Recurring Deposit Interest Rates for 1 Year (as on 28 Jan 2022)
The highest interest rate is offered by North East Small Finance Bank Limited (for 12 months) at 7.5% and Utkarsh Small Finance Bank (for 12 months) at 7.25% followed by Suryoday Small Finance Bank (for 12 months) at 7.25%.
Recurring Deposit Interest Rates for 2 Years (as on 28 Jan 2022)
The highest interest rate is offered by North East Small Finance Bank Limited (for 2 years) at 8.00% and Utkarsh Small Finance Bank (for 2 years) at 7.25% followed by Suryoday Small Finance Bank (for 2 years) at 7.25%.
Recurring Deposit Interest Rates for 3 Years (as on 28 Jan 2022)
The highest interest rate is offered by Suryoday Small Finance Bank (for 3 years) at 8.10% and North East Small Finance Bank Limited (for 3 years) at 8.00% followed by RBL Bank Limited (for 3 years) at 7.25%.
Recurring Deposit Interest Rates for 4 Years (as on 28 Jan 2022)
The highest interest rate is offered by Suryoday Small Finance Bank (for 4 years) at 7.75% and Fincare Small Finance Bank Ltd (for 4 years) at 7.30% followed by Utkarsh Small Finance Bank (for 4 years) at 7.25%.
Recurring Deposit Interest Rates for 5 Years (as on 28 Jan 2022)
The highest interest rate is offered by Suryoday Small Finance Bank (for 5 years) at 8.25% and Utkarsh Small Finance Bank (for 5 years) at 7.25% followed by DCB Bank Limited (for 5 years) at 6.95%.
Recurring Account Key Features
- One of the best way of investment of your savings which is offered by almost all the banks in India.
- It facilitates small savings with flexible amounts and tenures.
- It inculcates a regular habit of saving for future needs.
- It is available from minimum of 6 months to a maximum of 10 years with monthly instalments of 12, 24, 36, 48, 60, 72, 84, 96, 108 and 120 months.
- It can be opened for monthly instalments of Rs 100 and thereafter, in multiples of Rs 100.
- Once the RD account becomes active, the customer can not change the amount of the installment or the tenure.
- Standing instruction for transferring the monthly instalments from the customer's SB / CA account is accepted.
- Very popular among the salaried class persons.
- Best for those who can afford to save only a few thousand rupees per month.
- Almost all the banks do quarterly compounding in case of RD.
- On maturity date, the RD holder is paid the maturity value i.e. the principal and the interest earned.
- RD accounts can be prematurely closed and banks generally deduct some penalty as per the clauses of the bank.
- Partial withdrawals are not allowed.
- A penalty is levied upon a delayed payment or missing installment.
- Some banks have a loan facility against the RD on pledging the RD as collateral.
- Nomination facaility is available.