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Top 5 Banks Promising Returns Up To 8.5% On Recurring Deposits
A prominent investment strategy recurring deposit (RD) is a special kind of scheme where an investor contributes in monthly or regular installments on a recurring deposit account and earns the maturity amount upon maturity. Due to its low-risk investment strategy with modest and predictable returns, recurring deposits are best for those who have a low-risk appetite. Customers have the option of choosing their investment amount and term. This investment product, which is available in a variety of duration choices ranging from 6 months to 10 years is marketed by a number of banks and NBFCs, facilitates a route for monthly savings for long or short-term goals. There are still some banks that can guarantee you an interest rate of up to 8.5 per cent on recurring deposits, even in the present rate cut climate where leading banks like SBI is guaranteeing an interest rate of 5.00 per cent to 5.40 per cent on recurring deposits and a 5-year post office recurring deposit would only provide you with an interest rate of 5.8 per cent.
Utkarsh Small Finance Bank RD
For terms ranging from 6 months to 10 years Utkarsh Small Finance Bank is currently promising an interest rate of 6.50% - 7.25% to the general public and 7.00% - 7.75% to senior citizens. On recurring deposits for 24 Months to 36 months, the bank provides the highest interest rates. On these deposits, a regular citizen will get an interest rate of 8.00% and a senior citizen will get an interest rate of 8.50% respectively. These rates are in force from 1 September 2020.
| Tenure | Regular RD Rates | Senior Citizen RD Rates |
|---|---|---|
| Up to 6 months | 6.50% | 7.00% |
| 9 months | 6.50% | 7.00% |
| 12 months | 7.25% | 7.75% |
| 15 months | 7.25% | 7.75% |
| 18 months | 7.25% | 7.75% |
| 21 months | 7.25% | 7.75% |
| Above 21 Months to less than 24 Months | 7.25% | 7.75% |
| 24 Months to 36 months | 8.00% | 8.50% |
| Above 3 Years up to 5 Years | 7.25% | 7.75% |
| Above 5 years up to 10 years | 7.25% | 7.75% |
| Source: Bank Website |
Jana Small Finance Bank Recurring Deposit
Jana Small Finance Bank provides an interest rate of 4.00% to 6.50% on recurring deposits to the general public and 4.50% to 7.00% to senior citizens for terms ranging from 6 months to 120 months. The highest interest rate of 7.25 per cent, is offered by Jana Small Finance Bank on an RD of less than 36 months to 60 months to the general public and 7.75 per cent to senior citizens. These rates are in force from 11 April 2021.
| Tenure | Regular RD Rates | Senior Citizen RD Rates |
|---|---|---|
| > 1 Month - 6 Months | 4.00% | 4.50% |
| > 6 Months - 12 Months | 6.00% | 6.50% |
| > 12 Months - 36 Months | 7.00% | 7.50% |
| > 36 Months - 60 Months | 7.25% | 7.75% |
| > 60 Months - 120 Months | 6.50% | 7.00% |
| Source: Bank Website |
Suryoday Small Finance Bank Recurring Deposit
The general public can receive 5.50 per cent to 6.50 per cent on recurrent deposits at Suryoday Small Finance Bank, whereas senior citizens can earn 6.00 per cent to 7.00 per cent for terms ranging from 6 months to more than 5 years up to 10 years. Suryoday Small Finance Bank offers the highest interest rate on RDs for a five-year term. On recurring deposits, a regular citizen will receive the highest interest rate of 7.25 per cent on 5-year deposits, and a senior citizen will receive the highest interest rate of 7.75 per cent. With effect from 15.02.2021, these rates are applicable.
| Tenure | Regular RD Rates | Senior Citizen RD Rates |
|---|---|---|
| 6 months | 5.50% | 6.00% |
| 9 months | 6.00% | 6.50% |
| 12 months | 6.75% | 7.25% |
| 15 months | 6.75% | 7.25% |
| 18 months | 6.75% | 7.25% |
| 21 months | 6.75% | 7.25% |
| 24 months | 6.75% | 7.25% |
| 27 months | 7.00% | 7.50% |
| 30 months | 7.00% | 7.50% |
| 33 months | 7.00% | 7.50% |
| 36 months | 7.00% | 7.50% |
| Above 3 Years to less than 5 Years | 7.10% | 7.60% |
| 5 Years | 7.25% | 7.75% |
| Above 5 Years to 10 Years | 6.50% | 7.00% |
| Source: Bank Website |
North East Small Finance Bank Recurring Deposit
North East Small Finance Bank pays 4.25 per cent to 6.50 per cent interest on recurring deposits to the general public and 4.75 per cent to 7.00 per cent interest to senior citizens for terms ranging from three months to more than five years up to ten years. The highest rate on RD is offered by North East Small Finance Bank for a two-year term. On recurring deposits, a regular citizen will receive the highest interest rate of 7.50 per cent on 2-year deposits, and a senior citizen would receive the maximum interest rate of 8.00 per cent respectively. These rates are in force from 1 September 2020.
| Tenure | Regular RD Rates In % | Senior Citizen RD Rates In % |
|---|---|---|
| 3 Months | 4.25 | 4.75 |
| 6 Months | 4.50 | 5.00 |
| 9 Months | 5.50 | 6.00 |
| 1 Year | 5.50 | 6.00 |
| 2 Year | 7.50 | 8.00 |
| 3 Year | 7.00 | 7.50 |
| 4 Year | 7.00 | 7.50 |
| 5 Years | 6.50 | 7.00 |
| More than 5 years up to 10 years | 6.50 | 7.00 |
| Source: Bank Website |
Ujjivan Small Finance Bank Recurring Deposit
Ujjivan Small Finance Bank is now offering an interest rate of 5.20 per cent to 5.80 per cent to the general public and 5.70 per cent to 6.30 per cent to senior citizens for terms ranging from 6 months to 120 months. The bank offers the highest interest rates on recurring deposits of 27 to 60 months. A regular citizen will receive a 6.75 per cent interest rate on these deposits, while a senior citizen would receive a 7.25 per cent interest rate. These rates are in force from 5th March 2021.
| Tenure | Regular RD Rates In % | Senior Citizen RD Rates In % |
|---|---|---|
| 6 months to 9 months | 5.20% | 5.70% |
| 12months to 24 months | 6.50% | 7.00% |
| 27 months to 36 months | 6.75% | 7.25% |
| 39 months to 60 months | 6.75% | 7.25% |
| 63 months to 120 months | 5.80% | 6.30% |
| Source: Bank Website |
Conclusion
RD is a risk-free investment option because the principal amount invested, as well as generated interest at the applicable rate, is assured. Though the returns are fixed they can be used for both short-term and long-term goals. RD interest is determined at a fixed rate for the duration of the deposit. Thus, if your bank provides an interest rate of 8.50 per cent on your RD, interest will be calculated at that rate regardless of market fluctuations. The interest income from a Recurring Deposit is taxable, and the bank would deduct TDS at a rate of 10% if the income exceeds Rs. 10,000. And it is important to note here is that just like fixed deposits and savings accounts, recurring deposits are also insured by DICGC up to Rs 5 lakhs. As a result, because it is a monthly investment option rather than a lump sum, it is ideal for investors such as salaried individuals who want to build a corpus by their monthly contributions.
