Best Recurring Deposit Interest Rates in India

Introduction 

Mohan has a regular income, and a significant part of their income is left as savings. Mohan has heard of many investing options and wants to use the sitting money in his account. His colleague’s friend advised him to start a recurring deposit. He also told Mohan to calculate his RD interest rates using a recurring deposit calculator. Mohan had no idea what is the Recurring Deposit and recurring deposit interest rate was. 

If you too have some extra savings sitting in your account, it is best advised to start a recurring deposit. To know the best recurring deposit interest rates and calculator, keep reading this blog.

Recurring Deposit – An Overview

It is a term deposit in which you make regular deposits and earn returns on those investments. It is one of the most risk-free investments and provides high security to your investments. A recurring deposit is best for the people who earn regularly. One can get about 2.50% to 8.50% on recurring deposit interest rates. The investment tenure can range from 6 months to 10 years, depending upon your chosen plan. The flexibility of monthly installments makes rd different from fixed deposits.

What is Recurring Deposit Calculator 

It is important to calculate your interest under your chosen recurring deposit by using a recurring deposit calculator. This is calculated by entailing factors like tenure, type of scheme, invested funds, etc. You can calculate your recurring deposit interest rate by either the recurring deposit calculator or by the following formula-

M= R[(1+i)n-1]/1-(1+i)- 1/3 

In this,

• Maturity value is represented by ‘M.’
• The monthly installment is represented by ‘R.’
• The number of quarters is represented by ‘n.’
• The rate of interest is represented by ‘i’

Best RD Interest Rates from Top Indian Banks

The following list has the best rd interest rates of banks in India

• Axis Bank – For the general public, the rate of interest is 6.75% per annum, and for senior citizens, the interest rate is 7.25% per annum
• IDFC Bank – For the general public, the interest rate is 6.75%-7.75%, and for senior citizens, the interest rate is 6.75-7.25%.
• Punjab National Bank – The interest rate is 4.40%-5.30% for the general public, and the interest rate is 4.90-6.05% for senior citizens.
• IDBI Bank – For the general public, the interest rate is 7.00%-7.15%, and for senior citizens, the interest rate is 7.50-7.65%.
• ICICI Bank – For the general public, the interest rate is 3.50%-5.50%, and for senior citizens, the interest rate is 4.00-6.30%.
• State Bank Of India – For the general public, the interest rate is 4.40%-5.50%, and for senior citizens, the interest rate is 4.90-6.20%.
• HDFC Bank – The interest rate is 4.40%-5.50% for the general public, and for senior citizens, the interest rate is 4.90-6.25%.
• Kotak Mahindra – The interest rate is 4.30%-5.20% for the general public, and the interest rate is 4.80- 5.70% for senior citizens.
• Bank of Baroda – The interest rate is 4.30%-5.25% for the general public, and the interest rate is 4.80-5.75% for senior citizens.
• Indian Bank – For the general public, the interest rate is 6.25%-6.30%, and for senior citizens, the interest rate is 6.75-6.80%.
• Indian Overseas Bank – For the general public, the interest rate is 4.90%-5.20%, and for senior citizens, the interest rate is 5.40-5.70%.
• Union Bank of India – For the general public, the interest rate is 4.40%-5.60%, and for senior citizens, the interest rate is 4.40-5.60%.
• Allahabad Bank – For the general public, the interest rate is 6.25%-6.45%, and for senior citizens, the interest rate is 6.25%-6.45%.
• Yes Bank – For the general public, the rate of interest is 5.00% – 6.50%and for senior citizens, the interest rate is 5.50% – 7.25%
• Central Bank of India – For the general public, the interest rate is 4.20% – 5.00%, and for senior citizens, the interest rate is 4.20% – 5.00% for senior citizens.
• Andhra Bank – For the general public, the interest rate is 4.40% – 5.15%, and for senior citizens, the interest rate is 4.90% – 5.65%.
• Bank of India – For the general public, the interest rate is 4.20% – 5.00%, and for senior citizens, the interest rate is 4.20% – 5.00% for senior citizens.
• UCO Bank – For the general public, the interest rate is 4.70% – 5.00%, and for senior citizens, the interest rate is 4.90% – 5.00% for senior citizens.
• Post Office – For the general public, the rate of interest is 5.80% – 5.80%, and for senior citizens, the interest rate is 5.80% – 5.80%.
• Bank of Maharashtra – For the general public, the rate of interest is 4.00% – 4.90%, and for senior citizens, the interest rate is 4.50% – 4.40%.

Conclusion 

There are many benefits to opening a recurring deposit in 2021. You can get some good rd interest rates if you decide to open a recurring deposit in one of the above-mentioned banks. Recurring deposits are easy as they have to be deposited in installments. For someone with a regular source of income, this can be good as initial investment plans as they are risk-free. Special interest rates are there for senior citizens. If you are looking for a risk-free, safe and stable investment, you can surely start your recurring deposit today.