RD Interest Rates of Top Banks (September 2019)

Introduction

In this article you will find the Recurring Deposit (RD) Interest Rates of major banks in India. These interest rates are as on last updated by the respective websites.

Recurring Deposit

What is Recurring Deposit (RD)?

• A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by Indian Banks. It is an investment tool which allows people to make regular deposits and earn decent returns on the investment. 
• Due to the regular deposit factor and an interest component, it often provides flexibility and ease of investments to users/individuals.
• However, it is essential to know that RDs are different from Fixed Deposits/FDs . RDs are flexible in most aspects. An RD account holder can choose to invest a fixed amount each month while earning decent interest on the amount. RDs are an ideal saving-cum-investment instrument.
• Most major banks in India offer Recurring Deposit Accounts, with a term that often ranges between 6 months  to 10 years, also providing individuals with the opportunity to choose a term according to their needs. However, the interest rate, once determined, does not change during the tenure.
• On maturity, the individual will be paid a lumpsum amount which includes the regular investments as well as the interest earned.

Below are the Recurring Deposit (RD) Interest Rates offered by major banks for various durations :

Recurring Deposit (RD) Interest Rates for tenure up to 2 years

Recurring Deposit (RD) Interest Rates for tenure from 2 years up to 10 years

Notes :

1. Citibank provides RD’s with minimum tenure of 1 year and maximum tenure of 2 years.
2. All the banks mentioned above offer 0.50% extra interest rates for senior citizens.
3. Only Bandhan Bank offers 0.75% extra interest rates for senior citizens. And Axis Bank provides variable higher interest rates for senior citizens.

Summary

• Bandhan Bank provides the highest interest rates 7.65% on RD’s for maximum tenure (120 months), while IndusInd Bank provides the highest interest rates 7.50% on RD’s for 1 year tenure (12 months).
• Yes Bank  provides the highest interest of 7.75% for the tenure of 24 months.
• HDFC Bank, Kotak Mahindra Bank, IndusInd Bank, Yes Bank, DBS Bank and IDFC Bank also provide high and competitive interest rates on RDs.

Updated Interest Rates of Savings Account

In this article you will find the Interest Rates of Savings Account provided by major banks in India. These interest rates are as on last updated by the banks respective websites.

Digi bank by DBS (DBS Bank) offers the highest interest rate on savings account. The interest rates are as follows :-

(Balances up to 1 lakh will get 5.5% interest rates. Any balances over and above 1 lakh & up to 2 lakhs will get 7% on the incremental amount, 2 lakhs & up to 5 lakhs will get 5% on the incremental amount & 4% on the remaining balances.)

The list of banks below offer the following interest rate :-

Some banks offer the following interest rates on their savings account :-

Summary:-

• We can see that most of the major banks in India offer almost same interest rates. The most basic interest rates offered by the maximum bank ranges around 4%.
• DBS Bank is the one that provides the highest interest rates on the balance in your savings account. But, DBS has very limited reach. They are only based in metropolitan cities and some other few cities. It is only beneficial to choose DBS Bank if you have a branch near you. Otherwise, opting for another bank would be better as getting services and other advantages from DBS Bank will be an issue.

• After DBS Bank, RBL Bank (formerly  known as The Ratnakar Bank limited) offer higher interest rates on your balance in savings account.
• Kotak Mahindra Bank as well as Bandhan Bank also provide high and competitive interest rates on their savings account. In comparison with top banks in India, Kotak Mahindra Bank has the widest reach across India. Their branches and ATM’s are spread all over India. It has quite high reachability.

FD Interest Rates of Major Banks (September 2019)

Introduction

In this article you will find the Fixed Deposit interest rates provided by major banks in India. These fixed deposit interest rates are as on last updated by the banks o their respective websites.

Fixed Deposit Interest Rates of Major Banks September 2019

• Fixed Deposits (FD’s) enable investors to earn higher interest on their extra funds. Interest rate on fixed deposits is guaranteed for the duration of the deposit.
• Interest rates on FD’s are fixed when you open the deposit and the rate depends on the tenure that you wish to hold it for. The rate of interest may vary as per amount, period and from bank to bank.

Below you can find the interest rates on fixed deposits for various tenures provided by major banks in India :-

FD Rates for tenure less than 1 year :

FD Rates for tenure from 1 year up to 10 years :

Summary

1. For tenure less than 1 year, Yes bank (Maximum= 7.15%) offers highest interest rate. IndusInd Bank and RBL Bank also offers higher and competitive interest rates (7%).
2. For tenure from 1 year up to 10 years IDFC bank (maximum= 8%), IndusInd bank, RBL bank, Bandhan bank and DBS bank are among the highest interest rates offering banks.

 Note:-

• Senior citizens attract an additional 0.50% on their FD interest rates. All most all the bank provide additional 0.50%.
• A few banks such as RBL bank and IDBI bank provide FD’s with a tenure of 20 years.
• The above tenures are not common to all the banks. Some banks may have different tenures and may be presented in a different manner. Some may also have some extra tenures.
• The above interest rates are for deposits less than Rs. 1 crore and in some cases less than Rs. 5 crores. (as specified by the bank on their website)

Small Saving Schemes Interest Rates July 2019

Introduction

In this article we will see the updated Interest Rates on Small Saving Schemes – EPF, PPF, SCSS, SSY, NSC, KVP for 2nd quarter (July-Sept) of FY2019-20. These interest rates are as on last updated by the government. If you are planning to invest in any of these saving schemes, you should know about their interest rates. For all the small saving schemes interest rates are aligned with Government security rates of similar maturity, with a little spread.

Different Small Saving Schemes

Below you can find the interest rates for various small saving schemes:-

public provident fund (ppf)

• PPF is a long-term investment for a period of 15 years. The government will review the PPF rates quarterly.
• PPF scheme currently offers an interest rate of 7.90% per annum for 2nd quarter of FY2019-20 compounded annually.

Employee Provident Fund (EPF)

• Employee Provident Fund is a long term investment tool. Interest rate on EPF contributions is revised every year.
• The interest rate currently on investments in EPF is 8.65% Per Annum for 2nd quarter of FY2019-20.

Senior Citizen Savings Scheme (SCSS)

• The government will review the SCSS rates quarterly. But, once a subscriber has enrolled, the rates will remain unchanged for the tenure. Deposit has a maturity period of 5 years.
• This scheme currently offers 8.60% interest rate per annum for 2nd quarter of FY2019-20 compounded annually.

National Savings Certificate (NSC)

• From FY2016–17 onwards, the interest rate on the NSC will be revised every quarter as per the prevailing government-bond rates. However, once you have invested in the NSC, the rate applicable that time will remain the same throughout the tenure of the investment. Certificate comes with the maturity period of 5 years.
• NSCs (5 year VIII Issue) offers 7.90% interest rate for 2nd quarter of FY2019-20 which is compounded annually but is payable at maturity.
• [The 10 year option of the NSC has been discontinued]

Kisan Vikas Patra (KVP)

The KVP rates will be notified every quarter as per the prevailing government security rates. Scheme aims at doubling the investment in 115 months (9 years 5 months) with the applicable interest rate.

However, once you have made an investment, the rate will remain unchanged for you throughout the tenure.

KVPs offer 7.60% as interest rate for 2nd quarter of FY2019-20 which is compounded annually.

Sukanya Samriddhi Yojana (SSY)

• The interest rate for the SSY is to be 75 basis points over the ten year government bond yield. The rates will be revised every quarter and the new rates will be applicable to all the subscribers.
• Scheme currently offers an attractive interest rate of 8.40% per annum for 2nd quarter of FY2019-20 compounded annually which is calculated on a yearly basis.

Tax Saver 5-year Fixed Deposit Interest Rates of Major Banks – Mar 2019

In this article you will find the interest rates provided by major banks in India on the 5 year Tax Saver FD option provided by them. These interest rates are as on last updated by the respective websites.

In Tax-Saver Fixed Deposit both the tenure and the interest rate for the tenure are fixed. It is unique from other fixed deposits.

The minimum amount to be invested in a tax saver fixed deposit is Rs 100. And the maximum amount that can be invested in a year is Rs. 1.5 lakhs. The minimum amount varies from bank to bank. But the maximum amount is fixed under the Income Tax Act.

The rate of interest is pre-determined, but higher than the savings account. Senior citizens earn higher interest rates than others. The interest rates for Indian citizens, HUFs and NRIs vary from bank to bank.

Given below are the interest rates offered by banks on Tax Saver FD’s:-

Notes

• Most of the banks offer additional 0.50% interest rates to senior citizens.
• RBL bank and Bandhan bank offer 0.75% extra and IDBI bank offers 1% extra interest rates to senior citizens.
• Some banks such as Citibank and Bank of India don’t offer additional interest rates to senior citizens. The interest rates provided by them to general public and senior citizens on Tax saving FD is same.

Summary

• IDFC bank offers the highest interest rate on Tax Saver 5-year FD.

IDFC bank has been there for a long time. They have a wide spread reach. They have their branches all across India.

• After IDFC bank, RBL bank and IndusInd bank offer higher interest rates.
• HDFC bank, ICICI bank and Yes bank also have high and competitive interest rates.