Latest Recurring Deposit Interest Rates of Small Finance Banks
2 min read
In this article you will find the latest Recurring Deposit (RD) Interest Rates of Small Finance Banks in India. These interest rates are as on last updated by the banks respective websites.
Recurring Deposit (RD) Interest Rates of Small Finance Banks (May 2023)
Introduction
In this article, you will find the latest Recurring Deposit (RD) Interest Rates of Small Finance Banks in India. These interest rates are as last updated by the bank’s respective websites.
Recurring Deposit Interest Rates of Small Finance Banks (May 2023)
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 small finance 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 lump sum amount which includes the regular investments as well as the interest earned.
Below are the Recurring Deposit (RD) Interest Rates offered by major small finance banks for various durations :
RD Interest Rates for Tenure up to 2 years
Summary
- For a tenure of less than 2 years, Utkarsh Small Finance Bank offers highest interest rate up to 8%. North East Small Finance Bank also offers a comparatively higher interest rate (7.50%).
- While, for tenure from 2 years up to 10 years, Utkarsh Small Finance Bank & Suryoday Small Finance Bank offer highest interest rate of 6.75% for the Tenure of 60 months (5 year).