HDFC Bank Vs ICICI Bank RD Rates Compared After The Recent Hike, Check New Rates Here

HDFC Bank Vs ICICI Bank RD Rates Comparison After The Recent Hike, Check New Rates Here
A recurring deposit (RD) is a type of fixed deposit or term deposit (FD). The only difference is that with an RD, an individual can continue to deposit money every month, whereas, with an FD, he or she must deposit a lump sum. So, in essence, it is a systematic investment plan (SIP) with a guaranteed fixed return. Putting it in simple words, a recurring deposit (RD) is a type of investment that allows you to save money on a regular basis while earning interest. The main benefit of an RD is that you can save by making small regular contributions and earning interest on your savings.

HDFC Bank Recurring Deposits Rate Hike

HDFC Bank, India's largest private sector lender, recently hiked its recurring deposit interest rates on certain tenure. As a result of this change, recurring deposits at HDFC Bank with terms ranging from 27 to 120 months are now getting high changed interest rates. It is important to note that the increase in RD interest rate by the Bank has come at a time when banks are raising interest rates on everything, including loans and fixed deposits after the RBI hiked the repo rate.

The senior citizens will continue to enjoy the additional 0.50% rated over the regular rates. The increased RD interest rate by the HDFC Bank is effective from May 17, 2022, and applicable on deposits by Resident / NRO /NRE Customers, according to the bank's website. One should note, that the bank didn't make any changes to the deposit tenure from 6 Months to 12 Months.

Recurring Deposit Rates on deposits by Resident/NRO/NRE Customers

Maturity Period	Interest Rate (per annum)	Senior Citizen Rates (per annum)	Effective From
6 Months	3.50%	4.00%	Aug 25, 2020
9 Months	4.40%	4.90%	Aug 25, 2020
12 Months	5.10%	5.60%	Apr 6th, 2022
15 Months	5.10%	5.60%	Apr 6th, 2022
24 Months	5.10%	5.60%	Apr 6th, 2022
27 Months	5.40%	5.90%	May 17, 2022
36 Months	5.40%	5.90%	May 17, 2022
39 Months	5.60%	6.10%	May 17, 2022
48 Months	-5.60%	6.10%	May 17, 2022
60 Months	5.60%	6.10%	May 17, 2022
90 Months	5.75%	6.50%*	May 17, 2022
120 Months	5.75%	6.50%*	May 17, 2022

Please Note - NRE Recurring Deposit can be booked for a minimum tenure of 12 months.

Source -hdfcbank.com

ICICI Bank Recurring Deposits Rate Hikes

ICICI Bank, one of the largest private sector banks recently also made a change in its RD rates. Continuing the rate hike, the bank changed its RD rates. According to the bank's website, the new rates came into effect on 21st May 2022. The bank offers RD plans to customers who prefer to save regularly every month and earn additional, above the regular savings interest rates. With this hike, the customers can now enjoy extra rates on their RD. The bank offers RD for a minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years.

Recurring Deposit Rates w.e.f 21st May 2022

Maturity Period	Interest Rate (per annum)	Senior Citizen Rates (per annum)
6 months	3.50%	4.00%
9 months	4.40%	4.90%
12 months	5.10%	5.60%
15 months	5.10%	5.60%
18 months	5.10%	5.60%
21 months	5.10%	5.60%
24 months	5.10%	5.60%
27 months	5.40%	5.90%
30 months	5.40%	5.90%
33 months	5.40%	5.90%
36 months	5.40%	5.90%
Above 3 years upto 5 years	5.60%	6.10%
Above 5 years upto 10 years	5.75%	6.50%

Note -Above 5 years up to 10 Years margin for SRC has been changed to 0.60%.

Please Note - Penalty is charged at monthly interest at the rate of Rs 12 per Rs 1000 for all delayed instalments.

Source - icicibank.com