Banks that Offer Best interest rates for Recurring Deposits | Fusion - WeRIndia

Recurring Deposits (RDs) help you save small amounts at regular intervals like a month. They promote discipline in investing because they are compulsory savings once started. Moreover, they are safe and secure and hence ideal for risk averse people.

RDs are good for people who fall in lower income tax bracket because the interest earned on them are not tax free. Yet, the interest is not deducted at source by the banks, but taxable as per one’s own tax liability.

The interest rates on RDs are compounded quarterly.

Here is a list of some banks that offer higher interest rates on Recurring Deposits.

HDFC Bank and ICICI Bank offer 8.75 percent interest rate. But the tenure varies with each of them. The tenure is 12 months to 60 months for HDFC Bank, and it is 15 months to 60 months for ICICI Bank. A flexible RD scheme is offered by ICICI Bank under which no penalties are levied for delayed payments. Axis Bank offers 8.90 percent interest rate on a deposit period of 18 months to 36 months.

Ratnakar Bank offers 9.5 percent on RDs for a period of 1 to 5 years. Development Credit Bank also offers 9 percent interest on RDs for a tenure of 1 year and more than 9 percent for the deposits having tenure of over one year. Laxmi Vilas Bank and City Union Bank offers 9 percent on RDs for a tenure of 1 to 5 years.

So, if you are the person who are in the lower tax income bracket, opt for any of the above schemes that fits best for you.

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