maximum interest rate that is offered for iFlexi RD is 7.10 percent with tenure options from 13 months to 24 months.
- HDFC BankHDFC Bank offers a maximum interest rate at 6.95% for Recurring Deposit schemes. The tenure varies from 12 months to 120 months. One can invest a minimum amount of Rs 1000 and in multiples of 100 thereafter.
- J&K BankJ&K Bank gives an attractive interest rate of 6.75% for a period of 1 to 4 years RD schemes. For a period of 5 Years and above, the bank offers an interest rate of 6.75%.
- Axis BankAxis Bank RD schemes come with an interest rate of 7.00% for a period of one year to less than 2 years. The recurring deposit can be started with the minimum initial deposit amount of Rs 1000 and in multiples of Rs 500 thereafter.
Interest Rates offered By Banks for Recurring Deposits
Here is a list of interest rates offered for recurring deposit schemes by various banks. The interest rates for RD has been grouped according to the tenure and the bank. The interest rates are subject to frequent change, do inquire with the concerned bank before starting an RD account.
* Rates as of Jan ’18
| Bank | 1 Years | 2 Years | 3 Years | 4 Years | 5 Years | 5+ Years |
|---|---|---|---|---|---|---|
| Andhra Bank | 6.50 | 6.50 | 6.25 | 6.25 | 6.25 | 6.25 |
| Allahabad Bank | 6.50 | 6.60 | 6.50 | 6.50 | 6.50 | 6.50 |
| Axis Bank | 6.75 | 6.25 | 6.25 | 6.25 | 6.25 | 6.25 |
| Bandhan bank | 7.15 | 6.80 | 6.80 | 6.80 | 6.80 | 6.40 |
| Bank of Maharashtra | 6.25 | 6.25 | 6.25 | 6.00 | 6.00 | 6.00 |
| Bank of Baroda | 6.60 | 6.65 To 6.50 | 6.50 | 6.50 | 6.50 | 6.50 |
| Bank of India | 6.25 | 6.60 | 6.50 | 6.30 | 6.25 | 6.25 |
| Canara Bank | 6.50 | 6.30 | 6.20 | 6.20 | 6.00 | 6.00 |
| Central Bank of India | 6.50 | 6.60 | 6.50 | 6.50 | 6.50 | 6.50 |
| City Union Bank | 7.10 | 6.85 | 6.85 | 6.85 | 6.85 | 6.70 |
| Corporation Bank | 6.25 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 |
| Citi Bank | 5.00 | 5.00 | 5.00 | 5.00 | 5.00 | 5.00 |
| DBS Bank | 6.30 | 6.40 | 6.50 | 6.60 | 6.70 | 6.70 |
| Dena Bank | 6.50 | 6.50 | 6.25 | 6.25 | 6.30 | 6.30 |
| Deutsche Bank | 6.00 | 6.75 | 6.75 | 7.00 | 7.00 | 7.25 |
| Dhanalakshmi Bank | 6.00 | 6.60 | 6.50 | 6.50 | 6.50 | 6.50 |
| DHFL Bank | 7.75 | — | — | — | — | — |
| Federal Bank | 6.7 | 6.60 | 6.50 | 6.50 | 6.50 | 6.50 |
| HDFC Bank | 6.75 | 6.25 | 6.00 | 6.00 | 6.00 | 6.00 |
| Post Office | — | — | — | — | — | 7.10 |
| Indian Overseas Bank | 6.25 | — | 6.25 | 6.00 | 6.00 | 6.00 |
| ICICI Bank | 6.75 | 6.75 | 6.50 | 6.50 | 6.50 | 6.50 |
| IDBI Bank | 6.75 | 6.50 | 6.25 | 6.25 | 6.00 | 6.00 |
| Indian Bank | 6.50 | 6.25 | 6.25 | 6.00 | 6.00 | 6.00 |
| Indusind Bank | 6.85 | 6.50 to 6.75 | 6.50 | 6.50 | 6.50 | 6.50 |
| J&K Bank | 6.25 | 6.75 | 6.50 | 6.25 | 6.25 | 6.25 |
| Karnataka Bank | 6.50 | 6.85 | 6.50 | 6.50 | 6.50 | 6.50 |
| Karur Vysya Bank | 6.75 | 6.75 | 7.00 | 7.00 | 7.00 | 7.00 |
| Kotak Mahindra Bank | 6.60 | 6.75 | 6.50 | 6.25 | 6.25 | 6.00 |
| Lakshmi Vilas Bank | 6.75 | 6.90 | 7.00 | 7.00 | 7.00 | 7.00 |
| Nainital Bank | 7.50 | 7.90 | 7.75 | 7.75 | 7.50 | 7.50 |
| Oriental Bank of Commerce | 6.75 | 6.85 | 6.50 | 6.50 | 6.50 | 6.50 |
| Punjab National Bank | 6.60 | 6.50 | 6.50 | 6.25 | 6.25 | 6.25 |
| Punjab and Sind Bank | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 |
| Saraswat bank | 6.35 | 6.35 | 6.40 | 6.40 | 6.40 | 6.40 |
| South Indian Bank | 6.00 | 6.75 | 6.50 | 6.50 | 6.50 | 6.50 |
| State Bank of India | 6.25 | 6.25 | 6.25 To 6.00 | 6.00 | 6.00 | 6.00 |
| Syndicate Bank | 6.15 | 6.50 | 6.60 | 6.60 | 6.50 | 6.50 |
| Tamilnad Mercantile Bank Ltd | 6.90 | 7.00 | 6.90 | 6.90 | 6.90 | 6.90 |
| UCO bank | 6.50 | 6.50 | 6.40 | 6.25 | 6.25 | 6.25 |
| Union Bank of India | 6.75 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 |
| United Bank Of India | 6.10 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
| Vijaya Bank | 6.50 | 6.60 | 6.50 | 6.50 | 6.50 | 6.25 |
| Yes Bank | 6.75 | 6.75 | 6.75 | 6.75 | 6.75 | 6.75 |
