Sachin Gupta
by
5paisa Research Team
4th Dec 2024
Recurring Deposit (RD) Interest Rates in India
5paisa Research Team
Last Updated: 24th October 2024 - 03:59 pm
What is Recurring Deposit?
Recurring deposits are among the most popular risk-free investing options in India. For those with steady earnings, an RD is an investment vehicle in which a certain sum of money is added to the account each month for a predetermined period of time. By creating an RD account, one can receive an interest rate that ranges from around 2.50% to 8.50%. Interest rates on RDs are comparable to those on fixed deposits, but what sets RDs apart is the monthly payment flexibility. A fixed deposit might have a minimum term of six months or ten years.
iJoin the Club of Lakhs of Tech-Savvy Investors!
RD Interest Rate 2024
| Bank | RD Interest Rates (General Public) | RD Interest Rates (Senior Citizen) |
| SBI RD Interest Rates | 6.00% to 7.00% | 6.50% to 7.50% |
| ICICI RD Interest Rates | 4.75% to 7.20% | 5.25% to 7.75% |
| HDFC RD Interest Rates | 7.00% to 7.25% | 7.50% to 7.75% |
| Kotak Mahindra Bank RD Interest Rates | 6.00% to 7.40% | 6.50% to 7.90% |
| Axis Bank RD Interest Rates | 5.75% to 7.20% | 6.25% to 7.85% |
| Bank of Baroda RD Interest Rates | 5.75% to 7.25% | 6.25% to 7.75% |
| Punjab National Bank RD Interest Rates | 6.05% to 7.30% | 6.55% to 7.80% |
| IDBI Bank RD Interest Rates | 6.25% to 7.00% | 6.75% to 7.50% |
| Canara Bank RD Interest Rates | 6.15% to 7.25% | 6.65% to 7.75% |
| Indian Bank RD Interest Rates | 4.75% to 7.25% | 5.00% to 7.75% |
| Indian Overseas Bank RD Interest Rates | 5.75% to 7.30% | 6.25% to 7.80% |
| Union Bank of India RD Interest Rates | 4.90% to 7.25% | 5.40% to 7.75% |
| Yes Bank RD Interest Rates | 7.25% to 8.00% | 7.75% to 8.50% |
| Bandhan Bank RD Interest Rates | 4.50% to 7.85% | 5.25% to 8.35% |
| Bank of India RD Interest Rates | 5.50% to 7.30% | 6.00% to 7.80% |
| City Union Bank RD Interest Rates | 6.25% to 7.25% | 6.50% to 7.75% |
| DBS Bank RD Interest Rates | 6.00% to 7.50% | 6.50% to 8.00% |
| Dhanalakshmi Bank RD Interest Rates | 6.50% to 7.25% | 7.00% to 7.75% |
| Federal Bank RD Interest Rates | 5.75% to 7.40% | 6.25% to 7.90% |
| IndusInd Bank RD Interest Rates | 5.85% to 7.99% | 7.25% to 8.25% |
| Karnataka Bank RD Interest Rates | 6.00% to 7.40% | 6.60% to 7.80% |
| Karur Vysya Bank RD Interest Rates | 6.25% to 7.50% | 6.25% to 8.00% |
| Saraswat Bank RD Interest Rates | 5.75% to 7.25% | 6.25% to 7.75% |
| South Indian Bank RD Interest Rates | 5.00% to 7.25% | 5.50% to 7.75% |
| TMB RD Interest Rates | 6.00% to 7.50% | 6.00% to 8.00% |
As of October 2024
Overview of Top RD Rates
| Particulars | Details |
| Rate of Interest | 4.75% to 8.50% |
| Minimum Amount of Deposit | Rs 10 (Post Office RD) |
| Investment Tenure | 6 Months to 10 Years |
| Compounding Interest Frequency | 3 Months |
| Withdrawal Prior to Maturity | Not Allowed |
| Premature Closing of RD | Allowed with Penalty |
Benefits of Recurring Deposit (RD)
- Safe Investment: There is extremely little to no risk associated with recurring deposits. To make sure your money is protected, choose a bank that is reliable and secure.
- Flexible Investment: You can choose the monthly investment amount that best fits your budget.
- Compound Interest: RDs yield compound interest, which helps increase your profits.
- Financial Discipline: Since RDs require regular contributions, they encourage you to save regularly.
- Loan Facility: Many banks allow you to take loans against your RD account.
Disadvantages of Recurring Deposit (RD)
- Limited Liquidity: Money is locked in for the entire term, which might be a disadvantage in emergencies.
- Lower Returns Compared to Market: RD rates are often lower than other investment avenues like stocks or mutual funds.
- Penalties for Early Withdrawal: Premature withdrawal may incur penalties, reducing the overall interest earned.
Taxation on Recurring Deposits
The interest earned from recurring deposits is subject to taxation. It is added to the total taxable income and taxed as per the applicable income tax slab. No tax is deducted at source (TDS) on the interest earned if the total interest income is below Rs 40,000 (Rs 50,000 for senior citizens). For individuals whose total interest income exceeds these limits, TDS is deducted at the rate of 10% if the PAN is provided; otherwise, it is deducted at 40%.
Types of Recurring Deposits
- Regular RD: This is the most common type, where a fixed amount is deposited regularly.
- Monthly Income Scheme (MIS): Some banks offer RDs that provide monthly interest payouts, ideal for those looking for regular income.
- Special RDs: Some banks offer themed RDs with special interest rates during festivals or occasions.
- Online RD: Online banking allows for the opening and management of RDs without visiting a bank branch.
Conclusion
An RD calculator is a useful tool that helps individuals estimate the maturity amount of their recurring deposit account by inputting details such as deposit amount, interest rate, and tenure. A recurring deposit account allows you to invest a fixed amount monthly, earning interest at a predetermined rate, making it a secure and disciplined way to save.
FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
- Flat ₹20 Brokerage
- Next-gen Trading
- Advance Charting
- Actionable Ideas
Trending on 5paisa
Personal Finance Related Articles
High Yield Savings Account: A Smart Way to Maximize Your Savings
by
5paisa Research Team
4th Dec 2024
How to Save Tax on ₹20 Lakh Annual Income in India
by
5paisa Research Team
4th Dec 2024
How to Save Tax on an Annual Income of ₹18 Lakh in India
by
5paisa Research Team
4th Dec 2024
Effective Ways to Save Tax on a 15 Lakh Income
by
5paisa Research Team
13th Nov 2024
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.