A Recurring Deposit or RD as it is commonly called is a unique term deposit offered by banks. It is an investment tool which permits those with an ability to make regular deposits earn decent returns on their investment. Basically consisting of regular deposits and an interest component, a Recurring Deposits provides flexibility and ease of use to individuals.
Compare and Get Best Recurring Deposit (RD) Interest Rates in India
When investing in a recurring deposit, the first thing to look for is the interest rates that are being offered. The table below will let you examine the top interest rates from various banks in Indian according to the tenure of the RD. (Interest rates as of Apr 2018)
| Bank | Tenure | Highest Interest Rate |
| Allahabad Bank | 1 year to less than 3 years | 6.75% |
| Andhra Bank | 1 year to 2 years | 6.85% |
| Axis Bank | 1 Year to < 18 months | 7.5% |
| Bandhan Bank | 1 Year | 7.5% |
| Bank of Baroda | 1 Year | 6.9% |
| Bank of India | 1 Year & above but less than 2 Years | 6.7% |
| Bank of Maharashtra | 3 Years | 6.25% |
| Bharatiya Mahila Bank | 1 Year to 3 Years | 7% |
| Canara Bank | 1 Year | 6.5% |
| Central Bank of India | 1 Year to 2 years | 6.6% |
| CitiBank | 365 days to 731 days | 5.25% |
| City Union Bank | 1 Year | 7.1% |
| Corporation Bank | 1 Year to less than 3 years | 6.75% |
| DBS Bank | 5 years and above | 6.7% |
| Dena Bank | 5 Year to 10 Years | 7% |
| Deutsche Bank | 5 years | 7.5% |
| Dhanalakshmi Bank | 1 Year and above up to & inclusive of 2 years | 6.6% |
| DHFL Bank | 1 Year to 10 years | 7.75% |
| Federal Bank | 1111 days | 7% |
| HDFC Bank | 12 Months | 6.75% |
| ICICI Bank | 12 to 24 months | 6.9% |
| IDBI Bank | 1 Year | 6.65% |
| Indian Bank | 1 year | 4.75% |
| Indian Overseas Bank | 1 Year | 6.75% |
| IndusInd Bank | 1 Year | 6.85% |
| Jammu and Kashmir Bank | 1 years to less than 5 years | 6.75% |
| Karnataka Bank | 180 days | 6.90% |
| Karur Vysya Bank | 2 years to 3 Years and above | 7% |
| Kotak Mahindra Bank | 1 Year | 6.60% |
| Lakshmi Vilas Bank | 1 year to 10 years | 7% |
| Nainital Bank | 1 year to less than 2 Years | 7.90% |
| Oriental Bank of Commerce | 1 to 2 years | 6.85% |
| Post Office | 1 Year to 5 years | 7.10% |
| Punjab and Sind Bank | 1 year to 10 years | 6.80% |
| Punjab National Bank | 1 year | 6.75% |
| Saraswat Bank | Above 1 Years to 3 years | 6.8% |
| South Indian Bank | 1 year to 2 years | 6.75% |
| State Bank of India | 1 year | 6.75% |
| Syndicate Bank | Above 2 years to 10 years | 6.6% |
| Tamilnad Mercantile Bank | 1 Year to 10 Years | 7% |
| UCO Bank | 1 Year | 6.75% |
| Union Bank of India | 1 Year | 7% |
| United Bank of India | 1 Year | 6.25% |
| Vijaya Bank | 1 to 5 years | 6.5% |
| Yes Bank | 1 Year to 10 years | 7.10% |
Features of Recurring Deposit Account
RD offers you a fixed interest on the invested amount at a specific frequency till the pre-determined term or up on maturity. At the end of the term, the amount upon maturity(which is your invested capital) along with remaining or accumulated interest is paid.
The main features of Recurring Deposit account are as follows:-
- Recurring Deposit schemes aim to inculcate a regular habit of saving among the public.
- The minimum amount that can be deposited varies from bank to bank. It can be an amount as small as Rs.10.
- The minimum period of deposit starts at six months and the maximum period of deposit is ten years.
- The rate of interest is equal to that offered for a Fixed Deposit and is hence higher than any other Savings scheme.
- Premature and mid-term withdrawals are not allowed. However, the bank may allow closing the account before the maturity period, sometimes with a penalty for premature withdrawal.
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RD offers the additional benefit of taking a loan against the deposit, i.e., by using the deposit as a collateral. About 80 to 90% of the deposit value can be given as loan to the account holder.
- The Recurring Deposit can be funded periodically through Standing Instructions which are the instructions given by the customer to the bank to credit the Recurring Deposit account every month from his/her Savings or Current account.
