SBI vs HDFC: Interest Rates On Recurring Deposits Compared

When it comes to depositing tenure flexibility, recurring deposits are an excellent choice for both the short and long term, especially for salaried individuals wishing to deposit in a secure instrument on a monthly basis in order to build handsome returns. A recurring deposit scheme requires the investor to deposit a fixed amount every month for a predetermined period of time, which typically ranges from one to five years. As a result, risk-averse investors who want to deposit a fixed amount every month rather than a lump sum favor recurring deposits to meet their personal finance goals. Because recurring deposits are one of the safest, low-risk investment vehicles with a guaranteed return benefit, you should look at the latest interest rates on recurring deposits from State Bank of India (SBI) and HDFC Bank, which were recently amended in February 2022.

SBI Recurring Deposit Interest Rates

SBI allows recurring deposits for a minimum term of 12 months and a maximum term of 120 months. The minimum monthly installment amount will be Rs 100 with no upper limit, and the interest rate will be the same as for term deposits for the general public and senior citizens. SBI has increased its fixed deposit interest rates recently and now the bank is giving the interest rate indicated below on both fixed and recurring deposits as of 15.02.2022.

Tenors	Existing Rates for Public w.e.f. 15.01.2022	Revised Rates For Public w.e.f. 15.02.2022	Existing Rates for Senior Citizens w.e.f. 15.01.2022	Revised Rates for Senior Citizens w.e.f. 15.02.2022
7 days to 45 days	2.9	2.9	3.4	3.4
46 days to 179 days	3.9	3.9	4.4	4.4
180 days to 210 days	4.4	4.4	4.9	4.9
211 days to less than 1 year	4.4	4.4	4.9	4.9
1 year to less than 2 year	5.1	5.1	5.6	5.6
2 years to less than 3 years	5.1	5.2	5.6	5.7
3 years to less than 5 years	5.3	5.45	5.8	5.95
5 years and up to 10 years	5.4	5.5	6.2	6.3
Source: Bank Website

HDFC Bank Recurring Deposit Interest Rates

Recurring deposits at HDFC Bank can be established with a minimum monthly deposit of Rs. 1000 and in multiples of Rs. 100 thereafter or up to Rs 2 Cr per month for a maturity tenure of 6 months to 10 years. If interest payable or reinvested on RD and FD per customer across all bank branches exceeds Rs.40,000 for the general public and Rs.50,000 for senior citizens in a financial year, TDS would be levied by the bank. Recurring deposits will pay the same interest rate as a regular fixed deposit. On February 14, 2022, the bank updated its recurring deposit interest rates on certain tenors, and the new rates are as follows.

Period	Interest Rate (per annum)	Senior Citizen Rates (per annum)	Interest Rates p.a. for NRIs	Effective From
6 Months	3.50%	4.00%	N.A.	Aug 25, 2020
9 Months	4.40%	4.90%	N.A.	Aug 25, 2020
12 Months	5.00%	5.50%	5.50%	Feb 14, 2022
15 Months	5.00%	5.50%	5.00%	Dec 01, 2021
24 Months	5.00%	5.50%	5.00%	Dec 01, 2021
27 Months	5.20%	5.70%	5.20%	Jan 12, 2022
36 Months	5.20%	5.70%	5.20%	Jan 12, 2022
39 Months	5.45%	5.95%	5.45%	Feb 14, 2022
48 Months	5.45%	5.95%	5.45%	Feb 14, 2022
60 Months	5.45%	5.95%	5.45%	Feb 14, 2022
90 Months	5.60%	6.35%	5.60%	Jan 12, 2022
120 Months	5.60%	6.35%	5.60%	Jan 12, 2022
Source: Bank Website