11 Best Recurring Deposits With 7 To 8% Returns For Senior Citizens In 2022

Published: Saturday, March 5, 2022, 16:32 [IST]

Investing in recurring deposits (RDs) for both salaried and non-salaried individuals having a risk-averse profile is the most preferred alternative when it comes to SIP-like secure debt instruments that not only give higher and consistent interest rates but also ensure deposit safety. Recurring deposits allow depositors to contribute monthly installments in order to earn attractive returns by saving on a regular basis; this approach minimizes the need to make lump sum deposits, as is the case with fixed deposits.

Deposits made under recurring deposits are also insured by the DICGC up to Rs. 5 lakhs, which is a wonderful cheer for debt investors. The first installment of a recurring deposit can be as low as Rs 100, and the maturity period can range from 6 months to 10 years. As a consequence, with all of these additional perks, RD is a must-have in your portfolio when interest rates are on the rise. The interest rate on RDs varies from bank to bank, and the interest rate on RDs for elderly people is somewhat higher than regular deposits.

The interest on Recurring Deposits is compounded quarterly, and most banks offer an additional rate of 0.25 percent to 0.75 percent for older persons. As a result, for those looking for better returns on recurring deposits, we've compiled a list of 11 banks that are currently giving senior citizens interest rates of more than 7%. It's worth noting that the banks we selected as the top are ranked only on the basis of interest rates, not market capitalization.

Note: Interest rates starting from 7% and above on recurring deposits are marked in bold.

Bandhan Bank

Bandhan Bank is giving an interest rate of 4.50 percent to 5.60 percent to the general public and 5.25 percent to 6.35 percent to senior citizens as of January 12, 2022. Bandhan Bank offers recurring deposits with terms ranging from six months to ten years. The bank is also providing elderly people a 7% interest rate on deposits maturing in two years to less than five years.

Tenure	Regular rate in % p.a.	Senior citizens
6 months to less than 1 year	4.50%	5.25%
1 year to 18 months	5.25%	6.00%
Above 18 months to less than 2 years	5.25%	6.00%
2 years to less than 3 years	6.25%	7.00%
3 years to less than 5 years	6.25%	7.00%
5 years to up to 10 years	5.60%	6.35%
Source: Bank Website

IndusInd Bank

IndusInd Bank is giving an interest rate of 5.50 percent to 6.00 percent to the general public and 6.00 percent to 6.50 percent to senior citizens as of February 16th, 2022. The bank accepts recurring deposits with maturities ranging from nine months to sixty-one months and even beyond. The bank is providing older people a 7% interest rate on deposits maturing in 24 months to 61 months.

Tenure	Regular rate in % p.a.	Senior citizens
09 Months	5.5	6
12 Months	6	6.5
15 Months	6	6.5
18 Months	6	6.5
21 Months	6	6.5
24 Months	6.5	7
27 Months	6.5	7
30 Months	6.5	7
33 Months	6.5	7
3 years to below 61 month	6.5	7
61 months and above	6	6.5
Source: Bank Website

RBL Bank

RBL Bank is giving a 3.25 percent to 5.75 percent interest rate on recurring deposits to the general public and 3.75 percent to 6.25 percent to senior citizens as of February 3, 2022. The bank accepts recurring deposits with maturities ranging from 7 days to 240 months, and elderly people can earn a 7% interest rate on deposits maturing in 24 months to less than 36 months.

Tenure	Regular rate in % p.a.	Senior citizens
7 days to 14 days	3.25%	3.75%
15 days to 45 days	3.75%	4.25%
46 days to 90 days	4.00%	4.50%
91 days to 180 days	4.50%	5.00%
181 days to 240 days	5.00%	5.50%
241 days to 364 days	5.25%	5.75%
12 months to less than 24 months	6.25%	6.75%
24 months to less than 36 months	6.50%	7.00%
36 months to less than 60 months	6.30%	6.80%
60 months to 60 months 1 day	6.30%	6.80%
60 months 2 days to less than 120 months	5.75%	6.25%
120 months to 240 months	5.75%	6.25%
Source: Bank Website

Yes Bank

Yes Bank is offering an interest rate of 4.75 percent to 6.25 percent to regular customers and 5.25 percent to 7.00 percent to senior citizens as of January 4, 2022. The bank accepts RDs with maturities ranging from 6 to 120 months, and senior citizens can earn a 7% interest rate on deposits maturing in 36 to 120 months.

Tenure	Regular rate in % p.a.	Senior citizens
6 Months	4.75%	5.25%
9 Months	5.00%	5.50%
12 Months	5.75%	6.25%
15 Months	5.75%	6.25%
18 Months	6.00%	6.50%
21 Months	6.00%	6.50%
24 Months	6.00%	6.50%
27 Months	6.00%	6.50%
30 Months	6.00%	6.50%
33 Months	6.00%	6.50%
36 Months	6.25%	7.00%
60 Months upto 120 Months	6.25%	7.00%
Source: Bank Website

Ujjivan Small Finance Bank

The bank is giving an interest rate of 4.75 percent to 6.00 percent on resident recurring deposits to the general public and 5.5 percent to 6.50 percent to senior persons. Ujjivan SFB accepts recurring deposits with maturities ranging from 6 months to 120 months, and elderly persons can earn more than 7% on deposits maturing in 21 months to 36 months. These rates are effective as of 31st December 2021.

Tenure	Regular rate in % p.a.	Senior citizens
6 months to 9 months	4.75%	5.50%
12 months	6.50%	7.25%
15 months to 18 months	6.00%	6.75%
21 months to 24 months	6.60%	7.35%
27 months to 36 months	6.50%	7.25%
39 months to 60 months	6.25%	7.00%
63 months to 120 months	6.00%	6.75%
Source: Bank Website

Jana Small Finance Bank

On recurring deposits, the bank is paying an interest rate of 4.00 percent to 6% to the general public and 4.80 percent to 6.80 percent to senior people beginning January 11, 2022. The bank provides senior citizens a 7.55 percent interest on RDs maturing in 12 to 60 months.

Tenure	Regular rate in % p.a.	Senior citizens
> 1 Month - 6 Months	4.00%	4.80%
> 6 Months - 12 Months	5.50%	6.30%
12 Month	6.75%	7.55%
> 12 Months - 36 Months	6.75%	7.55%
36 Months - 60 Months	6.75%	7.55%
> 60 Months - 120 Months	6.00%	6.80%
Source: Bank Website

Equitas Small Finance Bank

The bank is giving the following interest rates on recurring deposits as of February 7, 2022. The bank is providing older people a 7% interest rate on deposits maturing in 30 months to 36 months.

Tenure	Regular rate in % p.a.	Senior citizens
12 months	6.00 %	6.50 %
15 Months	6.00 %	6.50 %
18 Months	6.00 %	6.50 %
21 Months	6.25 %	6.75 %
24 Months	6.25 %	6.75 %
30 Months	6.35 %	7.00 %
36 Months	6.35 %	7.00 %
48 Months	6.00 %	6.50 %
60 Months	6.00 %	6.50 %
90 Months	6.00 %	6.50 %
120 Months	6.00 %	6.50%
Source: Bank Website

AU Small Finance Bank

On RDs maturing in 3 months to 120 months, the bank is giving an interest rate of 4.25 percent to 6.75 percent to the general public and 4.75 percent to 7.25 percent to senior citizens as of February 23, 2022. The bank is giving senior citizens 7.55 percent interest rates on recurring deposits maturing in 25 to 36 months and 60 to 120 months.

Tenure	Regular rate in % p.a.	Senior citizens
3 Months	4.25%	4.75%
4 Months to 6 Months	4.75%	5.25%
7 Months to 12 Months	5.25%	5.75%
13 months to 15 months	6.50%	7.00%
16 Months to 18 months	6.35%	6.85%
19 Months to 24 Months	6.35%	6.85%
25 Months to 36 Months	6.75%	7.25%
37 Months to 45 Months	6.35%	6.85%
46 Months to 59 Months	6.35%	6.85%
60 Months to 120 Months	6.75%	7.25%
Source: Bank Website

North East Small Finance Bank

The bank is giving the following interest rates on recurring deposits as of January 27, 2022. This is the only bank in the industry that pays senior citizens 8% interest on recurring deposits with a two-year maturity.

Tenure	Regular rate in % p.a.	Senior citizens
3 Months	4.25	4.75
6 Months	4.5	5
9 Months	5.5	6
1 Year	5.5	6
2 Year	7.5	8
3 Year	7	7.5
4 Year	7	7.5
5 Years	6.5	7
More than 5 years upto 10 years	6.5	7
Source: Bank Website

Suryoday Small Finance Bank

The bank is giving the interest rates stated below on recurring deposits as of September 9, 2021. The bank offers senior citizens a maximum interest rate of 7.30 percent on deposits maturing in 36 months.

Tenure	Regular rate in % p.a.	Senior citizens
6 months	4.75%	4.75%
9 months	5.25%	5.25%
12 months	6.50%	6.75%
15 months	6.50%	6.75%
18 months	6.50%	6.75%
21 months	6.50%	6.75%
24 months	6.50%	6.75%
27 months	6.25%	6.50%
30 months	6.25%	6.50%
33 months	6.25%	6.50%
36 months	7.00%	7.30%
Above 3 Years to less than 5 Years	6.50%	6.50%
5 Years	6.75%	7.00%
Above 5 Years to 10 Years	6.00%	6.00%
Source: Bank Website

Ujjivan Small Finance Bank

On recurring deposits maturing in 6 months to 10 years, the bank is giving an interest rate of 6.50 percent to 6.75 percent to the general public and 7.00 percent to 7.25 percent to senior people beginning January 20, 2022. The bank is providing senior citizens a return of more than 7% on RDs with maturities ranging from 12 months to 10 years.

Tenure	Regular rate in % p.a.	Senior citizens
Upto 6 months	6.50%	7.00%
9 months	6.50%	7.00%
12 months	6.75%	7.25%
15 months	6.75%	7.25%
18 months	6.75%	7.25%
21 months	6.75%	7.25%
Above 21 Months to less than 24 Months	6.75%	7.25%
24 months to 36 months	7.00%	7.50%
Above 3 Years upto 5 Years	6.75%	7.25%
Above 5 years upto 10 years	6.75%	7.25%
Source: Bank Website