Best Recurring Deposits With High Interest Rates To Consider

Interest rates on recurring deposits are compounded quarterly and may vary with tenure of the RD. As of now, the interest rates on recurring deposits range from 7.5 per cent to 8.25 per cent per annum

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Recurring deposit is best for those looking to invest small amounts each month to build capital over a period of time.

Interest rates on recurring deposits are compounded quarterly and may vary with tenure of the RD. As of now, the interest rates on recurring deposits range from 7.5 per cent to 8.25 per cent per annum.

Interest earned on RDs are not tax free, which means that interest income earned above Rs 10,000 will be eligible for TDS.

Here are highest interest rates provided by banks on RD:

Bandhan Bank

Bandhan Bank offers an interest rate of 8.25 per cent for 1, 2 years tenure. For 3 years, the bank is providing interest rate at 8 per cent and 7 per cent interest rate for tenures ranging from 6 months to less than one year.

Bandhan Bank is offering 0.75 per cent more than what other banks in India are offering.

The Bank provides different types of fixed deposit such as FD premium, FD Standard, FD Tax Saver and FD Dhan Samriddhi.

While, rates are applicable for deposits less than Rs 1 crore.

City Union Bank

City Union Bank is offering an interest rate of 7.60 per cent for one year tenure where as other banks are offering around 7.40 per cent for same tenure.

For tenure more than one year, the bank offers an interest rate at 7.25 per cent.

In the Union Budget 2015, the government notified that TDS will be applicable on the bank recurring deposits and calculated as per tax slabs.

DCB Bank

The interest rates of DCB Bank are applicable at 7.70 per cent, 7.80 per cent on deposits of one and two year tenure, respectively.

The one good thing is that given the fact that these are 3-4 years deposits, you are saved from falling interest rates. DCB Bank is offering high interest rate of 7.90 per cent for tenure more than 3 years.

IDFC Bank

IDFC Bank is offering RD interest rate at 8 per cent for 2 years. For one year, it provides 7.75 per cent interest rate.

RD can be booked for a minimum tenure of  six  months and maximum tenure of 40 months. Bank customers will have the facility to book Recurring Deposit through Internet Banking.

Lakshmi Vilas Bank

Lakshmi Vilas Bank offers an interest rate of 7.70 per cent for 12-24 month deposits. Senior citizens are offered an additional 0.25 per cent.

Lakshmi Vilas Bank is a private sector bank. Recurring deposit can be opened singly, jointly or in the name of minors.

RBL Bank

Ratnakar Bank offers an interest rate of 8 per cent for one year and 5 year tenures. The bank offers a high interest rate of 8.25 per cent for tenure 2-3 years.

Senior citizens will get an additional interest rate of 0.50% above the given rates.

Post Office

Post office Recurring Deposit comes with an interest rate of 7.3 per cent which is for a 5 year tenure.

The advantage of post office recurring deposits is that it does not attract TDS on interest earned. Post office recurring deposits can be continued for a further period of 5 years with or without further deposits.

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