Top 5 Private Sector Banks Promising Good Returns On Recurring Deposits

A recurring deposit (RD) is a particular type of term deposit for salaried persons who desire to make regular contributions, similar to a Systematic Investment Plan (SIP) in mutual funds. A predetermined chunk of the money can be contributed towards your RD account every month in order to gain interest rates based on your selected maturity period or tenure and deposit amount. The applicable interest rates on recurring deposits are compounded quarterly as a result your RD investment can boost your yield and the maturity amount can be withdrawn at the end of your specified term. We've compiled a list of the top 5 private sector banks that are presently offering higher returns on recurring deposits, considering which you can earn good interest rates to cover your future financial goals against your regular contributions.

Yes Bank

Yes Bank allows recurring deposits for a tenure ranging from 6 months to 10 years. For a deposit amount of less than Rs 2 Cr, the bank has revised its interest rates on recurring deposits from 5th August 2021. On an RD account, senior citizens are also entitled to get an additional rate of 0.50% and the most recent interest rates on the RD account of Yes Bank are as follows.

Period	Interest Rate (per annum)	Senior Citizen Rates (per annum)
6 Months	5.00%	5.50%
9 Months	5.25%	5.75%
12 Months	5.75%	6.25%
15 Months	5.75%	6.25%
18 Months	6.00%	6.50%
21 Months	6.00%	6.50%
24 Months	6.00%	6.50%
27 Months	6.00%	6.50%
30 Months	6.00%	6.50%
33 Months	6.00%	6.50%
36 Months	6.25%	7.00%
5 years upto 10 Years	6.50%	7.25%
Source: Bank Website, w.e.f 5th August, 2021

RBL Bank

With a minimum deposit amount of Rs 1000 one can open a recurring deposit amount at RBL Bank for a tenure ranging from 6 months and up to 20 years. With effect from 1st September 2021, RBL Bank has revised interest rates on its domestic recurring deposits and NRO/NRE Deposits of less than Rs 3 Cr which are listed below.

Period of Deposit	Interest Rates p.a.	Senior Citizen Interest Rates p.a.
7 days to 14 days	3.25%	3.75%
15 days to 45 days	3.75%	4.25%
46 days to 90 days	4.00%	4.50%
91 days to 180 days	4.50%	5.00%
181 days to 240 days	5.00%	5.50%
241 days to 364 days	5.25%	5.75%
12 months to less than 24 months	6.00%	6.50%
24 months to less than 36 months	6.00%	6.50%
36 months to less than 60 months	6.30%	6.80%
60 months to 60 months 1 day	6.30%	6.80%
60 months 2 days to less than 120 months	5.75%	6.25%
120 months to 240 months	5.75%	6.25%
Source: Bank Website, w.e.f. September 01, 2021

IndusInd Bank

With a minimum deposit amount of Rs 500 and thereafter in multiples of 100, you can open an RD account at IndusInd Bank for a maturity period of 9 months to 61 months and above. With effect from 23rd July 2021, this private sector bank had revised interest rates on recurring deposits which can be found below.

Tenure	Interest Rates p.a. (%)	Senior Citizen Rates p.a.(%)
09 Months	5.5	6
12 Months	6	6.5
15 Months	6	6.5
18 Months	6	6.5
21 Months	6	6.5
24 Months	6	6.5
27 Months	6	6.5
30 Months	6	6.5
33 Months	6	6.5
Above 3 years to below 61 month	6	6.5
61 months and above	5.5	6
Source: Bank Website, w.e.f. July 23rd, 2021

IDFC First Bank

At IDFC First Bank, one can open a recurring deposit account for minimum and maximum monthly deposit amount of Rs 100 and Rs 75,000 respectively. The bank has revised its interest rates on RD with effect from 1st May 2021 which are framed below. Note: Senior citizens will be eligible to get an additional rate of 0.50% over the below rate.

Period (in Months)	RD-Rate of Interest (%p.a.) w.e.f. May 01, 2021
6 months	5.00%
9 months	5.25%
12 months	5.50%
15 months	5.50%
18 months	5.50%
21 months	5.50%
24 months	5.50%
27 months	5.75%
36 months	6.00%
39 months	6.00%
48 months	6.00%
60 months	6.00%
90 months	5.25%
120 months	5.25%
Source: Bank Website

Axis Bank

With an online account opening option, Axis Bank allows minimum monthly installments of Rs. 500 while the maximum can run into multiples thereof with no maximum limit to open an RD account for a tenure ranging from 6 months to 10 years. The bank recently revised its interest rates on domestic term deposits and the new rates are applicable from 23rd September 2021 which can be seen below for a deposit amount of less than Rs 2 Cr. 

Period	Regular Interest Rates (in % p.a.)	Senior citizens interest rates ( in % p.a.)
7 days to 14 days	2.5	2.5
15 days to 29 days	2.5	2.5
30 days to 45 days	3	3
46 days to 60 days	3	3
61 days < 3 months	3	3
3 months < 4 months	3.5	3.5
4 months < 5 months	3.5	3.5
5 months < 6 months	3.5	3.5
6 months < 7 months	4.4	4.65
7 months < 8 months	4.4	4.65
8 months < 9 months	4.4	4.65
9 months < 10 months	4.4	4.65
10 months < 11 months	4.4	4.65
11 months < 11 months 25 days	4.4	4.65
11 months 25 days < 1 year	4.4	4.65
1 year < 1 year 5 days	5.1	5.75
1 year 5 days < 1 year 11days	5.15	5.8
1 year 11days < 1 year 25days	5.1	5.75
1 year 25 days < 13 months	5.1	5.75
13 months < 14 months	5.1	5.75
14 months < 15 months	5.1	5.75
15 months < 16 months	5.1	5.75
16 months < 17 months	5.1	5.75
17 months < 18 months	5.1	5.75
18 months < 2 years	5.25	5.9
2 years < 30 months	5.4	6.05
30 months < 3 years	5.4	6.05
3 years < 5 years	5.4	6.05
5 years to 10 years	5.75	6.5
Source: Bank Website, W.E.F. 23/09/2021