Best Interest Rates On Recurring Deposit In India

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Recurring Deposit can be a good approach for those who are looking to save on monthly basis. Ideal for those who are risk averse and looking for decent returns.

Interest earned on RDs are not tax free, so it is best for people who fall in lower income tax bracket.

If one wants to avoid TDS on RDs can do so by investing in Post Office Recurring Deposits

Post Office recurring deposit offers interest rates at 8.4 per cent which is compounded quarterly.

In Union Budget 2015, the finmin notified that TDS will be applicable on the bank recurring deposits and calculated as per tax slabs. However, not applicable on post office RDs.

Best Interest Rates On Recurring Deposit

Latest Interest rates on Recurring deposits

Bank nameTenureInterest Rate
Bank Of India1 year-3 years8.25 percent
State Bank of Hyderabad2 years8.50 percent
Andra Bank1-2 years8.25 percent
Allahabad Bank2-5 years8.25 percent
Ratnakar Bank1-2 years8.85 percent
Yes Bank1-5 years8.25 percent
Karnataka Bank1 year8.35 percent
Lashmi Vilas bank1 year8.60 percent
DCB Bank2-5 years8.60 percent
Central Bank of India1 year8.35 percent
Dhanalakshmi Bank1-2 years8.30 percent
Indus Ind Bank1 year8.35 percent

Note that interest rates tend to change without notification. Please verify from the respective bank before locking the amount.

Read more about: recurring deposit, interest rates
Story first published: Friday, August 7, 2015, 12:12 [IST]
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