Top 4 Banks Promising Up To 8.00% Returns On Recurring Deposits

Investing in recurring deposits (RD) works similarly to mutual fund-like investments, such as the Systematic Investment Plan, where you are required to make a fixed contribution on a monthly basis. You can invest in optimal recurring deposits based on your particular financial goals for a maturity period ranging from 12 months to 10 years. When it comes to the best recurring deposits, it's advisable to go for the market's highest interest rates. As a result, we've selected the top 5 small finance banks based on interest rates only that are presently giving returns up to 8.00 percent on recurring deposits, focusing on your low-risk appetite, DICGC deposit safety up to Rs 5 lakhs, strong interest rates, and short to long-term goals.

Note: The highest interest rates are marked in bold.

North East Small Finance Bank

Among the small finance banks, North East Small Finance Bank is the first in our list based on our own research and analysis that is promising up to 7.50% returns to regular citizens, and 8.00% returns to senior citizens on recurring deposits. With effect from 19th April 2021, the bank is now promising the following interest rates on recurring deposits.

Tenure	Card Rates upto 2 cr (in % p.a.)	Senior Citizen (in % p.a.)
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

Utkarsh Small Finance Bank

One can open a recurring deposit account at Utkarsh Small Finance Bank with an amount in multiples of Rs. 100 only and for tenure in multiples of 3 months. With effect from 01 July 2021, Utkarsh Small Finance Bank is offering the highest interest rates of 7.00% to the general public and 7.50% to senior citizens on recurring deposits per annum.

Tenure	General Customers	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, W.E.F. July
01, 2021

Suryoday Small Finance Banks

For a minimum installment amount for an RD of Rs 100 (and multiples of Rs 100 thereof), Suryoday Small Finance Bank is promising the following interest rates on recurring deposits of less than Rs 2 Cr.

Period	Interest Rate (Per Annum)	Senior Citizen Rate (Per Annum)
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, ( Effective: From September 09, 2021 )

Jana Small Finance Bank

At Jana Small Finance Bank, one can open an RD account with a minimum installment of Rs 100 in multiples of Rs 100. With effect from 10th June 2021, Jana Small Finance Bank is offering the below-listed interest rates on recurring deposits.

Period	Regular RD Interest Rate (p.a.)	Senior Citizen RD Interest Rate (p.a.)
> 1 Month - 6 Months	4.00%	4.50%
> 6 Months - 12 Months	5.50%	6.00%
> 12 Months - 36 Months	6.50%	7.00%
> 36 Months - 60 Months	6.75%	7.25%
> 60 Months - 120 Months	6.00%	6.50%
Source: Bank Website, Effective Date - 10th June'21