Best Recurring Deposit Interest Rates For Senior Citizens

Published: Monday, October 3, 2016, 13:04 [IST]

Recurring Deposit one of the best and safe ways to build a corpus over time. In Recurring Deposit, an individual make payments regularly towards RD for a fixed tenure. Banks offer higher rates of interest for senior citizens. As of now, the interest rates on recurring deposit range from 7.5 per cent to 9.25 per cent per annum.

Interest rates may vary depending on the tenure of the Recurring Deposit. The tenure will be usually from 6 months to 10 years and interest will be compounded quarterly.

Here are best interest rates provided by banks on RD:

Ratnakar Bank

Ratnakar Bank is offering RD interest rate at 8.50 per cent for 2 years. For one year, it provides 8 per cent interest rate which is pretty good when compared to other bank deposit rates.
RD can be booked for a minimum tenure of six months and maximum tenure of 40 months. The bank provides the facility to book Recurring Deposit through Internet Banking.
If a customer has not updated PAN details, TDS will be applicable at 20% on the interest income of Rs10,000 or above during the financial year.

Bandhan Bank

Bandhan Bank is headquartered in Kolkata, West Bengal. The bank received banking licence to start operations by Reserve Bank of India in 2014.
The bank provides over draft facility after 6 months against its RD. Individuals can start the RD with an investment as low as Rs 100. The tenure available will be between 6 months to 10 years.
Bandhan Banks offer interest rate of 8.25 per cent for tenures up to 5 years and senior citizen can avail extra 0.50 per cent of interest rates.

DCB

The interest rates of DCB Bank are applicable at 7.90 per cent on deposits ranging from 24 months to 36 months time period. The one good thing is that given the fact that these are 2-3 years deposits, you are saved from falling interest rates.
A person who has completed 60 years of age at the time of booking term deposit will be treated as a senior citizen and would be eligible for additional interest of 0.50%, which will be 8.40 per cent.

Tamilnad Mercantile Bank Ltd

Tamilnad Mercantile Bank provides an interest rate of 7.90 per cent for the tenure of 5 years and above. Additional 0.50 per cent will be applicable for senior citizens. RDs are a good bet and an excellent approach as it will make you to go for disciplined investment.

Lakshmi Vilas Bank

The interest rate on Lakshmi Vilas bank 18 months to less than 5 years is 7.90 per cent. Senior citizens are entitled to an extra 0.50 per cent, taking their rates to 8.40 per cent. Lakshmi Vilas Bank is a private sector bank.

Post Office Recurring Deposit

Post Office Recurring Deposit comes with an attractive interest rate of 7.3 per cent which is for 5 year tenure. The main advantage of post office recurring deposit is that it does not attract TDS on interest earned.
There is a rebate on advance deposit of at least 6 installments. Post office recurring deposit can be continued for a further period of 5 years with or without further deposits.