Dhanteras and Diwali are perfect occasions to start a regular investment scheme, even if you don’t have a substantial sum of money to invest upfront.
Recurring Deposit (RD) offers a practical solution for those looking to invest a fixed amount each month from their salary or savings.
With pre-fixed interest available on monthly investments, RD functions similarly to a Systematic Investment Plan (SIP).
According to data from Bankbazaar.com, here are some leading banks in India offering competitive interest rates on recurring deposits.
DCB Bank is providing an attractive interest rate of 7.6 percent on 5-year RDs. This rate applies to RDs with deposits of less than Rs 2 crore.
Suryoday Small Finance Bank
Suryoday Small Finance Bank offers customers an enticing interest rate of 7.25 percent on RDs with tenures ranging from 5 to 10 years. Senior citizens enjoy an even higher rate of 7.5 percent.
Ujjivan Small Finance Bank
For RDs with tenures of 36 to 60 months, investors can benefit from a substantial interest rate of 7.2 percent.
Additionally, the bank provides a 6.5 percent interest rate on Fixed Deposits (FDs) maturing in 63 to 120 months.
Deutsche Bank extends an interest rate of 7.25 percent on RDs with a maturity period of 60 months.
IndusInd Bank offers a competitive 7 percent interest rate on recurring deposits lasting for 61 months and beyond. Senior citizens receive an extra 0.50 percent interest.
Axis Bank presents an attractive 7 percent interest rate on 5-year RDs. Senior citizens can enjoy a higher interest rate of 0.75 percent on RDs exceeding Rs 5 crore.
HDFC Bank provides a lucrative 7 percent interest rate on 5-year RDs set to mature in 5 years. Senior citizens are eligible for an even higher interest rate of 7.50 percent.