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    Banks Offering Up To 9% Interest On RDs


    RDs are the most conventional form of investment that involves deposit of some fixed amount on a regular basis for some pre-determined time period. Usually the time period for such deposits stretch for long term say 5 to 10 years. The investment instrument is suitable for investors who have a steady flow of income and can service their liability towards the investment to earn a fixed rate of return.

    Banks Offering Up To 9% Interest On RDs

    So while the traditional public and private sector banks are not lucrative when it comes to return on RD instrument, you can earn a comparatively higher return by making your deposits in Small Finance Banks which have lately gaining traction through their best offers.

    Here are suggested three such Small Finance Banks that offer a return as high a 9% on RDs

    Suryoday Small Finance Bank

    For a three year tenure, the RD with this small finance bank founded in the year 2008 can yield you as high as 8.75% return. And senior citizens have the benefit to earn a higher return by 0.5% points. The highest rate is offered on 27-months, 30-months, 33-months and 36-months RD.

    Tenure Interest rate for amount less than Rs. 1 crore
    6 months 7.5%
    9 months 7.75%
    12 months 8.5%
    15 months 8.5%
    18 months 8.5%
    21 months 8.5%
    24 months 8.5%
    27 months 8.75%
    30 months 8.75%
    33 months 8.75%
    36 months 8.75%
    Above 3 years to 5 years 7.75%
    Above 5 years to 10 years 7.25%

    In comparison, leading state-run lender offers merely 6.7 per cent interest on a three-year RD deposit.

    Equitas Small Finance Bank: This bank has revised rates on RD with effect from July 5, 2018 and offer maximum 8% interest rate. Senior citizens are eligible for additional interest rate of 0.5%.

    Tenure Interest rate for amount less than Rs. 1 crore
    12 months 8%
    15 months 8%
    18 months 8%
    21 months 7.75%
    24 months 7.75%
    30 months 7.75%
    36 months 7.75%
    48 months 7%
    60 months 7%
    90 months 7%
    120 months 7%]

    This small finance bank offers up to 8 per cent interest on recurring deposits. The highest rate is applicable on 12-month, 15-month and 18-month tenures. For senior citizens, this bank offers 0.5 per cent additional interest on all tenures of RD.


    AU Small Finance Bank offers interest rate in the range of 6.75-8 per cent on various tenures of RDs. The lowest rate of 6.75 per cent is offered on a 3-month RD while the highest rate of 8 per cent is given on 46-60 month RDs. Senior citizens will get 50 basis points more on all tenures of RDs.Taxation on recurring deposits

    Taxation on Recurring deposits: These are not tax efficient. Interest income from recurring deposit is added to total income for the purpose of declaring tax liability.

    Also, there is now a TDS that will be applicable on recurring deposits if the interest income exceeds Rs 10,000.

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